Make Savings And Learn From Those Further Up The Ladder – Young Homeowners Almost Three Times More Likely To Take Home Insurance From Their Mortgage Provider

29 May 2012

New research(1) from Sainsbury’s home insurance reveals that 40% of mortgage holders under 34 years old have their home buildings insurance with their mortgage provider, compared to 14% of all mortgage holders. The findings also show that 15% of people with mortgages in this age bracket felt that they had to take out their mortgage providers’ insurance to secure a loan. Only ten per cent of mortgage holders thought this across all age groups.

Sainsbury’s home insurance, which recently launched a new home insurance offering that provides  Sainsbury’s shoppers with a preferential discount on their cover(3), is urging young homeowners not to assume or feel any pressure that they have to take their home insurance from their mortgage provider. Young homeowners should shop around to secure the best deal.

Ben Tyte, Head of Sainsbury’s Home Insurance said: “Whatever your reason for taking buildings insurance from your mortgage provider, whether it’s because it was hassle free or you didn’t realise there were other options, with premiums and the cost of living rising, now’s the time to shop around to see if you can get a better deal.

“We believe that we are one of the most competitively priced insurers on the market. We offer a high level of cover at a competitive price and Sainsbury’s shoppers with a Nectar card could also receive further discounts and double Nectar points for two years(4) – so they could not only save on cover but also on their shopping and fuel.”

Around 1.5 million people have their buildings home insurance with their mortgage provider because they wrongly believe that they had to take their cover, or they felt it was the only way to secure their mortgage.  A further 2.83 million people have their home insured with their lender because they made it easy for them to do this.(1)

Over a quarter (27%)(1) of those with buildings insurance have been with their current home insurance provider for between three and six years and 12% – some 4.65 million people – have been with them for seven years or more.

There are two new levels of Sainsbury’s home insurance to choose from and Sainsbury’s shoppers with a Nectar card will receive a discount of up to 15% on their premiums.  Those customers taking out Sainsbury’s Premier Cover Home Insurance will earn double Nectar points on their Sainsbury’s shopping for two years – the equivalent of up to 2% off their bills(4).  For a customer regularly spending £100 a week, the value of the Nectar points would be £104 a year which is equivalent to 49% of the average combined building and contents home insurance premium.(5)

In addition to this, between now and 4th June 2012, customers can receive 12 months cover for the price of nine on Sainsbury’s buildings, contents and combined buildings and contents insurance.(3)  Also, new home insurance customers can obtain a 20% discount if they buy online.

Both products, Sainsbury’s Home Insurance and Sainsbury’s Premier Cover Home Insurance, offer a wide range of benefits and cover. The table below gives an overview of the cover provided by the Premier Cover Policy.

Cover Offered by Sainsbury’s Premier Cover Home Insurance  Percentage of home insurance policies offering this level of cover
Unlimited buildings cover  8.3%
Sum insured contents – £100,000  54%
Legal expenses cover as standard   26.4% of contents & 24.7% of buildings policies
Single item value – £3,000  28%
Up to £3,000 of cover for digital downloads  11.9%
Personal possessions cover as standard(6)       16.5%
Cover for contents in the open -£2,500 or more(7)  17%
Cover for garden plants – £2,500 or more(8)  24%
Accidental damage by pets  11.9%
Home emergency cover as standard  15.2% of contents & 18.7% of buildings policies

Source: Defaqto research 12th December 2011 – commissioned by Sainsbury’s Bank

For more information on Sainsbury’s home insurance call 0800 260 0729 or visit



020 7282 1031 / 2842

Notes to editors:
(1) Research commissioned by Sainsbury’s Bank on behalf of its home insurance division. The consumer omnibus research of 2020 GB adults aged 18 or over was carried out online by ICM between 6th and 8th January 2011. ICM uses a large sample size that reflects the demographic profile of the UK.  Given this it is possible to extrapolate figures and make projections from the research results within appropriate confidence intervals. So 5% of the UK adult population of 45.89 million is 2.3m.
(2) This introductory discount is applied to the annual home insurance premium and not to any other products or add-ons that may be purchased. Minimum premium applies. Where multiple discounts apply, each discount is applied consecutively to the reduced premium. If paying by Direct Debit we will collect 12 monthly payments however the price is calculated based on 9 months. Offer available between 31st Jan to 4th June 2012.
(3) Up to 15% based on your circumstances and loyalty information. Sainsbury’s customers will receive a discounted rate based on information related to transactions made in Sainsbury’s supermarkets using your Nectar card. At least 10% of Nectar customers who are Sainsbury’s shoppers will achieve the maximum discount of 15%.
(4) Double Nectar points applies when you buy new Sainsbury’s Premier Cover Home Insurance combined buildings and contents cover.  Cover must be renewed at first renewal to continue receiving double Nectar points. Up to 2,500 points per month. Customers could earn 2 points on their Nectar card for every £1 spent in Sainsbury’s stores. The Sainsbury’s Bank double Nectar point reward offers an additional 2 points for every £1 spent for two years. Therefore, the total combined reward is the equivalent to 2% off when you swipe your Nectar card in-store at Sainsbury’s. Points are not available on a limited range of Sainsbury’s goods and services – see in-store or for details

(5) If you spend £100 a week at Sainsbury’s, this is equal to £5,200 a year.  2% of this is £104.  According to the AA British Insurance Premium Index, the average combined building and contents insurance premium was £211.49 in January 2012.  £104 as a percentage of this is 49%.
(6) Sainsbury’s Premier Cover Home Insurance provides £5,000 as standard but this can be increased upon request.
(7) Sainsbury’s Premier Cover Home Insurance provides up to £2,500 cover as standard.
(8) Sainsbury’s Premier Cover Home Insurance provides up to £2,500 cover as standard; for any one plant, shrub or tree cover is up to £250.

Sainsbury’s Bank:

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre
Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times.  Our products consistently top Best Buy tables and regularly win awards for quality, price and service.
Sainsbury’s Bank recent awards in 2012 include Best Personal Loan Provider, Consumer Moneyfacts; Best Low Rate Credit Card Provider and Best Credit Card Provider for use abroad (Gold Credit Card), Moneynet; Best Loan Provider, Moneysupermarket Supers.
2011 awards include Best Overall Online Provider, Best Online Pet Insurance Provider, Best Online Personal Loan Provider and Best Direct Home Insurance Provider at the Your Money Awards. It was also named Most Competitive Term Assurance Direct Provider by Moneyfacts.
Sainsbury’s Bank is a joint venture between J. Sainsbury plc and Lloyds Banking Group.
For further information and general Sainsbury’s Bank enquiries, customers can call the freephone number on 0500 40 50 60 or visit
Direct Line Insurance Group plc
Direct Line Insurance Group plc (Direct Line Group) is headquartered in Bromley, Kent; it has operations in the UK, Germany and Italy.
Through its number of well known brands Direct Line Group offers a wide range of general insurance products to consumers. These brands include; Direct Line, Churchill and Privilege. It also offers insurance services for third party brands through its Partnerships division. In the commercial sector, its NIG and Direct Line for Business operations provide insurance products for businesses via brokers or direct respectively.
In addition to insurance services, Direct Line Group continues to provide support and reassurance to millions of UK motorists through its Green Flag breakdown recovery service and Tracker stolen vehicle recovery and telematics business.
Notes to editors/webmasters
If using this article on a website, please link using the following hyperlink text at the bottom of the article:
<ahref=”“> Sainsbury’s Home Insurance</a>

For further information, please contact:
Phil Anderson / Tom Wilson
Citigate Dewe Rogerson