First time buyers could benefit if banks were protected with insurance

For many first time buyers in the UK the dream of homeownership is one that has slipped from their grasp completely, with lenders either demanding huge deposits that first time buyers simply don’t have or refusing to offer a mortgage loan at all. Many first time buyers have been frozen out of the market by cautious banks who do not want to take on the risk of defaults with a high loan to value loan.

However, one major banking group has said that the number of loans granted to first time buyers with high loan to value ratios could increase hugely if insurance companies would offer banks cover that would protect them against defaults. The claim was made by officials at Lloyds Banking Group, who said that the number of first time buyers could double if this sort of insurance cover was made available.

An official from the Council of Mortgage Lenders, Michael Coogan, said recently that he had previously urged the housing minister, Grant Shapps, to look at making improvements by encouraging a ‘more active mortgage insurance market’ which would provide protection to lenders and make them more able to extend low deposit mortgage borrowing for first time buyers. The cover would be mortgage indemnity insurance and would allow the borrower to claim back part of the loss if a person defaults, is repossessed, and then the property is sold for less than the amount owed on it.

One official from Lloyds TSB said: “There’s been a lot of conversation recently about mortgage indemnity and whether it’s a way to manage the transference of risk. You could be missing an opportunity to double the first-time buyer market.”

Tags: mortgage, lloyds, claim, tsb, property, value loan, lloyds tsb

Insurance fraud costing millions

According to a recent report insurance fraud in the UK is costing the industry tens of millions of pounds a year, with fake insurance claims becoming more and more prevalent, particularly in the current financial climate. The cost of investigating, repairing, and even paying out on fraudulent claims has resulted in a surge in costs for the insurance sector, and unfortunately these costs are then being passed on to the honest consumer.

It is thought that insurance fraud is costing the industry around £800 million a year, and officials from the Association of British Insurers have said that the most common type of fraud is in relation to home insurance. Figures indicate that in the UK around 170 homeowners file a false insurance claim every day, showing just how the value of fraudulent claims has soared to such a high level.

Whilst the insurance industry has become far more stringent with regards to running checks on claims that are made, particularly if there is something that does not seem to gel, many of these false claims still slip through the net, often because there is no way of proving that the claimant is not telling the truth. This level of fraud is costing not only the insurance industry a fortune, but also honest policyholders who have to pay more for their cover in order to cover the losses that are resulting from fraudulent claims.

An official from the Association of British Insurers said: ‘Insurance cheats do not prosper – they can expect to get caught, face problems getting future insurance and risk getting a criminal record. The majority of customers are honest and rightly object to subsidising the cheats. Insurance fraud adds an extra £44 to the average UK household’s annual insurance bill. This is why 2011 will see insurers intensify their war against the cheats, to protect their honest customers.’ 

Tags: honest customers, homeowners, claim, financial climate, uk, level, net, recent report insurance fraud

Norwich residents urged to ensure home insurance up to date

Residents in the Norwich area of the UK are being urged by officials to make sure that their home insurance is up to date and adequate. The warning comes after several break-ins in the area, which took place at the end of May and the beginning of June.

Whilst most people are well aware of the importance of having home insurance in place many forget to get their policies renewed or fail to ensure that the policy is amended to provide adequate coverage. This can cause big problems in the event of a break in, as the homeowner may find that he or she is unable to make a claim because of lack of coverage.

Residents in the area are being warned to check both their buildings and contents insurance to make sure that it is all up to date and provides adequate coverage. Officials are now stressing the importance of having home insurance policies in place for residents in Norwich, particularly given the spate of break ins that has been seen over recent weeks.

Police are still appealing for information with regards to the break ins, and in the meantime are warning residents in the area to be on their guard and do as much to protect themselves and their homes as they can.

Consumers that are looking for affordable home insurance coverage are able to choose from a range of options these days, and it is therefore possible to get a low cost policy that provides adequate protection. Police have confirmed that a number of high value gadgets and cash were taken in the recent break-ins, so consumers could save themselves a fortune in the cost of having to buy replacement simply by ensuring that they have insurance cover in place.

Tags: norwich, police, home insurance, protection, insurance cover

How younger drivers can save money on car insurance

For younger drivers the cost of insuring a car can be high at the best of times, but in the current financial and economic climate, when money is tight for everyone including younger consumers, many may be hoping more than ever to try and save money on the cost of this expensive insurance cover. Read more

Tags: climate, younger drivers, consumers, Driving test, young drivers, claim, car insurance, vehicle

Increase in jobless figures

According to a recent report there was in increase in the number of jobless people in the UK towards the end of last year, and the rise in the number of unemployed is expected to continue this year. Read more

Tags: Labor, stability, variety, increase, unemployment

Non-smokers save 50% on life insurance

With annual non-smoking day arriving in March, consumers give themselves an opportunity to kick their habit and make savings on their life insurance, claim financial experts.

According to Lifesearch, premiums for life insurance and critical illness cover can be reduced by as much as 50 per cent if a person does not smoke.

Matt Morris, policy adviser at Lifesearch, said that ‘do you smoke?’ is one of the first questions that an insurer will ask a potential new client, and that a non-smoker has to be someone who has quit their habit for 12 months.

“A cheaper premium is not certain, as it also depends on age and health, but there is a very good chance that the premium will fall,” he said.

The research showed that a 30-year-old non smoker could save up to £1,850 over a term.

Meanwhile, the company said that the value mothers bring to a family is often under-appreciated and they should be looking into protecting themselves and their finances with insurance cover.

Tags: savings, financial experts, value, value mothers, Types of insurance

Parents should invest in fund for their children

Parents should consider their child’s future by investing their money into a deposit-based Child Trust Fund (CTF) claim financial experts.

Fair Investment Company suggested the savings option as an alternative to buying presents and gifts as figures from MoneyExpert predicts that relatives have given children in the UK £2.4 billion this Christmas.

James Caldwell, Fair Investment director, said: “Deposit-based Child Trust Funds could be a good way of investing money that might otherwise be frittered away.”

“Your children are likely to thank you when they hit 18 and find they have a substantial nest-egg waiting for them,” he adds.

According to the body, all children born on or after September 30th, 2002, and in receipt of child benefit are eligible for a CTF and £1,200 can be paid into the account tax-free each year.

The Fair Investment Company has recommended that consumers should ensure their home contents are covered by insurance after figures from MoneyExpert revealed that £384 is the average spend on presents at Christmas.

Tags: company, James Caldwell, GBP, deposit-based child trust, Gift, CTF, home, claim

Forgotten savings claimed by thousands

Following the government’s call to urge consumers to reclaim forgotten savings earlier this year, a recent report has shown that over ten thousand people reclaimed their lost savings over the summer months, and it is thought that many more will continue to do so over the coming weeks.

