Shopper panic buying due to weather

The past week has seen the weather in the UK take a nasty turn, and what started off as a cold snap is now being described as a big freeze, with roads and pavements across the UK covered in snow and ice, and conditions becoming increasingly dangerous for both pedestrians and drivers across the country. Read more

Tags: Grit, weather, supermarket, Asda, cat

Bill for losses from floods could be more than £100 million

It has been estimated that the bill for the losses that were suffered in the recent and devastating floods in Cumbria could come to more than £100 million, according to a recent report. Hundred and homes and businesses were affected after flood defences failed to provide protection when rivers burst their banks in Cumbria, Dumfries, and Southern Scotland, causing devastating levels of damage and huge losses. Read more

Tags: flood, finance, environment, weather, Association of British Insurers, Insurance, Disaster_Accident, insurance providers, scotland

Failing to take out insurance puts homes at risk

Failing to take out building insurance can put your home at “real risk”, according to one expert.

Nationwide said that consumers avoided building and home contents insurance due to the supposed ‘complexity’ involved in the contracts, but stated that it is not complicated at all.

Charlotte Sjoberg, campaigns manager for Nationwide, said the need for insurance had not necessarily increased since the spate of bad weather.

“Whether you are in a flood risk area or not, it is really important to protect your home against unexpected events. You really don’t know what could happen,” she said.

She also said that is it important for homeowners to have the right amount of insurance cover and to be aware that home contents and building insurance protect consumers in different ways.

Research conducted by the building society has found that one in five of home owners do not have buildings insurance, and that one in four do not know what is included in their policy.

Furthermore, 14 per cent of those surveyed had also failed to take out home contents insurance.

Tags: building and home contents insurance, Title insurance in the United States, flood risk, insurance policy, real risk, Financial services, weather, manager

Home insurance market remains competitive

Prices in the home insurance market are still competitive despite predictions that flood damage claims earlier this year would inflate premiums, according to the British Insurance Brokers’ Association (BIBA).

Graeme Trugdill, technical services manager at the organisation, commented: “Home insurance is still ultra-competitive and you see during any advert break on TV, companies saying we will be your cheapest home insurance option. It is still very competitive.”

Although many thought the flooding would hit home insurance consumers hard, he insists there are still some good deals out there.

He advises those looking for cover to seek advice from an independent source to compare the best ones available.

According to a BBC Panorama programme, in the three months up to July 23rd this year, rainfall was over double the average for that time of year.

Furthermore, it reported that 60,000 homes were hit by the summer’s floods, with the environment agency stating that the chance of London’s flood barriers being overwhelmed by flood is currently at 0.05 per cent.

Tags: London's flood barriers, weather, flood, environment agency, cover, Business and Economy, Financial economics, British Insurance Brokers

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: consumers, companies, british, home, weather, claim, damage, 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: water, cover, Insurance, weather, damage, cost, home, flood, claim

Cold snap may cause chaos

If you have already put away your winter coat for the year you may find yourself caught short as the Met Office warns that a cold snap is fast approaching.

Freezing temperatures, wind and snow are expected and, aside from having to get our coats out again, we are being warned that our homes may suffer with the weather.

Halifax is warning that we may suffer damage to our homes as the temperature changes, particularly with burst water pipes causing problems.

The cold can lead to water inside exposed pipes freezing and expanding, leading to cracks which will leak water once the ice thaws.

“A sudden unseasonal drop in temperature can wreak havoc on people’s homes and gardens if they are unprepared for it,” warned Vicky Emmott from Halifax Home Insurance.

“Water from a burst pipe in a loft space can very quickly cause damage to plaster ceilings, walls, kitchen units, electrical wiring and decoration.”

We are being advised to get a home insurance policy so that we are covered in the event of a disaster and Ms Emmott also has some handy tips to prevent the worst happening in the first place.

She says that we should insulate any exposed pipes, ensure loft insulation is placed above water tanks and leave the loft open if going away.

Tags: place, Physics, weather, space, vicky, people's homes, year

Winter will see more claims

Homeowners are likely to make more insurance claims in the coming months as a result of the bad weather.

That is according to Lloyds TSB, which says it is expecting to see a 15 per cent increase in burst pipe claims during the first quarter of this year.

The insurance provider is highlighting the fact that something as seemingly minor as a burst pipe can prove to be both a major headache and a real financial burden.

Lloyds has revealed that the average claim for a burst pipe is around £2,500, while the most expensive the firm has ever seen was £156,000 for a particularly troublesome problem.

Homeowners are being warned to take action to help keep damage from a burst pipe to a minimum, with advice such as locating the stopcock, gas valve and ball valves, in case the worst happens.

Lloyds also advises people to leave their heating on a low heat if they are going away on holiday, as this will prevent pipes from freezing, while outdoor pipes should be well insulated during the winter months.

“So far this winter we’ve had relatively mild weather so many homeowners were caught unprepared for this cold snap,” said Lloyds TSB’s Phil Loney.

“A little bit of effort now could save you a lot of wasted time and stress caused by problems such as burst pipes or broken boilers.

“To give yourself peace of mind, make sure you have adequate home insurance that will cover you if the icy conditions do take their toll,” he added.

Residents are also advised to leave their insurance details with a trusted neighbour when travelling in case there is an incident while the house is empty.

Tags: peace of mind, tsb, Valve, homeowners, Insurance

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: damages, claim, weather, home, storm, christmas