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News in Home Insurance
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Winter weather sends insurance claims soaring
Britain's cold snap at the end of 2011 has caused an increase in the amount of buildings insurance claims over the last year.
Research by MoneySupermarket.com revealed that weather related insurance claims grew by 56 per cent compared to the same period in 2010 with storms being the main cause for concern among homeowners.
The price comparison website found that over the course of the past year manmade accidents took the top spot for claims on home insurance but the unsettled weather towards the end of 2011 added to this figure.
Last December saw a plethora of storms engulfing the country with many people in Scotland being left without power as the likes of Argyll and Bute recorded winds of 80mph.
Julie Fisher, head of home insurance at MoneySupermarket, said: "With the storms of December 2011, coupled with the recent flooding we have seen across parts of the UK, homeowners need to be increasingly on the guard against potential damage to their property." More »
By Marianne Straker, Home Insurance - Wed 16 May 2012
Flood insurance guarantee moves a step closer
Peace of mind for those in flood-risk areas maybe just around the corner as the government and the insurance industry has moved a step closer to reaching an agreement on a protection guarantee.
Ministers are listening to proposals by the Association of British Insurers (ABI) which would see all homes in the "at-risk" areas covered but with a cap on annual premiums paid by the homeowner, the Guardian reports.
The government had announced in the March that a deal between itself and the British Property Federation to protect homes in the affected areas was not being renewed in June 2013, but the ABI has outlined proposals that are becoming more attractive to ministers.
A spokesman for the ABI told the newspaper: "The government is now engaged in constructive and serious discussions about this idea with us, and we are doing the maths to work out what the level of cap and amount of levy might be." More »
By Marianne Straker, Home Insurance - Wed 9 May 2012
Millions of Brits left exposed due to lack of home insurance
Millions of British homeowners are running the risk of incurring major property costs should the worst happen by not having any home insurance.
A survey by MoneySupermarket.com has found that 3.5 million Brits do not have adequate home cover, and with many areas in the UK being at risk of flooding, residents could be caught short if their home is damaged.
The price comparison site revealed that nearly 1.5 million only had contents insurance in place while 1.3 million have only taken out buildings cover. A further two per cent (650,000) had no protection in place at all.
Peter Harrison, insurance expert at MoneySupermarket, said: "Homeowners without adequate buildings and contents insurance are taking a huge risk by leaving their homes unprotected, and are potentially storing up a financial catastrophe in the event of a major incident which could even leave them homeless."
Despite Britain being classed as in a drought, the recent bad weather has seen localised flooding and the MeteoGroup has warned that there is "no end in sight" for the wet conditions. More »
By Marianne Straker, Home Insurance - Wed 9 May 2012
Recession causing 4m Brits to consider home insurance fraud
Britain's deepening economic crisis is forcing many Brits to make cutbacks across the board and research has shown that over four million have considered making fraudulent claims on their home.
MoneySupermarket.com found that one in ten UK homeowners would consider making false claims on their property in order make cost saving measures that benefiting them in the future.
The UK government announced last month that the country was once again in a recession following a second successive quarter where the economy shrank, meaning that consumers are tightening their belts to cope with rising costs and stagnating wages.
Officials at the price comparison site found that 780,000 people have already successfully defrauded their home insurance provider through false claims, but consumers are being warned that they risk being prosecuted and will be left uninsurable.
Peter Harrison, insurance expert at MoneySupermarket, said: "Insurance companies take fraud very seriously, no matter how big or small the amount being claimed for. If insurers are suspicious of a claim's validity it will be investigated with specialist detection processes and anti-fraud technology." More »
By Marianne Straker, Home Insurance - Fri 4 May 2012
Household bills causing more misery for Brits
UK consumers are tightening their belts once again as household bills continue to increase due to rising inflation.
Research by Santander has revealed that the average property bills have soared by 71 per cent over the past decade, double the speed in which inflation has grown within the UK, causing more misery for homeowners.