Consumers have used the British Banking Association’s reclaim facility in order to claim back money that has been left in dormant accounts and forgotten about.

Earlier in the year the government stated that any money that had been left in dormant accounts for fifteen years or more would be used to improve youth and community facilities if it was not claimed. As a result of this thousands of people put in their claims over the space of three months in order to get back their money, although the government did also state that the money could be reclaimed at any time and there was no deadline by which the money had to be reclaimed.

The British Banker’s Association stated that there would most likely be another flood of claims after legislation relating to claims, known as the Unclaimed Assets Bill, was mentioned in the Queen’s speech next month. Over two hundred thousand people have tried to claim money from their dormant accounts over the past year according to figures. Consumers have been able to do this through the BBA as well as directly through the bank or building society in question.

Paul Chisnall, executive director of the BBA stated: ‘We had stories of Gordon Brown stealing money in the press and on TV, which led to a huge increase in volume. That could well repeat. There may be a collective targeting mentality as a result of the legislation and we’re in a state of readiness. As banks are more active on this, that will also generate more interest. What we’re trying to tell people is – it’s your money; there has never been a better time to claim it.’

Tom Smith
10th November 2007

Tags: bank, savings, lost, claim, individuals, accounts, forgotton

Parents urged to insure kids’ belongings

Parents in the UK are being urged to insure the belongings of their children, as they head off to school and college armed with everything from their text books and pencils to their mobile phones and games consoles.

Children these days, particularly secondary school and college students, carry a range of valuable items with them, and the cost of replacement if the items get accidentally damaged, or are lost or stolen, can be extortionate.

According to recent research the value of items that the average secondary school student now carried around is about £250. Parents of secondary school and college kids are therefore being advised to make sure that their children’s more expensive belongings, such as hand held consoles and mobile phones, are insured to avoid the financial implications of loss, damage, or theft.

Research shows that around 20% of secondary school students carry a hand held games console, and around three in five have a mobile phone that they carry with them. Additional cover may be needed for items such as ipods, MP2 players, and even musical instruments, which can prove to be very costly to replace if they are accidentally damaged or stolen. Sports equipment also needs to be covered wherever possible, as this can also prove costly to replace. Parents are urged to contact their insurance companies and ask for the items to be covered under personal possessions.

There are a number of insurance companies that can offer this type of cover, and parents are advised to shop around to make sure that they get affordable cover that offers competitive prices without compromising on the level of cover provided.

Tom Smith
17th October 2007

Tags: cover, claim, lost, personal, valuable, kids

Bank charge test case may be dropped

According to a recent report the Office of Fair Trading is considering dropping the test case over bank charges, which was planned for next year.

The test case was designed to make a final determination over bank charges following months of controversy and rows between banks and consumers. The battle started after campaigners and regulators branded the charges, applied for exceeding overdraft limits, bounding cheques, and returned direct debits, unlawful and unfair.

Officials from the Office of Fair Trading have confirmed that there is a chance that the test case will be dropped, but this will only happen if it is in the best interests of the consumer.

Officials stated that they may consider dropping the test case if banks decide to cut their charges to a level that makes them fair to consumers. Lloyds TSB has already cut its charges, but many experts state that it has not cut them enough.

One OFT official stated: “If we do our own financial analysis, and they come in with a number that is lower than our analysis would suggest is an unfair charge, there is no need for the court case to go forward. We will be looking out for what is the best outcome for the consumer.”

However, the banks are arguing that their bank charges have nothing to do with the OFT, and that officials have no power over their bank charges. The OFT is due to review charges to come up with a figure that it believes is fair.

If the test case does go ahead, many experts think that free banking could come to an end in the UK and that banks will start charging monthly fees for having a current account to recoup losses from bank charges.

Tom Smith
16th October 2007

Tags: bank, drop, fair, legal, test, case, fees, charges, court

Benefit from low cost home insurance cover from Sainsbury’s

Supermarket giant Sainsbury’s recently announced changes to its credit cards that meant consumers would be able to enjoy longer interest free periods on purchases in addition to a low life of balance transfer interest rate, as well as other benefits.

The supermarket giant has now announced that it has some good news for homeowners that want to enjoy the peace of mind and security of having comprehensive home insurance cover in place without having to pay over the odds on this type of cover.

Sainsbury’s has announced a special deal that will be available for consumers that wish to purchase both buildings and contents insurance cover as a bundle package. These consumers will be able to get twelve months of cover for the cost of just nine months, saving them 25% on the cost of their premiums right away.

Furthermore, consumers that make the purchase online will be able to save a further 10% on the cost of their cover, which means that some consumers could save a whopping 35% on the cost of their cover for a year.

The offer is open to consumers that take out cover before the 27th November, and could attract many customers who are taking out cover for the first time or are due to renew their cover. As a special bonus consumers that take out this cover before 27th November will also enjoy being in with a chance to earn one million Nectar points. The cover includes protection against accidental damage, and customers are able to pay conveniently and easily by direct debit.

Officials from the company state that although insurance premiums on home and contents cover has risen recently, particularly after the flooding problems that hit the country in June, there are still affordable policies and deals available.

Tom Smith
9th October 2007

Tags: contents, flooding, claim, supermarket, buildings, Insurance, protection, financial

Homeowners urged to prepare for winter

With Britain’s wettest ever summer confirming that people are no longer safe from “extreme weather” at any time of the year, Defaqto has urged homeowners to check that their buildings and contents policies offer adequate levels of cover.

The independent financial research company warned policy holders to pay particular attention of exclusions incorporated into their buildings and contents policies, particularly those which might concern storm damage or flooding.

Although storm and flood damage is usually standard in most contents policies, they do not all include “contents in the open” such as garden furniture, Defaqto warned, revealing also that nearly all buildings policies exclude cover for weather damage to fences, gates and hedges.

Mel Gray, senior researcher at Defaqto, said: “A lightning strike could set your property on fire, resulting in your home and all your possessions being destroyed.

“So it’s essential that people check that the sums insured under their buildings and contents policies are adequate to cover such a catastrophic event.”

Last week, Lloyds TSB Insurance urged people to act quickly if they need to make a claim for damaged properties, following the tornadoes that wreaked havoc in Hampshire, Warwickshire, Bedfordshire and Derbyshire.

Tags: lloyds tsb, claim, Product Issues, home insurance, policy, event, tornadoes, Insurance urged people

Pet insurance could save you a fortune

According to a major UK pet insurance company having some form of pet insurance in place could help some pet owners to save a fortune on the cost of caring for their beloved pets over the course of their lifetime.

Britain is known to be a nation of animal lovers, and most pet owners want the best for their pets, particularly when it comes to their health. However, those with no form of insurance cover in place could face crippling costs or a heartbreaking decision if their pet is injured or falls ill and required surgery or expensive treatment.

