Consumers should “prioritise” when deciding on house insurance

Consumers need to decide what their main concerns are when making the decision on whether they can afford a home contents insurance policy, the British Insurance Brokers’ Association (Biba) has said.

Many policies are not overly expensive and cheaper prices are also available from some major metropolitan authorities and private landlords who buy in bulk, according to Peter Staddon, head of technical services at Biba.

Although this means that it is easier for people on low incomes to gain access to these insurance policies, Mr Staddon acknowledged that “if it comes down to a choice between putting food on the table for the children or insuring the house, the broker is failing”.

He concluded that consumers would have to decide whether home contents insurance was a priority for them, however, he also warned of the dangers and financial consequences that people without house insurance face in the event of a disaster.

Experts have noted that the insurance industry is looking for ways to make home contents affordable for those on low incomes, following the summer flooding last year.

Tags: consumer, head of technical services at Biba, disaster experts, insurance brokers association, BIBA, private landlords, metropolitan authorities, British Insurance Brokers Association

Home insurance ’second most important insurance you can buy’

Homeowners are being urged to take out insurance for their homes if they have not already, as it is the “second most important insurance you can buy”, one expert claims.

The British Insurance Brokers’ Association (BIBA) said only car insurance, which is a legal requirement, is more important than home insurance.

According to the organisation, insurance premiums for buildings and contents insurance are still low as they have “hardly changed” in the past ten years.

Graeme Trudgill, technical and corporate affairs executive of BIBA, said: “Look at the flooding that we have had – 75 per cent of people have contents insurance which means 25 per cent don’t.”

“This means that if something happens, they have lost everything,” he added.

According to BIBA, a mortgage holder could also be breaking part of a contract between themselves and a mortgage lender if home insurance is not in place.

Meanwhile, figures from the Association of British Insurers (ABI) have shown that the UK insurance industry paid out £9.0 million to householders in 2006 for property damage or the loss of possessions.

Tags: buildings and contents insurance, Graeme Trudgill, buildings and contents, Association, BIBA, British Insurance Brokers

BIBA: Students should take out contents insurance

Students are advised that they should get their valuables covered while living away from home.

The British Insurance Brokers’ Association (BIBA) said that many students are not covered by their parents’ household insurance.

It warned that this leaves their valuables at risk, and while most students do not prioritise getting insurance, it is a sensible thing to do.

Graeme Trudgill, technical services manager for BIBA, said that a quarter of all parents do not have home contents cover at all, meaning that many students could find themselves spending a lot on replacing lost items.

He added: “A lot of students these days have laptops, iPods, digital cameras, DVDs, mobiles, stereos… and that can add up to a lot of money.”

Recent Home Office figures show that people under the age of 24 are more likely to be burgled and that as many as one in three students becomes a victim of crime.

Furthermore, the London Student Housing Guide found that the average cost of a burglary to a student is £900.

Tags: household insurance, laptops, Fashion, BIBA, Association

Biba encourages PPI

Insurance brokers are being encouraged to include payment protection insurance (PPI) with their products.

The British Insurance Brokers’ Association (Biba) is launching a series of new incentives aimed at attracting brokers to selling PPI.

Biba is offering products with enhanced benefits, a more competitive rating structure and improved commissions.

The organisation says that driving PPI will benefit consumers as they will receive better protection on loans, income and mortgages.

The changes include the introduction of partial cover on stress, back-related and pre-existing conditions, as well as the removal of exclusions relating to Aids.

“We can all see that the distribution landscape for PPI is changing as many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” said Eric Galbraith from Biba.

“This recent attention has shaken consumer confidence in buying PPI from non-broker channels and the time is right for brokers to seize their market share. We’re providing our members with the right tools to do this.”

Customers taking out any kind of loan should consider PPI, as it offers protection against any unforeseen changes in your personal circumstances.

Biba has promised to give brokers “whatever level of support they require” and has described the new products as “a win, win scenario”.

Tags: barclays, non-broker channels, rating, Fashion, Eric Galbraith, kind, ppi, BIBA