Insurance for mortgages 'not a priority for many'

By Marianne Straker, Thu 17 Apr 2008 - Published in Home Insurance

Taking out protection insurance for mortgages is not a top priority for many consumers, despite its benefits, it has been claimed.

According to Joe Wiggins, PR manager for protection at Legal & General, consumers fail to take out insurance for the protection of their mortgages.

"Protection insurance tends to be under-prioritised in general. In fact, we estimate that more people have mobile phone insurance than critical illness cover and income protection, which seems misguided," said Mr Wiggins.

He also stated that there has not been a marked increase in interest in the product during the first quarter of the year, when compared to the same period last year.

Protection insurance on a mortgage is not compulsory, but does work to protect payments should a homeowner be unable to pay for a number of reasons.

Research from the Association of British Insurers carried out in 2006 suggests that around 20 per cent of households in the UK have mortgage payment protection insurance.

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