Over half (56 per cent) of homebuyers would pay more for home insurance if it gave them peace of mind they had the right cover, research by Paymentshield has discovered.
The research, which was conducted by YouGov among 2,067 adults, found a growing appetite among consumers for advice when purchasing home insurance, with peace of mind emerging as a more important factor than price for many.
Peace of mind was the biggest driver for those seeking advice, with 35 per cent citing this as the main reason.
A further 28 per cent of respondents say they would want advice because they believe they would end up with a better product.
Paymentshield proposition director, Louise Pengelly, said: “Peace of mind is worth a lot and for many consumers, it’s valued more highly than the cost of the policy itself, as long as they can trust it will protect them when needed.
“What’s especially encouraging is the number of people who say they want advice.
“This research shows there’s a large, receptive audience ready to engage with advisers — and it clearly challenges the idea that clients aren’t interested in talking about insurance.”
In contrast, cover anxiety emerged as a “significant” problem where people have purchased policies online without receiving advice.
Some 24 per cent of respondents admitted they have had doubts about their cover when they have purchased home insurance online.
This rises to 33 per cent where people have purchased via a price comparison site in the past 12 months.
The data also indicated that cover anxiety increases in households with children as the proportion of people expressing doubts about their cover rose with each additional child, peaking at 42 per cent in households with three or more children.
This suggests that time-pressed parents may be rushing decisions without fully considering the details of their policy.
tom.dunstan@ft.com
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