The ongoing recession has done so much damage to most households, but one thing it has failed to do is deplete the value of their home contents. And in spite of the real threat of burglary and other likely incidents, households in the UK collectively boast of possessions worth up to £154 billion. Amazingly, all these are uninsured by their owners and left at the mercy of unforeseen happenings.

Cutting down expenses

In the last one year insurance policies have suffered increasing neglect from people across the country. While this is not usually intended to downplay their importance, the main motivation is the bid to save money. Although the credit crunch also means people’s income decreasing and their purchasing power massively cut, bill and debts are on the other hand accumulating and desperately needing sorting out.

One way many believe they could cope with the situation, as desperate as it continues to be, is by reducing their expenses. Often in a climate like this insurance policies, which should normally be jealously protected, suffer the highest number of casualties. This is because most people are misled into believing it is a cost-effective decision cutting down or cutting out insurance protection.

Inadequate insurance or lack of insurance                          

Whereas at a point during the credit crisis the most hit was life insurance policy, as people failed to understand its main relevance at a time of financial downturn, but as the recession deepened it was found that more and more people were gradually downgrading the value of other policies. In some cases many would outrightly cancel their entire policies and opt to risk it all by staying uninsured.

Inadequate insurance or the complete lack of insurance is a major concern. For those whose home insurance policies are either inadequate, as they do not cover their home content, or those whose policies have been cancelled it is essential to note that this is an unwise way of saving money. Times without number has this strategy been also described as a false economy because in the end one pays more to get the policy reinstated or they get no help at all when they need it most.

Understandably, as about 46 per cent of the 3.9 million households in Britain found to be uninsured admitted not being able to afford the cover, it still boils down to the question of surviving to live on and not surviving only to be vanquished by a minor threat.

Be prepared

Maybe people will be more willing to act to protect their possessions if they are constantly reminded that recession comes with increasing insecurity and the likelihood of more incidents of burglary. The fact is as more people lose their jobs they tend to consider every possibility of survival, including burglary. And with possessions, gadgets and jewellery as expensive as can be imagined stockpiled, households considered relatively better off easily become the target to burglars.

As a final word of advice people, whether homeowners or renters, need to realise the danger they face by not being insured and act fast to change the situation. They must understand that having an adequate home insurance policy covering their home content is an essential security need that will save them hundreds of thousands of pounds in the event of an accident or burglary.

For those in doubt speaking to an expert will make a difference.