Research from The Co-operative Insurance has revealed the common insurance pitfalls first time buyers are making when it comes to purchasing their first property.
20% of first time buyers between the ages of 25 and 34 are underinsuring their homes, leaving their property and belongings exposed, as they admit to purchasing only buildings or contents insurance, rather than the two combined.
Across all age groups, 9% of first time buyers admitted to only purchasing buildings insurance after they had moved into the property, despite it being a purchaser responsibility to have buildings insurance in place from the date of exchange. 19% also didn’t have contents insurance in place before they moved in to a property.
The Co-op found that insurance mistakes are not the only ones being made by first time buyers, with many rushing ahead buying furniture for their new home that won’t fit. 31% said they had bought furniture before measuring up the size of the rooms accurately. Of these, 25% said it was a nightmare to get their furnishings into the property, 16% had to remove a window, and 7% actually caused damage to their new home by moving the furniture in.
Caroline Hunter, head of home insurance at The Co-operative, said: “The research shows that there are a number of first time buyers who may be getting their priorities wrong when it comes to moving. Buying a property is a complex process and a lack of understanding means that many people are not adequately covered when it comes to insurance.”