Lack of home insurance 'is concerning'

An increasing number of mortgage holders are opting not to take out a home insurance policy, it has been claimed.

Roy Morgan Research has revealed that 90.1 per cent of Aussies are currently covered against damage to their home, which is down from 92.2 per cent in 2008.

Unsurprisingly, a study conducted by the organisation found that people with low incomes are less likely to insure their property.

Many households have been badly affected by the rising cost of living in recent years and research undertaken by Mercer in 2012 showed Melbourne and Sydney are among the most expensive cities to live in the world.

Norman Morris, Roy Morgan's industry communications director, said: "It should be of concern to the insurance industry and the government that there is a trend for home owners to drop out of insuring."

Encouragingly, more people are comparing different quotes before committing to a particular insurer.

This is certainly a technique that house hunters should also use in order to find the best home loans.

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