'Amazing' apathy on insurance.

A NATIONAL survey has revealed that one in three (35 per cent) of people misunderstand insurance terminology, such as 'building sum insured' - while half ignore their policy documents.

Of the 51% who failed to look at their home insurance terms and conditions 40% of those said they simply 'can't be bothered' to do so, the survey, commissioned by home insurer, Congregational & General, showed.

A further 31% don't review them as they usually stay loyal to their current insurers by renewing existing policies instead.

The poll appears to prove the adage 'older and wiser'. Over 45s (85%) were significantly more savvy than younger generations (53%) when asked to define this term, with superior knowledge of phrases like 'excess' (88% v 59%) also noted.

The survey showed some naivety by the under 45 age group, with three times as many (16%) wrongly assuming that if insurance is advertised for cover up to pounds 1m, they would receive this amount in the event of a major claim.

This figure decreased with age as only six per cent of over 45s had the same misconception.

Commenting on the survey, Margaret Slater, marketing manager at Congregational, said: "Our research clearly shows that some people misunderstand common insurance terminology.

"However, while some people misinterpret insurance phrases, many just don't take the time to clarify the terms of their policy and assume insurance covers everything.

"Conversely, no insurance policy covers against every possible contingency.

"We're not looking to criticise people, but with the current economic downturn it is vital to draw attention to ways in which consumers can ensure they are properly covered.

"By highlighting the importance of reading and understanding insurance policies we hope to do just that."

The survey also showed that men were twice as likely to exaggerate claims in the hope of getting a higher pay out.