Homeowners must borrow to fix house

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More and more people are in need of cheap home insurance after one in six people admitted having to rely on credit to fund basic household breakdowns.

Almost half (45%) said they could afford no more than £500 if an emergency arose, according to research from Alliance & Leicester Savings.

About 5% of people said without adequate home insurance they’d have to borrow from a friend or relative to pay for repairing a boiler or replacing a faulty washing machine, with many saying they would sell something to meet the costs.

With the economy struggling and householders feeling the effects of increased fuel and food prices, almost one in ten (8%) have admitted to not knowing how they’d cover the cost of something breaking down.

Hetal Parmar, Manager for Savings at Alliance & Leicester commented: "The reality of being a homeowner means that at some point you will inevitably have to pay out for repairs such as broken boilers and faulty appliances. We would encourage people to start saving sooner rather than later to avoid a basic household emergency becoming a financial headache."

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