Brits lack emergency savings

10th August, 2005

Around 80 per cent of UK households are not regularly saving in case of an emergency with their homes, finds a new report.

A further 52 per cent of people could not afford to pay out £500 if something happened to their house, and Alliance and Leicester's report shows that not saving for a rainy day could cause future problems for homeowners.

One way of avoiding major payouts to the home is to invest in some quality house insurance, which should protect your home in an accident, as well as the contents inside it.

The lack of funding means that one in five Brits would have to borrow to repair the house, and a further 33 per cent would put up with faulty appliances as they didn’t have the money to replace them.

'It is pretty shocking to discover that so many people are adopting a ‘head in the sand’ approach to the possibility of having to fork out for unexpected household expenses,' said Mike Woodward, manager for savings at Alliance & Leicester.

House insurance is normally a small monthly payment which spreads the cost of payments over a long period, meaning that there are no nasty shocks if there is an emergency at home and you are not left with a huge bill that you cannot afford to pay.

 

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