According to the UK pet insurance specialists Petplan, a dog, with a typical lifespan of twelve years, could cost around £14,750 over its lifetime, and a cat, with a typical lifespan of sixteen years, could cost around £14,230. The insurance company goes on to state that the rising cost of veterinary consultations and treatments is why many decide to take out pet insurance cover, and for many this acts as a real life saver – literally in some cases – when their pets need surgery or treatments following accidents, injuries, and illness.

Figures indicate that there are many more claims made on pet insurance each year in the UK compared to other types of insurance cover. Around 34% of pet insurance policyholders make a claim each year compared with around 9% of other types of insurance policyholders. However, it is important for pet owners to ensure that the cover that they take out is comprehensive and will provide them with the necessary protection for their pet.

Premiums can vary based upon the type of pet, its health and medical history, and its age, so consumers are urged to shop around and check the cost of cover as well as the level of protection provided.

Tom Smith
27th September 2007

Related links:

• Insurance : Do You Care More About Your Pet Than Yourself?
• How Do Insurance Companies Work Out Premiums?

Tags: vet, accident, pet, cat, surgery, animal, petplan, claim

Travel insurance a must for holidaymakers

Travel insurance is an absolute must when taking holiday time overseas, specialists have claimed.

InsureandGo, an online broker, claim that trips abroad without the necessary cover are incredibly risky and should be avoided.

Strongly urging all travellers to invest in some sort of cover, Perry Wilson, a spokesperson for InsureandGo, said: “Travel insurance should not be considered a luxury – it is essential for anyone going on holiday.

“We know people lead busy lives and sometimes things are left to the last minute and that’s why we have tried to make travel insurance as easy to buy as possible.”

He added: “Travelling without insurance simply isn’t worth the risk and we hope there is no excuse for not getting round to it.”

Meanwhile Sainsbury’s Bank, also concerned by holidaymakers shunning overseas cover, claimed that the situation was worsened by the strong surge in last minute deals.

Tags: claim, Insurance, overseas cover, sainsburys, travel insurance, Types of insurance, finance

PMI customers can enjoy hefty discounts by staying fit

A recent report has shown that there has been a rise in the number of people taking out private medical insurance this year compared to last year.

The rise of around 1.5% is thought to be because many PMI providers are offering huge discounts to those that are prepared to try and stay fit and healthy, which means that many consumers can enjoy far lower premiums. In the past the level of interest in this type of cover had fallen due to increased costs on premiums.

Some PMI providers are now offering discounts of up to 75% to consumers that have no serious health problems, do not smoke, go to the gym, and lead a healthy lifestyle, as these factors all reduce the risk of claims. In addition, many PMI providers are now also offering no claims discounts to consumers, much in the same way as car insurance companies do, and in some cases these discounts can be transferred if the consumers switches provider.

In some cases insurance companies are allowing consumers to pay larger excesses, which helps to keep the cost of premiums down further. One industry official stated: ‘We found many people were prepared to pay a much higher excess in return for lower monthly premiums. This is especially true of the elderly, who often have more savings in place than younger policyholders. It gives customers more options.’

In addition to leading healthier lifestyles and paying higher excesses, consumers that want to enjoy the protection of private medical insurance should also shop around for the most competitive deals, as this can also help to ensure that the cost of cover is kept down. One official stated: ‘Savings can be made by switching insurer to a more competitive policy, even for the over-60s. The advantage of many of the policies offered by smaller companies is that premiums do not rise so sharply. This is because they have fewer claims.’

Tom Smith
20th September 2007

Tags: Insurance, claim, fit, medical, out, work, disease, train, healthy, policy

Flooding costs to affect insurance premiums

The UK has seen some of the worst rain and floods in years over the past few weeks, and for many this has resulted in severe damage to their property and huge insurance claims.

Many insurance companies have been inundated with claims following the flood damage, and millions of pounds worth of claims have had to be processed and paid out. Insurance companies have stated that the level of claims coming in has been high and the payouts have made a big dent.

The recent flooding is said to have been the worst in the UK for around sixty years, with many households devastated by the damage caused. A number of leading insurance companies are now stating that they will have to push the cost of premiums up because of the level of claims that have had to be paid out as a result of the flood damage. Both contents and buildings insurance cover is now expected to rise as a result of the situation.

One of the leading insurance companies in the UK, Norwich Union, has confirmed that its premiums will be going up. From next week those taking out cover with the insurance giant can expect to pay around 10% more than previously. All customers will be affected by this price increase and not just those that were hit by flood damage and had to therefore make a claim on their policies.

One insurance company official stated: “People are spending more on home improvements. When things go wrong they’ve got flat-screen televisions and expensive flooring. So, when the do damage, it’s costing us more.”

An official from Direct Line insurance stated: “We do recognise that premiums will rise, and that goes for all RBS brands.”

Tom Smith
19th September 2007

Tags: payments, Insurance, increase, cover, premiums, flood, claim, cost

Students forgetting to take out insurance cover

It has become traditional for many students in the UK to take a year out after graduating from university to travel the world or get some work experience abroad before settling down to handle ‘real life’.

For many students this is a hugely exciting prospect, and is their first taste of freedom and independence. However, some get so carried away with their plans for taking time out abroad, that they forget about the basics – the vital protection of travel insurance cover.

Travel insurance is vital for those going abroad for any length of time, and even more so for students that are intending to spend long periods of time abroad. Without this the student could really run into problems when it comes to anything from lost and damaged belongings to medical and emergency treatment. Experts are now urging parents to ensure that their children have taken out an adequate travel insurance policy before their head off on their travels.

One official stated: ‘Most parents wouldn’t dream of allowing their child to drive a car without insurance. Yet as many as one in four gap year travellers sets off without travel insurance. Parents could be putting their home at risk because if their child suffers an illness or accident and needs hospital treatment or repatriation, the costs can run into tens of thousands of pounds.’

One student explained how travel insurance cover had helped her when she ran into problems and her belongings were taken: ‘After such a bad experience, I wouldn’t now dream of going away without travel insurance. I have also fallen off a moped in Thailand, which required hospital treatment. Thankfully, my insurance covered me.’

Tom Smith
13th September 2007

Tags: medical, travel, holiday, Insurance, accident, students, cover, vacation, claim

Beware the bullying banks

The row over bank charges has been dominating the financial news in the UK over recent months, with thousands of customers attempting to reclaims charges for exceeding the overdraft limit on their bank accounts after UK regulators deemed the fees as unfair and unlawful.

However, although many people have managed to reclaim their money back, going back up to six years, it has not been a smooth or easy process for many, and banks have been using a range of underhand tactics to try and discourage consumers from reclaiming these fees.

