Homeowners advised to check insurance cover is adequate

Officials are warning consumers to make sure that they have adequate insurance cover in place as the cold weather sets in. The cold snap across the UK has already caused chaos, and with weather conditions set to get worse many people could find that it affects their homes as well as causing problems such as traffic issues.

Officials have warned that as the winter sets in homeowners need to make sure that they have the right insurance cover and the right level of cover in place in order to protect themselves against the damage that can be caused by freezing temperatures and heavy snow. Claims are said to shoot up at this time of year, and for those that find their cover is not adequate – or who have no cover in place – the financial implications can be huge.

Frozen pipes and broker down boilers are amongst the more common problems that can affect households at this time of the year. If homeowners do not have any insurance, do not have the right cover, or do not have an adequate level of cover, in place then getting these problems sorted out could be extremely costly. However, with the right cover homeowners can simply arrange for repairs to be carried out through their insurance provider.

Another thing that winter brings with it is the dark nights, making it easier for thieves to gain entry to houses without being spotted. Homeowners should therefore also ensure that they have the right level of cover in place to protect them in the event of damage and theft caused by burglars.

With Christmas coming up many thieves will be on the lookout for expensive gifts that households have received or have bought to give to others. Make sure that if you have valuable gifts in the home you are adequately insured, as otherwise you may not be able to claim for them.

Tags: officials, traffic issues, chaos, right cover, pipes, cold weather, United Kingdom

Mortgage deals upset by credit crunch

Mortgage applications are being hit by the global credit crunch, new research has warned.

The chaos in global financial markets caused by the US sub-prime lending crisis is now unquestionably affecting ordinary people in the UK.

Brokers are reporting that 17 per cent of decisions in principle by mortgage lenders are not being honoured after the event, due to the rapidly changing conditions.

And nearly a quarter (23 per cent) of all mortgage offers being made have been affected by the credit crunch, brokers have told GE Money Home Lending.

Duncan Berry, Sales Director, GE Money Home Lending, warned: “During these challenging times there will inevitably be changes to ranges with shorter notice periods, but communication is key and lenders should endeavour to give brokers reasonable notice to alterations in product ranges and changes to pipeline dates.”

Nevertheless, brokers themselves were found to be remarkably tolerant of lenders’ behaviour.

59 per cent said that it was acceptable for deals to be withdrawn or changed at short notice.

Tags: Yield spread premium, crisis, event, Financial economics, product ranges, brokers reasonable notice, Financial crisis of 2007–2009, chaos