40% of mortgage holders under 34 years old have their home buildings insurance with their mortgage provider, compared to 14% of all mortgage holders, according to research from Sainsbury’s home insurance.
The findings also show that 15% of people with mortgages in this age bracket felt that they had to take out their mortgage providers’ insurance to secure a loan. Only 10% of mortgage holders thought this across all age groups.
Sainsbury’s home insurance is urging young homeowners not to assume or feel any pressure that they have to take their home insurance from their mortgage provider.
Ben Tyte, head of Sainsbury’s Home Insurance said: “Whatever your reason for taking buildings insurance from your mortgage provider, whether it’s because it was hassle free or you didn’t realise there were other options, with premiums and the cost of living rising, now’s the time to shop around to see if you can get a better deal.”
Around 1.5 million people have their buildings home insurance with their mortgage provider because they wrongly believe that they had to take their cover, or they felt it was the only way to secure their mortgage. A further 2.83 million people have their home insured with their lender because they made it easy for them to do this.
27% of those with buildings insurance have been with their current home insurance provider for between three and six years and 12% – some 4.65 million people – have been with them for seven years or more.