Britons are failing to take out home insurance for their second homes, according to a new research.

The Association of British Insurers (ABI), says that up to 10% of second home owners do not have cover for the properties.

But the findings have coincided with the launch of a new type of insurance cover by MarketGuard which aims to offer homeowners protection from hikes to the base rate of interest.

The company's Interest Rate Insurance cover works by paying out to policyholders when the base rate rises above a designated level.

However, Malcolm Tarling, spokesperson of the ABI, said the lax approach on the part of second home owners is particularly worrying given the likelihood that a second home will be unoccupied for months at a time.

He said: “There are specialist insurers around that will insure second homes.

“Obviously there is the issue of the value of your homes and security. It depends very much on whether the property is left unoccupied for a long time. If it is part of a guarded complex, it's going to be cheaper than if it's on the middle of a dusty hill-top in the middle of a Greek island.”
A separate study from Zurich Private Clients found that the average value of the contents of homes owned by Britons stands at £15,200.