Consumers warned over belongings in care homes

Consumers have been warned to be careful about belongings that are in care homes, as they may not be automatically insured against theft, loss, and damage. Read more

Tags: protection, damage, Insurance, report, care homes, expensive jewellery, addition, college accommodation

Merger between Co-op and Britannia

According to recent reports there is to be a merger between the Britannia Building Society and Co-operative Financial Services. The merger will take place in the event that a new law that allows mutuals to merge is given the go ahead in March. Read more

Tags: damage, coop, mutuals, redundancies, Owing, new law, substance

Do tenants need home insurance?

Home insurance is a vital form of protective cover for homeowners, as it provides valuable protection against the financial losses related to damage to the home, or damage, theft, or loss of belongings. Read more

Tags: tenant, damage, Insurance, theft, possessions, fire, home, cover, rented

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

Insurers count costs of floods

The floods in the West Country last month, along with the Central England floods in June, have cumulatively been termed the worst in 60 years in the UK.

Now, as the waters have receded, Britain’s insurers have been counting the costs.

Aviva, owner of Norwich Union and the biggest insurance company in the country, announced last week that it faced £340 million-worth of claims, split evenly between the two deluges.

Royal Bank of Scotland, the UK’s second-largest home insurer said that the floods would cost them around £250 million.

Insurance premiums for extreme weather conditions are likely to go up nationwide, with those in areas which have previously flooded likely to be most severely affected.

Last month, the Association of British Insurers (ABI) was forced to revise its estimates upwards for the recent floods to a grand total of £2.5 billion.

According to Risk Management Solutions, the damage caused by the floods was much smaller than that wreaked by those in 1947, which would cost “between £4.5 billion and £6 billion” if repeated today.

Tags: Central England, West Country, insurers, damage, bank of scotland, June, home insurance, economics

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: travel, premium, holiday, uk, caravan, claim, accident, car

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: cost, companies, flood, claim, british, consumers, car

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: water, cost, claim, Insurance, weather, damage, home, cover, flood

Take action against anti-social behaviour

Britons are being encouraged to take measures to counter the threat of anti-social behaviour in communities around the country.

Research by insurer Zurich estimates that £1 billion of damage has been caused to properties and possessions in the last five years, with 30 million adults having been affected by such incidents.

The study reveals that a fifth of respondents have reported cases of graffiti on their properties.

Over one in ten Britons also note that front doors or walls have been vandalised, with abandoned cars also being identified as problematic.

Zurich says that two-fifths of people say they feel powerless at the hands of vandals, while over a quarter say it has impacted upon their quality of life.

Martin Hall, head of personal lines underwriting at Zurich Insurance, said: “To help minimise the impact of anti-social behaviour, we believe there are some simple changes that homeowners can make to reduce the chances of falling victim to vandals.”

Installing an effective home and car alarm system might be a good idea as well as making sure garden gates and shed doors are securely locked.

Tags: Financial Services Authority, damage, fifth, action, front doors, Martin Hall, 1 billion, threat

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: claim, theft, Insurance, garden, damage

Insurance policyholders could be paying out million to compensate for fraud

According to industry professionals holders of UK insurance policies could collectively be paying out millions upon million of pounds simply to compensate for fraud levels losses.

Experts claim that policyholders could be shelling out four million pounds everyday simply to make up for the financial losses that are caused by fraudulent claims that are made to insurance companies.

The data comes from the Association of British Insurers, and the ABI states that over one and a half billion pounds is paid out by honest policyholder each year to make up for the cost of fraudulent claims made by millions of others. Around five million people have admitted to making a fraudulent insurance claim in the past. This adds an average of forty pounds a year to the cost of cover according to the Association of British Insurers.

The insurance fraud relates to different types of claims. Some people cheat their insurance company by making a valid claim but inflating the amount that they are claiming for. Others actually take out insurance cover for the sole purpose of making a fraudulent claim so that they can cash in their cover – this is known as ‘planned’ insurance fraud.

Around £8M had to be paid out in extra premiums by honest policyholders last year to make up for claims where the amount had been inflated by the claimant. Around fifty percent of fraudulent claims relate to home and contents insurance cover.

One spokesperson from the ABI stated: “These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves.”

Tom Smith
23rd May 2007

More Information:

• What is Insurance?

