Five million households have no insurance

Despite the winter months fast approaching, where home insurance claims can often peak due to adverse weather, people are shunning home insurance altogether, or opting out of continuing with their insurances at renewal, with 42 per cent claiming that they cannot afford to take out cover.

The research has revealed that over two thirds (68 per cent) of people are worried about money with 28 per cent having more outgoings than incomings, the average deficit being £165, and that over a quarter (26 per cent) of people do not feel confident that they can pay their bills every month.

The new research comes as Co-operative Insurance and Shelter are joining forces to help raise money for the charity's vital work helping families across the country find and keep a decent home of their own. £5 will be donated to Shelter for every new Co-operative Insurance Home Insurance policy purchased.

Although not having home insurance can have major implications, over a fifth (22 per cent) of people do not think that home insurance is important, while 18 per cent do not believe that they have anything worth insuring. 16 per cent of people have never got round to taking insurances out and 15 per cent don't have any because it is not a legal requirement.

Lee Mooney, head of home insurance at The Co-operative Insurance, said: "At the moment everyone is, understandably, looking to save money however a worryingly high percentage of population do not have home insurances and are leaving themselves open to much greater risks and expenditure in the long run.

"If there is a fire, originating from an uninsured home, which causes damage to other surrounding properties the uninsured person would be liable for repairs to all the damaged properties. Also if a policyholder decided to cancel their insurance and then an essential but expensive item was broken or stolen they could find themselves in a difficult situation, especially as the research shows that many people's outgoings are more than their incoming wage."

The Co-operative Insurance is looking to raise £250,000 for Shelter through the partnership, with all the money raised going directly towards Shelter's vital housing advice service and free helpline, which helps thousands of people across the country keep a roof over their head.

Lee Mooney continued: "Unfortunately thousands of households are struggling with their finances and as a result an increasing number are at risk of losing their homes. The Co-operative Financial Services is proud to be working with Shelter to help people stay in their homes and take control of their finances."

Campbell Robb, chief executive of Shelter said: "Nothing is more important than having the safety and security of a decent home. At Shelter we help people every day in desperate housing need and we are extremely grateful to Co-operative Financial Services for helping raise much needed money so we can help even more families during this difficult time.

"Through this partnership we hope that not only will people have the peace of mind that their own home is safe and secure, they can also make a huge difference to thousands of people in real housing need."