While a record number of first time buyers are using intermediaries to arrange mortgages, only 5% of consumers are doing the same when it comes to protecting their homes, general insurance provider Paymentshield has claimed.
Research carried out by UK Finance revealed that 74% of those making their first move onto the property ladder in 2017 did so with the support of an intermediary – the highest number since the house price crash of 2008.
However, according to a YouGov poll of over 2,000 people carried out by Paymentshield, just 5% of consumers would consult a professional adviser when purchasing home insurance policies. Instead, 34% choose to get their cover via comparison sites.
It also found that only 11% of consumers would turn to an adviser for financial advice in the next q2 months, preferring to turn to parents (13%) or online forums (12%). 58% of people have never reviewed their finances with a professional and only 4% of people are likely to seek professional financial advice to improve their financial situation over the next 12 months.
James Watson, sales director at Paymentshield, said: “The attitude towards advice from first time buyers is encouraging and demonstrates a shift in behaviour among the newest generation of homeowners that I hope will filter its way through the rest of the nation.
“However, the advice shouldn’t stop with the mortgage. First time buyers are vulnerable, having limited knowledge of home ownership and are therefore most in need of advice on protecting their investment.”
Despite people opting to buy insurance online, data from the YouGov survey states that just 65% of those choosing to use online aggregators say they are confident that their policy would pay out in the event they made a claim.
Watson added: “Only when someone discusses their exact requirements with a qualified expert can they be totally confident that they have a product that suits their needs. In order to alert your client to this, it’s more important than ever to have regular, open conversations surrounding the importance of investing in the right products.
“The value of support and guidance from professionals should never be underestimated, particularly when it comes to conversations surrounding assets as valuable as your home. That’s exactly why I believe advisers have a responsibility to protect this investment by discussing general insurance every time they arrange a mortgage – no matter where your client sits on the property ladder.”