On top of this figure, the price of gas and electricity has tripled and doubled respectively in this same period and it has led many Brits to cut back on their spending just to afford the cost of living.
The survey found that 78 per cent of UK consumers had had to make life adjustments to compensate for rising household bills. More »
By Marianne Straker, Home Insurance - Wed 2 May 2012
Flash floods causing concern for homeowners
The recent torrential downpours are causing concern for those in flood endangered areas and homeowners are being urged to make sure their property is covered.
Despite the country being classed as in a "drought" many towns in Dorset and Devon are at risk with the River Severn in Tewkesbury close to bursting its banks. The Environment Agency has issued 21 flood warnings with the Midlands and the south-west at the biggest risk.
The bigger chance of flooding has led to insurers urging those in the endangered areas to take out protection should the worst happen to their property.
Confused.com has given homeowners a series of helpful advice on how to safeguard their house including putting sandbags around the property if they know a flood is coming and storing irreplaceable objects in a safe place among others.
Gareth Kloet, head of home insurance, said: "At this time of year when flash floods can easily happen, we want to make people aware of what they need to do to ensure that they are covered if the worst is to happen." More »
By Marianne Straker, Home Insurance - Wed 2 May 2012
Home insurance costs begin to fall
The weight on property owners is beginning lift as home insurance costs fell slightly following sustained increases, according to the AA.
In its latest British Insurance Premium Index the company revealed that premiums over the first quarter of 2012 including the average cost of annual protection policies on homes and contents had fallen.
However, there was an increase of 0.5 per cent for buildings cover costs while premiums for contents insurance fell by 1.7 per cent.
It follows a recent study by M&S Home Insurance which found that many Brits are turning to energy-efficient methods in a bid to reduce utility bills in their home and save money wherever they can.
The AA highlighted the lack of snowfall as a contributing factor to the decrease in protection prices but warned that many homeowners need to be wary of protecting against natural occurrences.
Simon Douglas, director of the company, said: "We escaped with a relatively mild winter which hasn't resulted in an avalanche of claims for damage caused by low temperatures and heavy snowfalls." More »
By Marianne Straker, Home Insurance - Wed 25 Apr 2012
Over a quarter of Brits hire domestic help
Britain was once a nation of domestic goddesses with the lady of the house staying at home to look after the children while the husband went to work.
However, in this modern society where both parents hold full-time jobs many have admitted to struggling to do all the household chores due to long hours at the office, with some even hiring domestic help to spruce up their home.
Research by LV has found that over a quarter (28 per cent) of UK homeowners pay a company to send a professional cleaner paying an average of £40 to do the chores they do not have time for.
Where it was once a luxury for only the very affluent LV found that 40 per cent of people that hired a cleaner had a household income of £28,000 or less.
John O'Roarke, managing director of LV home insurance, said: "Employing someone to help out in and around the home is no longer a luxury only afforded to the privileged few. With millions of people working longer hours, employing a helping hand is increasingly seen as a necessity." More »
By Marianne Straker, Home Insurance - Fri 20 Apr 2012
Homeowners put faith in neighbours to look out for their property
Protecting their home against intruders is the number one priority for many UK residents.
While some install CCTV cameras, one in four Brits believe that having trustworthy neighbours is the best form of security, according to the latest survey from the Association of British Insurers (ABI).
Research by Gocompare recently found that 38 per cent more UK residents joined up to Neighbourhood Watch schemes to keep improve the security of their street or estate.
However, the company found that many homeowners are overlooking the very basics of security measures around their property such as locking all doors and windows.
With 36 per cent of burglaries happening on the off-chance that a door has been left unlocked homeowners are being urged to become savvier.
Nick Starling, director of general insurance at the ABI, said: "While it can be reassuring for householders to have neighbours they can trust, this alone cannot substitute the value of sensible home security measures." More »
By Marianne Straker, Home Insurance - Fri 20 Apr 2012
Consumers being warned of unnecessary water pipe insurance
British homeowners are being warned of companies offering unnecessary insurance for underground water pipes.
