The insurer has noted that throughout the country, many Britons are in possession of policies which would not meet the total cost of repair or replacement of possessions in their home should they be burglarised, struck by storms or some other unforeseen occurrence.

Even though homeowners in Britain believed that the contents of their property is worth some 38,000 pounds, the average cover taken out on such items would only protect 29,000 pounds worth of goods, potentially leaving people to pay the additional cost of replacement or repair using savings or loans.

Veering away from taking out full cover could leave people in dire straits financially, something which may be particularly worrying at this time of economic adversity.

Indeed, the group warned that while it may seem like a good idea to scrimp on cover, picking the cheapest option could end up in a circumstance where the cost benefits are wiped out by a shortfall in cover which leaves consumers to pick up the pieces.

Evidence cited by the firm showed that taking out more robust insurance may be particularly important for those living in the north-west, as this area was shown to have the lowest per household contents limits in the country, at 25,500 pounds.

Meanwhile, residents in the north-east were found to have 36,000 worth of cover on average, meaning that people here find they are encumbered with less of a financial burden should their property be damaged or stolen.

Of course, those who are find they are caught short of cover may wish to take out a personal loan to replace or repair items quickly. This type of loan may be particularly useful if people find their lounge is targeted by burglars or subject to some other natural mishap. According to the group, this room is the most expensive area of the home, followed by the kitchen, both of which typically harbour a wealth of gadgets, appliances and other valuables.

Nick Kidd, head of household insurance at Axa, commented: "It may seem a good idea to many - particularly in today's climate - to pick the cheapest option when it comes to home insurance and save a few pounds, but 20,000 pounds or even 30,000 pounds worth of insurance is unlikely to cover all the contents in your home.

"Its very easy to under-value your possessions. When taking out home contents insurance, its absolutely vital you have a clear idea of what your possessions cost: under-insuring could lead to your policy being invalidated. We would advise people to keep receipts of all major possessions [and] take pictures of their most valuable items."

Getting a cheap loan may be of interest to those who are planning on making a major purchase in the coming months, while any additional cash leftover could be put towards boosting a home insurance policy to make sure new possessions are well protected. Meanwhile, Abbey has also warned that while many be trying to save their pennies, it is important that they have adequate cover as there is likely to be an increase in the number of burglaries over the coming months.