Nine in every 10 homeowners have never discussed how they would pay their bills if they could not work, according to data from LifeSearch.
The research, which was conducted in partnership with the HomeOwners Alliance, shows how rarely people who own their home consider their financial security.
Other findings from the 2,000 people surveyed, including 1,233 homeowners, show that 40% have never reviewed or considered their protection needs.
Meanwhile, almost eight in 10 do not know how many months of expenses their savings could fund.
A further 40% who have, or have considered, protection insurance have never reviewed it.
This is due to 18% reporting that they only have such insurance because they bought a house. This is perhaps a sign that they do not review their cover when their circumstances change.
Get the message
Other triggers for buying protection insurance include a change in relationship or family situation (13%) and a significant shift in financial commitments, such as childcare costs or receiving a large sum of money, (12%).
Communication could be the key to making homeowners consider such a policy with 5% reporting that advertising or media coverage prompted them to review their policy.
The figure rises to 14% for those aged under 35.
Other highlights from the research include 84% of policyholders have not read their documents to understand what they are covered for.
And most (94%) have not checked if they have any financial protection through their employer, such as sick pay or death in service.
Financial engagement gap
Debbie Kennedy, LifeSearch’s chief executive (pictured), said: “These figures point to more than a protection gap, they reveal a wider financial engagement gap.
“Too many homeowners are going years without reviewing their cover, checking their savings position or even understanding their mortgage balance – let alone having a proper conversation with their partner about what happens if one of them couldn’t work.
“Life changes fast, and financial resilience needs to keep pace,” she added.
“No one should be finding out what their financial safety net really looks like for the first time at the moment they really need it.”
Paula Higgins, chief executive of the HomeOwners Alliance, said that most homeowners are juggling busy lives, but staying on top of your finances is vital when you own a home.
“For many people, their home is their biggest asset, so the stakes are too high to simply hope you have the right cover in place if your income suddenly stops.
“Taking time to understand your safety net and what support you’d have in place isn’t just sensible, it’s essential to keeping your home secure in today’s uncertain economic climate.”