A recent study that was conducted by This is Money has shown the extent of the bullying tactics that banks have used to try and stop people from reclaiming their bank charges. According to the study banks have breaching industry guidelines on a frequent basis by threatening thousands of customers with account closure in the event that they make a claim for their charges. Many vulnerable customers are being targeted by some of the leading banks, and these tactics are pushing many into avoiding claiming their charges for fear of losing banking facilities.

The report showed that over one in eight customers that have tried to reclaim their bank charged have been threatened with closure of their accounts, which is in direct breach of industry guidelines in accordance with the Banking Code. A spokesman from the Banking Code Standards Board stated: ‘Banks are allowed to close down accounts for commercial reasons. But they must also treat fairly any customers who are experiencing financial difficulties.’

Experts state that consumers should not let themselves be bullied in this way, and that any threats such as this should be directed to the Financial Ombudsman Service.

Tom Smith
13th September 2007

Tags: stron, fees, bully, companies, claim, interest, bank, court, charges

School holidays could mean more insurance claims

With the long stretch that is known as the school summer holidays, many parents are trying to think of ways to keep their children amused for the six week break, which any parent knows is not always easy.

Many children spend a great deal of time in the house over the school summer break, and particularly in the case of younger kids this can often lead to boredom and mischief. There is also an increased risk of accidents occurring when the kids are in the house all day every day, and according to a leading insurer this tends to result in an increased number of insurance claims.

According to officials from Halifax Home Insurance 20% of all claims for accidental damage are made during the months of July and August, when the kids are off school, and are often running amok in the house. These two summer months see claims for accident damage rocket by around 23% according to the insurance company, with claims for accidents ranging from smashed windows and damaged carpets to broken equipment and more.

Officials from the Halifax have been urging parents to make sure that they have accident damage as part of their home insurance policy, and also to ensure that they have an adequate level of cover in case of costly accidents. Without this type of cover parents could find that the summer holidays turn into a far more expensive time than they ever imagined, as they will have to foot the bill for accidental damage themselves.

One Halifax Insurance spokesperson stated: “It’s particularly important at this time of year for parents to check their home insurance policies and make sure they are covered for accidental damage to the home and contents. This summer’s heavy rains show little sign of abating, meaning children may well find themselves cooped up indoors for hours on end when they want to be outside playing, so they may get restless and find mischievous ways to amuse themselves.”

Tom Smith
13th September 2007

Tags: home, holidays, damage, school, Insurance, claim, accidents, cover

The importance of honesty for insurance customers

Many consumers in the UK take out life insurance policies each year, and taking out this type of policy usually involves providing the insurance company with a variety of details about your health and lifestyle.

The cost of this type of insurance cover can vary depending on the company that you go through, as well as on the details that you provide to the insurance company with regards to your health and lifestyle. It is thought that a certain percentage of shoppers may miss out or change vital information in a bid to get cheaper premiums, but experts warn that this could end up being a waste of money as the information that they provide – or fail to provide – could invalidate their cover in the event that a claim needs to be made.

One independent financial adviser has warned that consumers must ensure that they provide up to date information that is accurate and honest when they are applying for life insurance to ensure that their premiums are not wasted altogether.

This includes providing accurate information on their lifestyle, such as their smoking and drinking habits and also any dangerous pastimes or hobbies that they may have. He added that if a claim is made and the insurance company discovers that important information was withheld, or that the applicant was not truthful, then the company is not obliged to make a payout despite receipt of insurance premiums.

He said: “All life insurance policies are underwritten at outset. So if you don’t partake in, say, climbing or mountaineering when you apply for your policy, but then subsequently you do, then that’s fine, nothing wrong with that. But whatever the situation is when you apply for your policy, you must be totally honest, otherwise you may invalidate your claim. The insurance company won’t pay your claim if they found out you lied to them when you filled the form in. People have got to be totally honest when they fill their applications in.”

Tom Smith
28th August 2007

Tags: company, honesty, car, travel, cover, accident, Insurance, claim, life

Have you lost track of your account?

The government and the British Banker’s Association are working together to try and deal with the issue of dormant bank accounts, where banks are unable to trace the owners of account, which have been left dormant for years with no transactions being made on them.

Accounts that have not bee touched for three years or more are generally classed as dormant, and both the government and the BBA have been looking at ways to try and deal with this issue.

The priority is to try and reunite these dormant bank accounts with the account holders, as even though the account is classed as dormant the money in it is still the account holders. Many accounts have just a few pounds in them, and there are also many dating back ten years or more when many people were opening a number of accounts with £100 deposit in order to cash in with a windfall in the event that the building society became a bank or there was some sort of merger.

So far a number of accountholders have been successfully reunited with their lost accounts. One BBA spokesperson stated: ‘Already this year, we’ve processed 6,000 claims. This compares with 7,000 for the whole of last year.’ Those that think that they have a dormant account are being encouraged to contact the British Bankers Association for further information and to make a claim to the account either by phone or via the BBA website, which is www.bba.org.uk

The government is also looking into options for the use of money from accounts that are not claimed by any consumer. A commission was set up 18 months ago to deal with this, and it is likely that monies from unclaimed accounts will be used towards a number of worthy causes.

Tom Smith
27th August 2007

Tags: personal, claim, current, accounts, bank, savings, costs, uk, interest, charges

Amex in strong travel insurance recommendation

Holidaymakers must take out travel insurance cover to feel safe during breaks, American Express said today.

Amex advised those who shopped around for travel cover – some 52 per cent, according to their own research – to concentrate on premium levels rather than simply the price.

Director at Amex Richard Mason said: “While holidaymakers might think nothing will happen to them while they are away, travel insurance is vital for claiming on cancellations, lost cash, public liability and providing emergency medical treatment.

“It gives you added peace of mind should anything go wrong.”

The credit card company’s insurance service also said that tourists must make sure that they keep within drink-drive limits if any alcohol-related claims are to be successful.

Attention was also drawn to the fact that insurers would closely monitor the circumstances of injuries received by claimants after alcohol was consumed.

Marketing manager Joanne Field said: “This is the acid test to determine whether an insurer will pay a claim for an accident or injury when the medical staff has advised that its causes have been alcohol related.”

Tags: tourists, claim, emergency, Director at Amex, amex, cancellations, Richard Mason

Is your caravan insured for your holiday?

If you are planning to take a caravanning holiday this year, as many Brits tend to do, it is important to ensure that you have adequate insurance cover in place, state experts.

According to many industry professionals many consumers forget to insure their caravan and contents before heading off on their holidays, and although not compulsory as with car insurance, not having caravan insurance in place could cost some holiday makers a fortune in the event of unforeseen circumstances or accidents.

