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2010 is just around the corner and as ever many people will be looking for new insurance policies for their homes, whether they are updating their existing agreements, searching for new ones or moving home. read more »

Research Reveals Many Homeowners Do Not Have The Right Level of Insurance

When we are seeking insurance we will at some point need to estimate how much our household items are worth and whilst we can determine items such as televisions and freezers rather easily, it can be harder to come up with a total price for other areas.

Items such as DVD collections and a wardrobe of clothes can be harder to determine and so we must think of other ways to determine their worth. But this could mean that many people out there are underinsured when it comes to home insurance.

The home insurer LV= recently unveiled the results of the study carried out on their behalf by Opinium in September 2009, which reveals the true extent of the problem and particularly highlights the amount of people who are seriously undervaluing their clothes collection.

According to LV=, people on average tend to estimate their clothes at around £1,600 and £1,300 when it comes to jewellery and watches. However, the true values could be much higher, with experts at the insurance company estimating that the average female wardrobe could be worth as much as £7,000, with a further £2,000 added when factoring in jewellery and watches.

Men’s wardrobes are estimated to be worth slightly less than women’s, but at £5,000 this still comes in much higher than the amount for which is being insured.

It means that if a household is targeted by thieves, succumbs to flooding or is hit by fire or any of the other dangers facing the home, then people will be left seriously out of pocket when they try to replace lost or damaged items.

“When valuing their contents people just tend to think about expensive jewellery, electronics and items of furniture such as sofas, beds and dining tables and forget how much it would cost to replace their clothing, shoes and everyday jewellery should the worse happen,” said Emma Holyer of LV= Home Insurance.

She continued: “Although it’s a relatively small percentage of claims where we see an entire wardrobe’s contents destroyed if you are underinsured you could find that your insurer will reduce the amount they pay out to reflect the cover taken out.”

As a result, when it comes to valuing possessions in seeking insurance, it might be wise to consider the individual costs of items rather than simply thinking of one overall amount. It is also wise to be aware of the specification of the policy so that you are not caught out in the long run.

Source: LV= Press Release Oct 2009

Not Doing Enough to Secure Homes, says esure Home Insurance

It is a message that is regularly heard coming from insurers all over the world – make sure your home is properly secured and avoid taking unnecessary risks with your belongings.

Now esure Home Insurance is adding to the calls, claiming that homeowners are still taking too few steps to protect their properties. This includes homeowners failing to properly conceal their keys outside and failing to securely shut doors and windows.

With Sainsbury’s Finance recently reporting that burglaries and other types of theft are on the rise, the message, based on research carried out by the home insurance firm, comes at a particularly important time.

The results of their study found that as high of 42% of those asked admitted to leaving the house whilst failing to lock the back door, with a further 64% failing to shut windows in their absence.

Home Insurance companies expect homeowners to do everything they can to properly secure their homes and if they find that the owner is at fault following a burglary, they could decide not to pay out.

“Most burglars are looking for an easy target and leaving windows and doors unlocked is practically inviting them in,” said Mike Pickard, the Head of Risk and Underwrting of esure, “Homeowners should make sure their property is as secure as possible because if they can’t prove to their insurer that they took steps to keep their home and contents safe – then a claim may not be paid out.”

The Home Insurer is particularly concerned by the number of people hiding a front door key outside in the event of losing the original key or misplacing it when returning from a night out. 39% of those surveyed said that they hid it in the garden. esure urges people to choose hiding places that are sensible and if possible, avoid doing it at all (particularly as you could be spotted by a thief doing so).

They cite 7% of people who have been burgled as a direct result of someone finding the spare key hidden outside. Insurers are unlikely to pay out if a thief was easily able to find their way into a property.

Last month it was also reported by LV= that people are hiding to many important documents in the same place, so whilst personal belongings and property are being left at risk, people are also leaving themselves open to ID theft.

Sources: esure Press Release, Sainsbury’s Finance Press Release & LV= Press Release

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

Reports on the Weather Issues Facing the UK

Each year the UK faces extreme weather conditions that often lead to flooding and gale force winds and as Cumbria struggles to get back to its feet following the horrendous flooding it has seen over the last couple of weeks, MoneySupermaket.com and the BBC refer to insurance premiums during this time.

Flooding can cause considerable damage to the home; this much is a given, but both sources give indications as to the habits of insurers and those who have suffered at the hands of flooding and other weather-related damage.

In light of the recent floods in Cumbria, Dumfries and Galloway, Julie Owens of MoneySupermarket.com highlights the need for Home Insurance: “Unfortunately this sort of event serves as a reminder to those living in flood risk areas to make sure they are prepared for these eventualities and making sure they are fully insured is paramount.

“People living in ‘at risk’ areas should check the details of what their buildings and contents policies cover, as well as the limits and excesses on both. It pays to make sure that the quality of your insurance is high and you won’t be left out of pocket if you have to make a claim.”

She highlights that in recent years, insurance providers have improved the way in which they handle large scale flooding incidents like this. However, home owners, who may have to make claims on both contents and building insurance, should take extra steps to minimise damage, such as moving valuables upstairs and tying down garden appliances that could cause damage to the house.

“Your insurer will expect you to make attempts to minimise your claim”, she adds.

The BBC refers to a deal that was agreed upon between the government and the insurance industry that means that insurers will continue to insure homes at risk of flood. However, the real difficulty in this situation may be switching to a new insurance provider.

The average costs of flood damage to the home each year amounts from £20,000 to £40,000 according to the ABI, with these figures expected to rise with global temperatures. In the current situation in Cumbria, Dumfries and Galloway, the claims could exceed £100 million in total.

Source: MoneySupermarket.com Press Release Nov 2009 and BBC News