More than 3.4 million households are risking losing their homes if the worst were to happen, due to not having adequate life insurance in place, new research has revealed.

The research, commissioned by Cavendish Online, surveyed 1,002 homeowners to find out about first time buyer milestones, discovering average timings for executing 10 different insurance and renovation aspects, as well as analysing homeowners’ perceived importance of these, to see where new homeowners’ priorities currently are.

The findings suggested that buildings insurance (96%), contents insurance (94%) and buying new furniture (93%) were the most important aspects for new homeowners to execute.

Ordered by importance (those who had already executed this aspect, or were planning to do so):

  1. Buildings insurance: 95.8%
  2. Contents insurance: 93.6%
  3. Buy new furniture: 93.3%
  4. Modernising kitchen: 77%
  5. Life insurance: 76.4%
  6. Modernising bathroom: 75.8%
  7. Replace flooring: 72.7%
  8. Replace boiler: 69.9%
  9. Replace / add double glazing or other insultation: 68.9%
  10. Add extension / extend into loft: 47.2%

Almost a quarter of households surveyed did not have adequate life insurance in place, putting their families at risk if the worst were to happen. This equates to an estimated 3.4 million households in the UK, with Nottingham, Newcastle and Birmingham being least likely locations to have this insurance in place. On the other hand, Glasgow, Edinburgh, and Belfast were most likely to have adequate life insurance already in place.

Nikita Davis, Insurance Adviser at Cavendish Online, commented:

“While not compulsory, having adequate life insurance in place is important to ensure that all (or part) of your mortgage would be paid off in the event of your death. A pay out from your life insurance can allow your family to pay off the mortgage after you pass, relieving them of a heavy financial burden. This could prevent your family from having to seriously change their lifestyle or, even worse, lose their home.

“You should consider getting covered if you have a partner or children who would struggle to live without your income or who’s life would be hugely affected without you around. At the time of writing, there were more than 45,000 deaths in the UK related to the ongoing coronavirus pandemic, so mortality will likely be at the forefront of homeowners’ minds, both during lockdown and as restrictions begin to ease.

Cavendish Online have created a useful widget, designed to help people understand based on their ‘area’ what the average age cover is taken out, sum assured, term and premium, which can be viewed here:

For those that implemented each aspect, we analysed the average timeframes that it took new homeowners to execute them. The results showed that the insurance aspects were the quickest to be completed, with buildings insurance being arranged the quickest of all, within 1.7 months of completion on average. In comparison, it took homeowners 2.4 months to sort contents insurance, whereas life insurance was typically organised within 3.4 months of completion. The average homeowner bought new furniture within 4.2 months of completion, leaving bigger renovation projects for later, but still within, the first year.

Ordered by timings (quickest to execute following completion):

  1. Buildings insurance: 1.7 months
  2. Contents insurance: 2.4 months
  3. Life insurance: 3.4 months
  4. Buy new furniture: 4.2 months
  5. Replace flooring: 7.8 months
  6. Add extension / extend into loft: 9.3 months
  7. Modernising kitchen: 10.3 months
  8. Replace boiler: 10.5 months
  9. Modernising bathroom: 10.6 months
  10. Replace / add double glazing or other insultation: 11.1 months

Nikita continued:

“At Cavendish Online, we offer various options to help you find the best insurance for you, depending on your lifestyle. You can apply for a policy online yourself, in just a few minutes. Alternatively, you can choose to speak with one of our specialists over the phone, who can guide you through the process and help you choose the best cover for you and your family”.

For more information on the research, visit: