Direct Line insurance cautions against cutting corners

New research from Direct Line Insurance reveals that the high cost of buying a first home is forcing buyers to cut corners, with more than two million new homeowners opting not to insure the contents of their home in a bid to save money.

Dispelling the myth that 'the young today only buy new', the research highlights that 40 per cent of first-time buyers beg and borrow furnishings and fittings from relatives and friends, and a further three out of ten buy second hand, compared to just a fifth who buy new.

Yet despite the trend to 'buy down', Direct Line estimates the average contents value of a starter home (one/two bedroom flats and terraces) is £15,000-20,000, meaning that over £36 billion home contents - new and old - are currently uninsured.

Direct Line urges all homeowners, new and existing, to look beyond the age and origin of their home contents to what it would cost to replace them if stolen or damaged.

Simon Ziviani, a spokesperson for Direct Line Home Insurance, commented: "We would recommend first-time buyers not to lose sight of the fact that if they were in the unfortunate position of having to replace their home contents, it could strain tight budgets even further.

"Regardless of whether furniture, fittings or electrics are old or new, their value adds up and the cost of replacing them would most certainly outweigh the price of an annual insurance premium."