Sainsbury’s Home Insurance Warns People Against ‘Dumming Down’ Their Policies

 Over the last year or so, we have all been feeling the burden of the global financial crisis and in times of financial hardship it is not uncommon for people to cut back in certain areas to make ends meet.

However, Sainsbury’s Finance is warning against the current trend of cutting back on Home Insurance and other important areas as this might lead to greater financial hardship in the future.

Whilst it might seem desirable to cut out the cost of home insurance altogether, particularly if a person has not had to make a claim for a long time, the costs of putting things right should something occur without cover outweighs any such benefits.

The leading insurance provider cites figures that demonstrate how many people have cancelled or failed to renew they home insurance policy over the last year. According to the figures from ABI, 1 in 4 people fall into this category.

Ben Tyte, the Home Insurance Manager for Sainsbury’s Finance warns of the false economy associated with insurance cancellation, “In the current economic environment many people are looking to dumb down on their insurance or do away with it completely in order to save money.

“However, this is a false economy because if disaster strikes they could be left in ruin.  Rather than risk inadequate cover, they should shop around for better deals – it is possible to find quality cover at a competitive price – and find a policy that does not penalise them for paying on a monthly basis.”

As a direct result of this Sainsbury’s Home Insurance is offering a no claims discount of 30%, unlimited buildings cover and the chance to spread out the costs over a year without cost.

Recently, Sainsbury’s released figures pointing out that whilst the amounts of burglaries have been on the rise, the number of people making claims on their insurance has in fact dropped, leading some to conclude that it demonstrates that some people are underinsured. It means that whilst everyone should take effort to ensure they have home insurance, they should also check that their current policy adequately covers their needs.

Source: Sainsbury’s Finance Press Release Nov 2009

CompareTheMarket.com Warns Policy Holders to Ensure Their Garden is Covered

There have been many stories in the news recently that directly tie in to home insurance and the consequences of not being covered. Whilst the recession has inevitably left some people cutting back on their home cover, the recent floods across the United Kingdom have highlighted the importance of home insurance once more. 

But whilst it is easy to dwell on our homes within the walls of the house, how many people are covered in case of damage to the garden?

According to research carried out by comparethemarket.com, Britons that fail to find adequate insurance for their gardens may incur significant financial hardship, with the total cost for people in this country amounting to £10 billion.

So home owners are urged to make sure that items within the garden are covered by their household insurance policies. It could make the difference in claiming back on damage to items such as barbeques, plants and event furniture.

However, it is not just flooding that can cause damage to gardens with comparethemarket.com warning home owners to be vigilant against vandals as well. This amounts to over 600,000 garden owners that might have been targeted, with a further 1.2 million affected by robberies.

“It’s important to remember that home insurance policies can cover garden plants and furniture as well,” says Jeremy Moll of comprethemarket.com, “Although the value attached to vandalism and theft is high, we know UK weather conditions can also wreak havoc on our homes. There are steps people can take to save themselves money.”

The recessions is often cited as the reason many people are not covered in the modern day and the comparison website addresses this as well,

“Even with money tight, it’s not worth taking any risks and not having your home totally covered.”

So whilst ensuring that people take particular steps to protect their garden (such as securing or storing vulnerable items, taking apart large objects, covering immovable plants, fitting locks on gates and fitting lights, and making sure fence ownership is known), people should take extra steps to make sure their garden is properly protected.

Source: Compare The Market Press Release

Only a 2.6% Rise Since 2007

Home owners going without home insurance to cut the costs of everyday life could breathe a sigh of relief this year as Sainsbury’s Finance releases figures showing only a small rise in the cost of running the average house since 2007.

The cost of running the household can hit unwanted highs and coupled with the ongoing recession it has meant that some people are cutting back on items such as home insurance. However, industry figures warn that such action could end up costing people more in the long run.

Sainsbury’s Home Insurance reveals that the average cost of running the home is around £11,455 annually according to sources such as the Office of National Statistics. This is around £220 a week and a rise of only 2.60% since 2007. Sainsbury’s cites the reduction of mortgage payments as the reason for the lower rise as other areas of the house have actually risen in costs.

One area that has risen is the cost of gas bills in the UK, which have risen on average by around 26.68% since 2007 from £651 to £812 (estimated), with electricity at £14.69%. This is according to figures from Ofgem.

So home owners should think twice about cancelling or failing to take out insurance policies, with a range of risks still facing the average home. Sainsbury’s has recently highlighted the reduction of home insurance claims in 2009, which compared against the increase in burglaries suggests a reduction in the number of people with home insurance. The insurer estimates that 946,000 people have cancelled or reduced their home insurance cover from 2008 to 2009, with 700,000 citing their financial situation.

“We spend thousands of pounds each year running our homes and have often invested even more money on furnishings and decorating,” said Joanne Mallon, Home Insurance Manager for Sainsbury’s Finance, “Yet, so many people are putting this investment at risk by cutting back on their home insurance.

“Good quality home insurance doesn’t have to be expensive.”

As ever, customers are encouraged to shop around for the best deal they can find in home insurance (as is the case with any form of insurance). It could make the difference between no insurance and finding a policy at the right price and an adequate level of protection.

Source: Sainsbury’s Finance Press Release July 2009