A report by consumer watchdog Which? found that ten out of 12 of the UK's biggest water firms were promoting cover policies for supply pipes costing Brits around £100 million a year.
The companies were found to be advocating taking out third party protection plans despite offering their own free water pipe repair schemes, which the watchdog believes customers should take advantage of. However, despite these offers many water companies were playing them down.
As many more first-time buyers attempted to get on the property in February, with the Council of Mortgage Lenders revealing that 14,100 loans were taken out in the second month of the year, Which? is warning people not to get caught out with unnecessary bills.
Richard Lloyd, executive director of the company, said: "It's totally unacceptable that water companies are pushing potentially unnecessary water supply pipe insurance from third-party private companies." More »
By Marianne Straker, Home Insurance - Wed 18 Apr 2012
Partiers urged to insure their Diamond Jubilee celebrations
Those planning to celebrate the Queen's Diamond Jubilee are being urged to insure their home against any eventualities.
As the monarch prepares to celebrate 60 years on the throne many people will be holding house parties to mark the occasion. While councils are inundated with applications for street celebrations hosts of smaller gatherings are being encouraged to safeguard their home.
The extended Bank Holiday will see many people take advantage of the break away from the office and celebrate in style at street parties, in their home or a friends, but the Association of British Insurers (ABI) has warned people to take care when hosting these parties.
It is not only exclusive to the Jubilee with major events such as Euro 2012 and the Olympic Games also set to see similar gatherings.
Nick Starling, of the ABI, said: "There is no law that says you must buy insurance for these events – but as the organiser of the event you could be personally liable if something goes wrong." More »
By Marianne Straker, Home Insurance - Tue 10 Apr 2012
Household costs hit highest rate in 4 years
The cost of running a home in the UK has hit the highest rate since 2008, according to figures from Halifax.
As part of the company's annual review it found that utility bills account for 89 per cent of the rise in the past four years, however this was set against a fall of 23 per cent in the price of the average mortgage.
In the past year, the price of running a house has grown by 2.7 per cent (£243) in January 2011. Housing costs have also risen by 55 per cent over the past decade and as the recession continues to bite many homeowners are struggling to cope.
Martin Ellis, housing economist at Halifax, said: "The prospect of declining consumer price inflation through much of 2012 may help the costs associated with running a home to ease as well, providing some welcome relief to homeowners."
A recent survey by Scottish Widows revealed that 4.4 million Brits admitted to being unsure over their future finances. More »
By Marianne Straker, Home Insurance - Tue 10 Apr 2012
Brits risk large bills not checking outside problems
The upcoming Easter weekend will see an estimated 9.5 million Brits carry out DIY work on the inside of their homes, but it is outside problems that could leave property owners with hefty bills.
Research by Aviva found that defective chimney stacks, loose or broken roof tiles and blocked guttering that goes unchecked could land homeowners with bills reaching up to £10,000 to repair.
As many people in flood-hit areas are taking out extra home insurance to avoid eventualities that could prove increasingly costly to repair, homeowners are being urged to make sure they carry out regular checks on their properties for any damage.
Aviva believes that a regular "MOT" of a person's home will check for any repair work that may need to be carried out.
Heather Smith, director of home insurance at Aviva, said: "That protective spirit is great to see, but many of the common and expensive problems that affect homes often begin outside the home." More »
By Marianne Straker, Home Insurance - Tue 3 Apr 2012
Homeowners make energy-efficient changes to save money
British homeowners are turning to energy-efficient methods in a bid to save money on household utility bills.
Research by M&S Home Insurance revealed that many residents are looking into ways to be more "green" in a bid to reduce the amount of outgoings on energy bills in a tough economic climate.
The study found that 49 per cent of homeowners were thinking more about the environment as a means of saving money whereas 17 per cent did it in a bid to reduce the amount of carbon emissions.
People use a variety of energy saving measures such as switching off lights when not in the room (87 per cent) and shutting off the heating when they leave their home (70 per cent).