According to recent figures just over 25% of caravan owners have taken out adequate insurance cover, and with around two million Brits likely to be heading off on caravanning holidays over the next couple of months this reflects a serious deficit in the number of consumers that have protection for their caravans. A good caravan can be a costly investment, and without the benefit of insurance cover can end up costing the owners a fortune.

Many people with lower value caravans fail to take out cover because they may feel that it is not worth it. Reports suggest that the same goes for those that have caravans but rarely use them. However, insurance experts are warning caravan owners of the serious financial implications that can stem from lack of adequate insurance on their caravan, no matter what the age of the caravan or now much it is used.

One industry expert stated: “We were alarmed to see from our research how many people were not taking out insurance. Not only can some of the top of the range caravans set you back well over £20,000 if they are stolen, the damage you can cause to third parties can be enormous.”

Tom Smith
1st August 2007

Tags: damage, travel, car, holiday, Insurance, countryside, claim, accident

Middle classes fiddle insurance claims

Although many of us are led to believe that fraudulent activities are usually conducted by those from lower income families, a recent report has suggested that many illegal activities in this field are actually committed by middle classes, particularly fraud such as inflated insurance claims.

The results from the survey suggested that a high number of middle class policyholders inflated insurance claims in order to improve their homes or simply to get back at the insurance companies for having to pay high premiums.

The survey was conducting using nearly 2000 respondents from across England and Wales. The report was compiled by Professor Susanne Karstedt and Dr Stephen Farrall of Keele University. Although other types of ‘white collar crime’ were also highlighted in the report, one of the significant types of crime that middle classes admitted to was fiddling insurance claims.

One official stated: ‘Politicians from across the political spectrum regularly claim that most crime is committed by a hard core of offenders, largely drawn from low-income groups. This research demonstrates that volume crime is far more widespread, with the middle class being responsible for a wide range of illegal activities. The reasons for this are complex, and relate to the fundamental social changes in British society over the past 30 years.’

One professor involved with the study added: ‘Contempt for the law is as widespread in the centre of society as it is assumed to be rampant at the margins and among specific marginal groups. Anti-social behaviour by the few is mirrored by anti-civil behaviour by the many. Neither greed nor need can explain why respectable citizens cheat on insurance claims or in second-hand sales, and do not hesitate to discuss their exploits with friends in pubs.’

Tom Smith
15th July 2007

Tags: home, class, car, survey, claim, Insurance, house

Flood claims could hit £1 billion

According to industry professionals the cost of flood related insurance claims in the UK could top the £1 billion marks, after thousands of people were left to deal with the horrific damage caused by the torrential rain and storms over the past week or so.

Many areas of the UK have been particularly hard hit by the weather, with consumers suffering the misery of seeing their homes and belongings wrecked as a result of serious flooding. With more bad weather to come it is thought that the estimated cost of claims could still keep on rising.

The average claim for flood related damage in the UK is likely to be between £15,000 and £20,000 according to analysts, and with thousands of people submitting claims for such high amount, insurance companies are going to have to deal with huge payouts.

Ultimately, this is likely to push up the cost of insurance premiums for the future state some experts, which means that all consumers with home insurance will end up suffering financially.

Another factor that claimants should take into account apart from the rise in premiums is that the time taken to process their claims is likely to be far longer than normal simply due to the sheer level of claims currently pouring into insurance offices.

The Association of British Insurers has been offering advice on its website for those affected by flood damage to enable them to make their claim as quickly as possible. One ABI official stated: ‘If you have been affected by flooding, contact your insurance company. Their priority is to deal with all claims as quickly as possible.’

Each year there are, on average, just over 13,500 claims to insurance companies as a result of flooding. However, last week there were nearly 9,000 claims made in one day alone according to report estimations.

Tom Smith
13th July 2007

Tags: damage, cost, flood, companies, car, Insurance

Insurance claims expected to flood due to flooding

The recent wet weather in Britain has devastated many homeowners all around the country, causing millions of pounds worth of damage collectively and causing untold stress and inconvenience.

According to officials the level of insurance claims is set to soar as homeowners assess the level of damage that the flooding has caused. This June has been reported as the wettest on record, and many areas throughout the country have suffered huge levels of damage.

A spokesman from the Association of British Insurers: ‘These events highlight just how important insurance protection is. If you have been affected by flooding, contact your insurance company. Their priority is to deal with all claims as quickly as possible.’

The Association of British Insurers has called upon the government to increase the funding for its defenses against flooding.

In the meantime, many of those without insurance cover or with inadequate levels of cover will be suffering the financial costs of the flooding, as they will have to foot the bill for the damages caused by the weather themselves, which could costs thousands upon thousands of pounds.

Even those with insurance cover have to now go through the laborious task of assessing the damage and making a claim with their insurer, which could take time to sort out given the number of claims that are likely to be flooding in.

More unpredictable weather is expected over the next few weeks, and this means that the number of claims being made could rise, which could mean further costs to insurance companies and a higher level of claims from customers. 

Tom Smith
10th July 2007

Tags: claim, cost, water, damage, home

Charge Claimants Can Ask For Strike Outs

The campaign for people to reclaim excessive charges from banks has been hit by banks “playing the game” and stringing customers’ claims along until they are taken to court. More often than not, the banks then don’t turn up to court. Read more

Tags: abuse, out, system, charges, legal, fees, lloyds

Consumers outraged by judge’s bank charge decision

A number of consumers in the UK are outraged at the decision of a judge in Hull who plans to dismiss their court cases against a number of banks.

Around twenty customers who have taken their banks to court over reclaiming bank charges have been told that the cases are likely to be dismissed as a result of the recent case won by Lloyds TSB. Lloyds was the first bank to win a case, when the Birmingham judge ruled in the banks favour rather than in favour of the plaintiff, Kevin Berwick, who was seeking over £2500.

Despite officials from the Financial Ombudsman Service stating that the Lloyds TSB case is not a definitive one, the judge from Hull, Ian Besford, has cited this case in his decision to dismiss the cases against Lloyds TSB, Barclays, and HSBC. The cases are due to be heard on July 4th. A number of the consumers concerned have contacted the BBC with regards to the issue.

A spokesperson from Consumer Action Group stated: ‘Kevin Berwick lost in his case in Birmingham because he didn’t supply enough evidence. This judge in Hull seems to be striking out the claims before he has even seen the detailed evidence of each claimant.’

However, the judge has stated that he plans to dismiss the cases because there appears to be ‘no reasonable prospect of success in the light of the recent decision’ regarding the Lloyds TSB case.

This is the first judge to have referred to the Birmingham Lloyds TSB case in his decision. A court official from Hull stated: ‘It is entirely up to each judge to decide for himself if the Birmingham judgement is an interpretation of the law he agrees with.’

