Some 21% of people are clueless about how big their insurance bills could be in the event of a claim, new research from Go.Compare has found.
Younger generations seem to be more experienced at researching excesses – with less than one in 10 (9%) 18 to 24-year-olds with a contents home policy not knowing their compulsory and voluntary excesses.
However, older generations may be more at risk of an unplanned-for knock to their finances, as a quarter of 45 to 54-year-olds with contents cover admitted to being clueless about their excesses.
Ceri McMillan, Go.Compare’s home insurance spokesperson, said: “Home insurance is designed to protect us in times of crisis and help when we need it the most.
“This could be to help cover damage to your home, theft, or in an extreme case, even a complete rebuild.
“In stressful times like these, the last thing we want to think about is how much will be needed from our own pockets – but this could vary a lot, depending on your contents home insurance policy.
“Knowing your voluntary and compulsory excesses is vital, so that you are prepared for any potential costs if you have to make a claim.
“When it comes to choosing a contents home insurance policy, you should always look closely at the excesses and any other potential fees, and factor these in as you decide if the policy is right for you.
“Choosing lower excesses will mean you have less to pay in the event of a claim, but it will likely increase the cost of your home insurance premium.
“We always recommend that customers use an online comparison tool, as this is the quickest way to compare options and find the right cover.”
