A study carried out by a major lender has highlighted, once again, the particular importance of home insurance during times of economic downturn.

The research, compiled by Abbey Insurance, points out that during the last major recession in Britain, back in the early nineties, domestic burglary rose over a third from pre-recession levels. The insurer points out that the need to protect your possessions is thus more vital than ever with the black clouds on the current economic horizon.

Thierry Campet from Abbey explained that: "With the first quarter of negative growth already recorded most commentators are expecting the UK to officially be in a recession by Christmas. The admission that crime is likely to rise as a result of the deteriorating economic climate, should stand as a warning to us all to ensure we keep ourselves protected," he said.

Abbey's figures show that during the period between May 1990 and March 1992, the official crime statistics compiled by the Police forces of England and Wales reveal an upwards trend of 33.8% in household crime. This research is also backed up by figures compiled by the British Crime Survey.

Because of the current downturn many people are having to prioritise outgoings that they previously took for granted and this includes home insurance, so this news from Abbey indicates that it could well be a false economy.

Cut-backs

"When household budgets tighten and families look to cut back on financial expenditure there are the usual outgoings that people feel they can cut back on. Wrongly, many people believe home insurance is one of these. However during these times, protection is increasingly important and should not be overlooked," said Campet.

The insurer also noted that it is important not only to have insurance but have the right level of cover to protect your possessions. They point out that by taking out unlimited cover on your home, despite being a little more expensive, will give you the peace of mind that everything is fully covered.

"At this stage, not many insurance policies provide cover for an unlimited amount. Policies without this provision may not cover you for the full amount of your home contents. Look for peace of mind with an unlimited sum policy and, in the event of being burgled you can feel confident that your total home contents will be covered," a dded Campet.