Fleur Carruthers, M&S Money's home insurance manager, said: "In the current economic climate saving money is a huge priority for most households, so it's great to see so many people are realising the financial benefits of going green while also helping the environment."
The government is aiming to make the country more energy-efficient and aims for renewable sources to account for 15 per cent of the UK's consumption by 2020. More »
By Marianne Straker, Home Insurance - Mon 2 Apr 2012
Dry weather could cause havoc for homeowners
As "drought" conditions continue to sweep across Britain many homeowners are being warned that the dry weather could damage their property. More »
By Marianne Straker, Home Insurance - Wed 21 Mar 2012
Homeowners facing further uncertainty over flood insurance
The British Property Foundation (BPF) is urging the government and insurers to come to an agreement over flood protection.
Businesses and homeowners are set to face further uncertainty after ministers announced that a deal between the two to provide flood insurance was not to be renewed after the cut-off point in June 2013.
However, this move has been condemned by the BPF, which believes that it could expose a number of properties in flood risk areas. The government has advised homeowners to provide their own defences once the insurance deal expires.
Britain has been subject to a number of floods in recent years with areas such as Cockermouth, Cumbria, and Tewkesbury, Gloucestershire, being the worst affected.
Liz Peace, chief executive of the BPF, said: "This is a huge issue that is not getting the focus it needs, and time is running out. Its impact will be felt not only by our industry, but also banks and mortgage lenders." More »
By Marianne Straker, Home Insurance - Tue 20 Mar 2012
Govt launches NewBuy Guarantee housing scheme
The government is aiming to boost the country's housing market by introducing the NewBuy Guarantee scheme.
Property investors will be able to borrow 95 per cent of the value of their home and ministers believe that it will help over 100,000 potential homeowners buy a "new" house currently under construction.
With the British property market currently stagnating many first-time buyers are being put off by high rates of deposits, which has led to low confidence in the new homes sector and the government is aiming to put an end to this pessimism.
It will mean that taxpayers and the construction industry will become co-guarantors for any homes bought by current or would-be first-time buyers.
Prime minister David Cameron said: "Strong families and stable communities are built from good homes. That's why I want us to build more homes and I want more people to have the chance to own their own home." More »
By Marianne Straker, Home Insurance - Mon 12 Mar 2012
Homeowners advised to make their own flood defences
Flood-hit homeowners are being urged to provide their own defences in a bid to prevent future problems.
It comes after it was announced that a five-year plan for households to purchase protection against the eventuality was set to end in 2013 with no further plans to renew it.
The original agreement between the insurance sector and the government aimed to provide property owners with flood cover, but now that will be scrapped as ministers believe that it "will not solve the problem".
In the past few years Britain has been plagued by floods with areas such as Tewkesbury, Gloucestershire, and Cockermouth, Cumbria, being the worst hit regions, causing misery for the residents of these towns.
However, Richard Benyon, the minister for natural environment and fisheries, is now urging people living in affected areas to take more responsibility for their homes.
He said: "The current agreement does not apply to the majority of households at significant flood risk, nor does it apply to homes built since January 2009. It provides no universal guarantee of flood cover, as many claim it does." More »
By Marianne Straker, Home Insurance - Thu 8 Mar 2012
Nearly all Brits would welcome VAT cut on energy bills
British consumers have voted in massive numbers in favour of a VAT exemption on household energy bills.
New research by uSwitch found that 98 per cent of UK homeowners would like to see the government axe the VAT rate on energy bills altogether in a bid to make the cost of living more affordable.
With rising utility bills and home insurance premiums recent figures revealed that if the tax rate was even slimmed down it could save the average household £60 a year on energy costs.
The insurance company found that 53 per cent of Brits would use the extra money to keep the heating on a little longer during the winter months which may not have been previously possible.
Ann Robinson, director of consumer policy at uSwitch, said: "If the government wants to give householders respite from the high cost of energy it will have a battle on its hands and this will be a blow to those who would have seen real benefit from the speedy removal of VAT." More »
By Marianne Straker, Home Insurance - Tue 6 Mar 2012