Tom Smith
12th June 2007

Tags: charges, claim, fees, judge, bank, costs, ruling, penalties

Consider financial ombudsman over bank charges

In the ongoing disputes relating to bank charges Lloyds TSB recently became the first bank to win a court case against a customer that was trying to reclaim bank charges that had been imposed for exceeding the overdraft limit on the account, and for returned cheques and direct debits.

And is seems that this unprecedented case has started to put some consumers off from trying to reclaim charges from their banks. However, experts advise that there is another route available.

This is Money has advised consumers that if they don’t feel confident about taking their bank to court of reclaiming bank charged they can simply go through the Financial Ombudsman Service. This is a free service, so consumers will have nothing to lose by taking their complaints to the ombudsman. And if, at the end of the day, the consumer does not agree with the financial ombudsman’s decision he or she can still take the case to court.

This is Money also warns that this cannot be done the other way around. So if a consumer takes the bank to court, and the judge rules in favour of the bank, the consumer cannot then take the complaint to the financial ombudsman because the judge’s ruling has to be the final one. So, anyone having trouble getting bank charges back from their bank should consider complaining to the FOS before taking the case to court.

Even banks are now using the Lloyds RSB case to try and make consumers feel as though this is a definitive decision, but this is not the case.

One FOS spokesman stated: ‘We are seeing letters from banks suggesting the Birmingham case is definitive. This is usually happening at local branch level. Often when we raise it at a senior level, head office agrees that the letters are wrong and stop any more going out.’

Tom Smith
10th June 2007

Tags: case, fines, charges, claim, ruling, ombudsman

Check your garden is protected against theft

Although the British summertime is a pleasant period for green fingered people and garden lovers, it is also a time that can increase the risk of theft from outside your actual house – from your back garden.

Many people are looking forward to spending time sprucing up their gardens, adding plants, and enjoying barbeques with families, and the popularity of garden programmes on television has seen more and more people invest in their gardens, often spending huge amounts of money on their pride and joy.

However, as summertime approaches insurers are warning consumers to check that they have adequate cover to protect the items on their gardens. Summertime thieves will target everything from expensive plants and shrubs to barbeques, lawnmowers, decorative ornaments, furniture, tools, and just about anything else that could be of value in your garden. And without adequate cover this could mean financial losses as well as a ruined garden.

According to the Halifax the average claim for garden based theft last year was around £400. Claims tripled between March and August last year according to the Halifax, and there were total claims of around £1 million last year relating to garden based theft. Some of the items may be covered under the regular home insurance cover, but many do not cover plants and therefore additional cover may be required.

Consumers should contact their home insurance providers to see what sort of garden items and equipment are already covered, and can then arrange additional cover if required. Cover on garden items can vary from one insurance provider to another, and terms and conditions for making a claim can also vary, so this is something else that consumers will need to check.

Tom Smith
7th June 2007

Tags: damage, Insurance, halifax, policy, home, lawns

Banks warned by judge over unreasonable behaviour

A judge in the UK has issued a warning to banks in relation to unreasonable behaviour in cases where consumers try to claim back charges that have been deemed unlawful and unfair.

Many consumers in the UK have made claims for bank charges going back up to six years, and although in all cases but one the claims have been successful a number of banks have been acting in a manner deemed unreasonable, using retaliatory measured such as account closures to get back at the consumer.

And another tactic being used by some banks is the pretence that they will be defending claims in court, when in actual fact they have no intention of doing this at all.

It is this tactic that is being objected to by the High Court judge, David Mackie, who claims that the banks are wasting court time and resources with this pretence. He further stated that he was looking into awarding damages against the banks if they continued to do this in instances where a consumer has filed a claim in court.

The London Mercantile Court has had hundreds of these bank charge cases referred through lower courts this year, and the hope is that at some point one of the cases will be heard, producing a test decision.

Judge Mackie stated: “If the banks had won, many fewer customers would have sued. If the banks had lost, the claims would have been much easier to sort out than they are now.”

With banks deciding to settle the claim at the last minute before a case is heard, the likelihood of a test decision is a slim one.

Judge Mackie added: “On the face of things each case raises serious issues which the court would permit to proceed to trial. But this is fantasy because, at least for the moment, we all know that there will be no trial.”

Tom Smith
30th May 2007

Tags: lose, fees, court, judge, challenge

Bank charge firms to be investigated

On the back of current investigations that are being carried out into the charges applied to customers’ accounts by banks in the UK by regulatory bodies, a further investigation will now be carried out into the various firms that have sprung up claiming to be able to help consumers to recover these charges – for a fee.

Regulators will now be looking into and scrutinizing these firms amidst fears that many consumers may be wasting their money on paying unnecessary fees for a task that they can carry out themselves free of charge, other than paying for copy statements.

UK regulators have been looking into unfair and unlawful charges that have been charged to customers’ accounts by banks for some months, and as a result of this many consumers have managed to claim back charges and fees going back up to six years, which in some cases has amounted to thousands. However, in light of the increasing number of people attempting to claim back fees from their banks a number of companies have sprung up with offers of assistance in exchange for fees.

These companies will now be investigated by the Ministry of Justice, and amongst the practices that will be looked into by the ministry is cold calling, where company representatives phone up consumers to try and talk them into letting them help claim back charges. However, consumers can just as easily do this themselves for the cost of a duplicate statement, and without having to pay any further charges.

In a recent case Lloyds Bank won a case where a man had tried to make a claim for his charges, and this was the first case to be won by a bank in relation to these charges. In other cases banks have failed to justify the charges, and consumers have been able to reclaim them. 

Tom Smith
24th May 2007

Tags: case, charges, claim, regulators, unfair

Over two billion still to be claimed in bank charges

According to figures released by the price comparison website Uswitch, over two billion pounds worth of bank charges are yet to be claimed by consumers that have been hit with hefty and unlawful penalty fees over the past six years.

The topic of bank charges has exploded over recent months, with regulators claiming that the charges imposed for exceeding an overdraft limit and for returned cheques and direct debits are unlawful and unfair. As a result many people have claimed back these charges going back up to six years, but Uswitch officials claim that around £2.12 billion has still yet to be claimed.

The figures from Uswitch suggest that around four billion pounds in charges have been netted by banks that have applied these charges to the accounts of around nineteen million consumers in the UK. So far, over half of that amount has not been reclaimed by consumers.

So many people are now being encouraged to reclaim their fees from banks that there are a number of financial services available that can help consumers to try and reclaim their fees if they are unsure as to what they need to do. However, the clock is ticking, as an impending decision from UK regulators with regards to what is construed as a fair fee may reduce the amount that claimants can file for.

Many consumers have already threatened to take their banks to court for not repaying the fees, and in most cases the banks have paid up on a last minute basis, with no banks actually having gone to court to justify the amount that they charge.

