A national survey of over 2,000 people conducted by YouGov, on behalf of the Association of British Insurers (ABI) has revealed around 22% of people have said they had either cancelled or not renewed their home contents cover during the past 12 months in order to save money, while 17% no longer have buildings insurance cover.

The findings are distrurbing with the lack of cover leaving many families even more exposed to their biggest fear in the recession: nearly half (49%) of those surveyed said that they currently worry about their in ability to cope with a sudden event, such as a burglary.

Stephen Haddrill, the ABI’s Director General, commented:

“Cutting back on insurance protection is a false economy. In these uncertain times, insurance provides a vital financial safety net to steer individuals, and families through the recession, as well as helping to provide long-term security.

“The insurance market remains very competitive, so shopping around can help you get a good deal, while ensuring that you are not at the mercy of the unexpected. Ditching insurance or reducing your cover must only be a last resort.”