Many homeowners are neglecting to invest in building insurance, according to a new survey.

Research by Nationwide concluded that 39 per cent of those involved in the survey admitted they do not have buildings insurance cover and would be unable to recover losses if their homes were damaged in floods, storms or a fire.

The study also discovered that many younger people fail to fully understand the purpose of buildings insurance, with many respondents aged between 16 and 34 admitting they did not know whether they were covered or not.

A total of 25 per cent of people did not opt for contents insurance either even though they estimated that their belongings could add up to between £10,000 and £40,000.

Nationwide's insurance director Robin Bailey, said: "It's astounding that so many people are prepared to take such a gamble on their homes and personal belongings when you consider how much time and money we all invest in our homes.

"You never know what is around the corner and for that reason it is vital that people are prepared by having adequate insurance," he added.