However, it seems that many consumers are frightened of the consequences of making a claim, with a number of banks having threatened to close consumers’ accounts if they try and reclaim their fees.

Tom Smith
10th May 2007

Tags: threats, accounts, bank, close, claim, reclaim

Bank accused of wasting court’s time

One of the leading UK banks has been accused of wasting time by a judge, and has been ordered to pay the court costs of a woman that sued the bank after trying to reclaim unfair and unlawful charges that the bank had applied to her account for going overdrawn, returned cheques, and unpaid direct debits.

Lloyds TSB will have to pay court costs of £85.41 after the Bristol County Court judge, Andrew Kearney, accused the bank of ‘acting unreasonably’.

The plaintiff, Vivien Lloyd, had tried to reclaim fees that amounted to £655, but wrote to the judge after the bank spent a year wasting time before offering to refund the fees. The judge stated that the bank had no intention of defending its charges in court, and therefore accused the bank of wasting time and ordered it to pay the court costs incurred by the plaintiff.

The plaintiff had initially written to Lloyds TSB in March 2006 to reclaim her charges, many of which had been accrued by her son, Gary.

She stated: “The terrible stress it put me through – it was driving me mad. I’m absolutely ecstatic – it was our living money, our food money.”

She added that the bank had continued to refuse the refund until earlier this year, with just one week to go before the court hearing, at which point Lloyds offered her a full refund of charges. 

A spokesperson for the bank stated:  “We are surprised by this judgement as we firmly believe we have the right to lodge a defense in any legal action brought against us. We have been unable to trace any notification from the court about this application for a further payment of £85 and so did not have an opportunity to challenge it before it was made.”

Tom Smith
4th May 2007

Tags: charges, claim, year, lloyds, bank, unfair

Travel Insurance – Keep Your Holiday Protected!

Holidays aren’t exactly cheap these days. Gone are the years when you could pitch up at the English seaside and spend a couple of weeks with the kids paddling in a storm tossed grey sea at Scarborough or Blackpool. These days of sunshine abroad and quality children’s entertainments come at a price. Today, there’s no better reason to insure your holiday. Read more

Tags: policy, damage, foreign, accident, claim, overseas, cover, Insurance, employee, travel

Motor Insurance – What Is A No Claims Bonus?

It’s a term you hear bounded about often in the world of motor insurance, but it is also one of the least understood: the ‘no claims bonus‘. So, what is a ‘no claims bonus’ and how can it help me?

The basics

As you can probably work out, a no claims bonus is ‘gift’ given to a policyholder if they do not claim on their insurance during the period of the insurance. In effect what this means is that if you reinsure your motor car with the same car insurance provider, you’ll be given a good conduct discount on what would otherwise have been a full premium insurance policy.

The misconception

There are two fundamental flaws with the no claims bonus: one, the understanding that you are going to reinsure with the same car insurance provider. In effect, what the insurance provider is saying to you is “don’t look elsewhere for your car insurance, because we are giving you a discount for being a good driver”. Fine; however, this works on the assumption that you cannot find cheaper motor insurance elsewhere – such as on the internet. Unfortunately, this assumption can often be wrong, and in most cases motorists are reluctant to change motor car insurance provider because they have fallen into the trap of believing they cannot get a better deal elsewhere.

Second, there is a fundamental understanding that your renewal policy with a no claims bonus will be cheaper than your previous policy. Actually, considering you have made no claim on your insurance, not an unreasonable concept to arrive at. However, not always the case – although you may be given a no claims bonus, the premium is set by the amount of claims that were made, which you have no say in as you didn’t make a claim! So, it is very possible to have a good conduct no claims bonus and still be paying higher premiums in year two than you were in year one!

The 5-year limitation

Naturally with every year that you didn’t make a claim against your motor insurance provider you would expect to get an additional no claims bonus. In reality this is not the case. Most motor insurance policy providers limit the period of no claims bonuses to 5 years of no claims. Thereafter, not making a claim is not helping to reduce your insurance premium.

As such, although you can surely make substantial savings with a no claims bonus, don’t let this lull you into thinking you cannot find motor insurance cheaper elsewhere and check out some of the online car insurance quotes to find out if you can get a cheaper car insurance quote than you are currently getting – even with your no claims bonus. You never know, you might actually be pleasantly surprised.

Tags: claims bonus, motor insurance policy, fine, no claims bonus, claim, Social Issues, no claims discount, Insurance

How to Save Money on Home Insurance

As a homeowner, if you are proactive in your shopping around, you can save on your yearly premium. There is no rule that states as a homeowner that you must wait till the end of your policy year to renew! By shopping around, if a cheaper price is found for the same (if not better) policy coverage, there is always an option to switch insurance companies as long as a claim hasn’t been made. Read more

Tags: internet brokers, Social Issues, best quote, buildings insurance, mortgage, home insurance savings, home insurance, claim

How does your age affect your premium?

As many UK motorists are aware there are a range of factors which come into play when companies decide the rate premium you pay. The first step of this process, at the application stage is to take all your details – which the company will do with a paper based form or over the internet. Read more

Tags: system, paper, risk, claim, Disaster Accident, service, young person car insurance

Content insurance claims due to rocket in January

Barclays Home Insurance experts have warned that the level and cost of contents insurance claims in January is likely to rocket compared to claims made over the rest of the year, following a similar trend to recent years. Barclays state that this is due to the increase in thefts and burglaries in homes over the festive period, where thieves target homes because of potential rich pickings in the way of gifts, as well as the increased likelihood of homes being empty due to homeowners being out at parties or visiting relations.

According to Barclays Insurance the number of claims during the month of January can rise by around fourteen percent, and based on last year’s figures the cost of claims could shoot up again this year. In January 2006 there was a rise of fifteen hundred pounds compared to the amount claimed throughout the rest of 2005. Barclays experts state that consumers need to take care to minimize the chances of theft.

Barclays also advise customers to ensure that they have adequate cover in place in order to protect themselves during this higher risk period.

One official stated: “The least you can do to make sure your Christmas doesn’t get spoilt by burglars, is to ensure you have sufficient cover in place as part of your home insurance policy. While your insurance won’t be able to compensate you for the distress a burglary can cause, it will allow you to replace all of your stolen items, so that your Christmas doesn’t have to end in a bitter disappointment.”

Consumers are also advised not to leave present on show, and to ensure that there is someone to look after the home in the event that they have to go out for a long period or are away visiting relations.