Tags: damage, abi, fraudulent, Insurance, claims

Insurers expect surge in DIY claims

The May Day Bank Holiday is expected to have led to a surge in insurance claims as the UK went DIY crazy.

Bank Holidays are traditionally a time when homeowners decide to carry out some work on their house and this one has been no different.

Lloyds TSB Insurance says that it is expecting the number of calls it receives to surge by around 60 per cent in the coming days.

The firm has revealed that it saw calls rise by 56 per cent following the 2006 May Day Bank Holiday and it predicts that accidental damage claims will also rise.

“May Day Bank Holiday can spell disaster for DIYers,” explained Phil Loney, managing director at Lloyds TSB Insurance.

“We’re urging anyone who’s getting out a paintbrush, drill or stepladder to be extremely careful. Unfortunately, sometimes accidents do happen and it’s then that having the right insurance cover can prove invaluable.”

The firm says that their have been some quite interesting claims made in recent years. Among them is a toddler who wanted to follow his dad’s DIY lead and painted a newly-laid carpet.

One man accidentally drilled through a gas pipe and caused a leak, while another crashed through his ceiling as he tried to repair some floorboards.

Tags: toddler, Lloyds TSB Insurance, Insurance, time, director, accidental damage claims

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: damage, cancellation, employee, policy, cover, travel, holiday, accident, overseas

Kent quake leads to increased insurance claims

Following the earthquake that struck Kent on Saturday April 28th, Lloyds TSB Insurance has reported a significant rise in the number of claims being received.

The quake registered 4.3 on the Richter scale and caused damage to a number of homes and properties in the region.

Lloyds says that it has been contacted by many of its 2,000 customers in the area, with many reporting collapsed chimneys, damaged walls, driveways and pathways.

However, the firm says that it is also actively contacting its customers in the affected region to see if they need to make a claim on their home insurance.

“As always in situations like this, time is of the essence,” explained Phil Loney, managing director at Lloyds TSB Insurance. “We have made sure that all our staff are fully prepared to handle the increase in claims following the earthquake.

“However, we’d urge anyone who has been affected to follow our advice and give us a call as soon as possible.”

Those who need to make a claim are also being encouraged to check their policies to see what exactly is covered.

Emergency repairs should be carried out as soon as possible and receipts should be kept so that a claim can be made later, however, it is vital that the insurer is contacted first as they may wish to inspect the damage first.

Tags: Saturday, increase, emergency repairs, April, pathways, damage, Lloyd's of London

Uninsured Loss Recovery

Amazingly, at any given time, one in five drivers in the UK will be driving without adequate car insurance should they have an accident. Probably more worryingly, if you drive regularly in the UK, is the statistic that at all times five percent of cars on the roads in the UK have no insurance whatsoever! Add to that the fact that, when asked, over half of those who drive in the UK admitted that, given the chance, they would not stop and give their name and address if they hit another road vehicle, preferring instead just to drive off (a habit known as ‘road running’), and you start to wonder just what you would do if you were unlucky enough to be involved in a road accident involving another vehicle. Read more

Tags: cost, damage, uninsured losses, Amazingly, United Kingdom, scenario, uninsured loss protection, adequate car insurance

Protect home ahead of severe weather

Homeowners are being warned that they should protect their home from the elements as the UK endures a period of severe weather.

Insurance firm Saga says residents must take precautions in order to avoid having to fork out for weather related damaged.

Particular emphasis is being put on encouraging people to check the outside of their homes ahead of any more storms that may hit the country.

Saga is urging homeowners to ensure snow is cleared as quickly as possible, to avoid leaks and damp, while loose putty in windows can cause problems with allowing water to get inside the house.

In addition, people are encouraged to keep a torch and batteries handy in case of a power cut, while doors should also be kept closed in order to retain heat.

Flooding is another major problem which can have a devastating effect on a home. In some parts of the UK it is advisable to take out insurance against flood damage.

It is possible to find out if you live in an area liable to be flooded by calling the Environment Agency’s Floodline.

Saga has produced a free guide, called Prepare Your Home for Bad Weather, aimed at helping homeowners during the winter months.

Tags: flooding, major problem, damage, addition, prepare

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: thief, fire, damage, in, valuables