On last night’s The One Show there was a guide to insurance products. Apparently 25% of us have no home contents insurance, and with the recession biting it’s predicted that many more people will follow suit, leaving millions under insured and facing potential financial disaster.

Independent expert Which? recommends you should not cut back on home insurance even when times are difficult. The cost of average home contents insurance is around £70 per year. This could cover the loss of around £1000 from the average burglary, and helps to insure some of the £30,000 cost of a flood.

The One Show expert stressed the importance of having home contents insurance, but said there were things you could do to reduce the cost. One option is to pay annually instead of monthly, or you could raise your excess. Make sure you’re not duplicating insurance, eg getting home contents insurance then a separate insurance policy for an electrical item like a computer - because the insurance would be duplicated and you would be paying more than necessary.

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