The Barclays spokesperson added: “Christmas should be the time of fun and happiness but it has unfortunately also become a time of year where more thefts and burglaries are occurring. Nowadays many presents are high in value but also light and portable, such as laptops, jewellery, gadgets like iPods and BlackBerrys or the latest games console – making them ideal targets for burglars. ”

Tags: burglary, Insurance, theft, barclays, steal, home, christmas, contents

Life insurance costs can rocket if you are overweight or a smoker

Although it has long since been known that life and health insurance companies charge higher premiums to consumers that are considered a higher risk, such as those that are very overweight or those that smoke, recent data has shown just what a dramatic difference smoking and excess weight can have when it comes to increases in insurance premiums, with many insurance companies charging over fifty percent more on policies to smokers and the very overweight than on policies to non-smokers and those not overweight.

The data suggests that insurance companies are really cracking down when it comes to what they consider are high risk customers, protecting themselves against increased risk of financial losses through charging a lot more on the cost of the premiums. These insurance companies look at high risk factors such as obesity and smoking when working out a policy, and those that come under the category of obese or smokers are seen to be a higher risk because they are more likely to make a claim according to insurance companies.

A life insurance manager at Sainsbury’s stated: “Health risks associated with smoking can have a big effect on life cover costs. It is vital for those that have kicked the habit to review their policies.” However, a number of pro-smoking organizations have raised concerns about the way that insurers automatically charge more to smokers than non-smokers, stating that the risk of a smoker under forty dying is no higher than that of a non-smoker.

A recent comparison study was carried out and this showed that on average smokers were charged around fifty six percent more on these insurance policies than non-smokers. The study was carried out through sending applications from two men of the same age to a number of the UK’s top insurance companies, and seeing what the price difference was based on one being a smoker and the other a non-smoker.

Tags: Insurance, life, accident, cover, premium, claim

Consumers Advised To Get Home Insurance Before Christmas Arrives

With an alarming percentage of homeowners having inadequate or even no contents insurance cover to protect their worldly goods and their homes, experts are advising consumers to ensure that they get themselves sorted out with protective cover before Christmas comes around. With reports suggesting that claims on contents insurance tend to rocket over the Christmas period, consumers are being advised to ensure that they do not get caught short at a time when it seems that accidents and burglaries are most likely to occur.

According to research carried out by Zurich, a whopping ten percent of UK homeowners have no contents cover at all, which means that they are not protected in the events of theft, loss, or damage. A further twenty percent do not have adequate contents insurance based on the items that they have in their homes. The reports also suggested that fifty percent of those with contents insurance had no accidental damage cover on their policies, reducing the protection they received from having cover.

Data provided by Barclays Insurance suggested that the festive period was the time when accidental damage in the home was most likely to occur, and statistics showed that the rise in contents insurance claims tended to shoot up over this period. This is also the time of year when many homes are left empty, as people go to stay with friends and family, as well as the time of year when there are many valuables in homes, in the form of gifts and cash. These factors combined could also mean an increased risk of burglaries.

Data showed that there was a rise of over forty percent in home insurance claims after the Christmas period in 2005 compared to claims made the month before. One Barclays spokesperson stated: “Our data shows that during the Christmas party season, people are particularly likely to incur accidental damage incidents in their homes. The cost of replacing items or cleaning carpets or furniture can quickly add up. It is therefore important to add accidental damage cover to your home insurance policy.”

Tags: Insurance, winter, prepare, christmas, home

Is travel insurance more important than life cover?

Most Brits are well aware of the complications that can arise without the protection of life insurance cover. Nobody knows what lies around the corner, and an accident, sudden illness, or unexpected event could change everything in one fell swoop for our loved ones. Although nobody likes to dwell on the prospect of death it seems that many Brits are simply burying their heads in the sand when it comes to providing their loved ones with protection and peace of mind through life insurance cover, and a survey has revealed that an alarming percentage of Britons do not insure their lives.

A recent survey was carried out by Bright Grey, and a sample group of two thousand Brits was used in the survey in order to determine average figures relating to insurance cover. The results from the survey indicated that Britons considered life insurance cover to be the most important form of protective insurance, with thirty eight percent of those surveyed stating that they felt that it was most important to insure their lives. Home contents insurance and mortgage insurance cover were ranked next in line when it came to importance by the group surveyed.

However, despite the fact that the survey revealed the majority think that life insurance cover is the most important cover to have, it seems that Brits are more interested in protecting their travel than they are their lives. The most popular insurance cover, according to the report statistics, was home content cover, with seventy four percent of people having this type of protection. Hot on its heels was travel insurance cover, with sixty one percent taking out this type of policy.

According to the results of the survey life insurance cover came in third, with only fifty three percent enjoying the protection of this type of cover. Mortgage protection figures were also alarmingly low, with only twenty three percent having this type of cover. Bright Grey products director, Roger Edwards, stated: “This is a real worry. Less than a quarter of people protect their mortgage – over three times more people insure their home contents. And although people seem to know how important life insurance can be, many simply aren’t taking out cover.”

Tags: policy, travel, claim, premium, protection, life, emergency, accident, Insurance, cover

Brits Seriously Undervaluing the Cost of Their Home Contents

New research published by Legal & General indicates that most Brits are seriously undervaluing the cost of replacing their home contents when it comes to filing a home contents insurance policy. 

The average UK homeowner currently values the possession in their home to worth a mere £14,300, whereas the actual cost of replacing most items found in an average UK home would likely cost more than £38,000.  Alone, the average UK living room now contains electrical and other goods that make the value of replacing these exceed £10,500.

With research undertaken recently by the Halifax Home Insurance showing that burglaries and house theft levels in the UK increasing by as much as 8%. During the winter months, UK home insurance providers are not only cautioning homeowners to take extra precautions to ensure the safety of their homes but are also asking policyholders to take a careful look around their home and make sure they are reflecting a true value to the value of the contents.

Moreover, with the average UK homeowner unlikely to amend their home contents insurance dramatically year-on-year, a big question remains whether UK households take into account items purchased for their homes in the previous calendar year when renewing their home contents insurance.  Given that new electronic items can be expensive, UK home contents insurance policyholders should also be taking a close look at whether or not the threshold value of home contents is being reached and whether or not new expensive items need to be reported individually when renewing a home contents insurance policy. 

Special attention should also be given to any new jewellery items you may have purchased in the last year, as these are also unlikely to be covered under any general home contents insurance policy unless they have been specifically identified.  In this regard, it is generally advised that any UK household photograph new items purchased so that they can keep a log of all of the items in their home.  Photographing home contents is also much easier when it comes to making any claim on your UK home contents insurance policy.

Reflecting this general opinion among home contents insurance providers in the UK, Andy Dawson, operations director at Legal & General, commented, “From the survey findings it would appear that insurance cover loss of property from the home could be over £20,000 below the level it should be.  We would suggest that everyone take the research findings as a prompt to review their home contents and check the insurance cover they have in place”.

Tags: burglary, costs, break, belongings, contents