Home Owners Should Ensure that they are Adequately Covered
Burglaries in domestic properties rose by 2.8% from the beginning of April to the end of June 2009 compared to the same period the year before, according to figures from the Home Office released last month.
The same period in 2008 saw 65,200 reported burglaries, with this figure rising to 67,000 this year, prompting Sainsbury’s Home Insurance to warn home owners to make sure they are properly insured.
The leading insurance provider revealed that the amount of claims made on home insurance policies has dropped this year, which could highlight the problem according to some people, who point out that it reveals that people might be underinsured. Sainsbury’s reveal that the drop in the amounts of claims made during the reported period was 13%.
Theft of some sort corresponds to 15% of claims made to Sainsbury’s Home Insurance, which means that members of the public are urged to check their policies and ensure that they are covered. They should also read the small print of any policy they are considering taking out so that they will not be left out of pocket if something should occur.
Sainsbury’s also suggest a correspondence between the rise in burglaries and the ongoing recession, with their Home Insurance Manager Ben Tyte commenting on the issue: “A rise in burglaries may not be a surprise during a recession but what is alarming is the decrease in theft-related claims over the same period which we fear may indicate that fewer people have adequate home contents cover in place.
“A significant proportion of all home insurance claims relate to theft, and we would urge homeowners to make sure their home security is up to scratch and that they have adequate home contents cover.”
In many cases, when people are feeling financial strain, insurance policies might be the first to come, but during a recession when everyone is feeling the pinch it leaves people particularly vulnerable to theft. It means that in the long run, getting rid of insurance might not save money at all.
“If you are not insured, becoming a burglary victim could severely hit your pocket,” Tyte adds.
Source: Sainsbury’s Finance Press Release Nov 2009