Empty homes provide summer burglars with easy pickings. In the excitement of preparing for your holiday, double checking your home cover is up-to-date might not seem very appealing. But when you leave your home empty you leave it at risk, so it is absolutely essential that you make sure it is secure and protected.
The summer is a peak time for burglaries, with 42% more theft claims than in the winter months according to Saga Home Insurance, which also says that nearly half of all burglaries occur when a home is empty.
What should you do to protect your home?
You need to do everything you can to make it look as though you are still at home.
Measures such as cancelling the milk and newspapers, and getting timers on your lights can be helpful, but it’s also worth asking a friend or member of the family to act as a housesitter while you are away, or at least to push any protruding post through your letter box.
Decent window and door locks are vital, as is a burglar alarm (according to recent research from Confused.com, 16 million homes in the UK do not have an alarm fitted), and having these in place could also reduce your home insurance premiums.
Also look at access to your back garden or the side of your property. Do you have a sturdy gate with a lock, or is it easy for somebody to access your land without being seen?
Whatever you do, don’t leave a spare set of keys in the garage or shed - even if you think they are well hidden.
Ensure you insure your property
These preventative measures are important but the reality is that burglaries still happen. They are always upsetting and some things are irreplaceable, but knowing that home insurance could recompense you for your belongings is invaluable.
Yet despite this, Confused.com estimates that almost 10 million households in the UK do not have any form of home insurance.
Is your home underinsured?
Even those who do have contents insurance are often significantly underinsured. This happens because, as we increase our possessions over time, we tend to forget to increase our contents insurance to cover the extra value. This is a potentially expensive problem, particularly when you consider that research by Sainsbury’s found that the cost of replacing the contents of the average British home is £45,000.
Cover your car
If you are taking your car on holiday you might be making long car journeys or driving in unfamiliar areas. A bump on holiday could be costly and comprehensive car insurance could save you hundreds of pounds.
Even if you are leaving the car at home this year, it could be at risk of theft. If you only have third party cover, upgrading could be a smart move and needn’t mean vastly increased premiums.
Whatever you do, don’t neglect your home and possessions when you go away. It can cost surprisingly little for the peace of mind that your property is protected.
Protect Your Home Whilst on Holiday
Home Insurance - But What About the Garden?
As we continue through the global financial crisis, government figures and insurance company surveys are again and again reminding us that burglaries and thefts are on the rise as a result.
A particular spike in home insurance claims in North Wales has been reported by the region's Daily Post, calling for homeowners to be 'vigilant', as opportunist thefts continue to rise. But this notion of opportunism amongst thieves is also reflected in a report by The Guardian, which offers an intriguing twist on insuring your home.
So are we slacking off when it comes to garden property? And should we consider specialist insurance?
In Huma Qureshi's article, 'Protected your home against theft? Don't forget your shed', she states: 'Garden theft increased by 63% over the summer months last year from the previous year and is expected to rise again in 2009.' A fact that is all the more disturbing when we realise, as discovered by Marks and Spencer, that the average UK garden includes £700 worth of greenery, whilst our garden sheds contain £900 worth of equipment.
Gardening watchdog, Which?, claims that the items that have been going missing most frequently range from such likely things as bicycles, lawnmowers and tools, but can in fact include such odd pieces such as plant pots, heavy statues, and even trees.
Consequently, there are a number of issues that need to be addressed. Not only are such thefts a result of an increasing desperation amongst thieves to make quick cash, but over the last ten years there also seems to have been an increasing complacency amongst homeowners who do not realize the material (and sometimes, sentimental) worth of garden items until they are taken - at least by comparison to items they would store in the home.
There are simple methods to increase security of items, such as ensuring you store away equipment when it is not in use and being sure that your home insurance covers certain items even when they are left outside. Each insurance company will have different policies with varied degrees of cover, so it pays to check and research, yet the average for items in outbuildings is up to £2000, so it certainly makes sense to consider specialist insurance should you own any expensive equipment (such as lawnmowers etc) and/or anything of particular sentimental value.
Trying to Cut Costs? Post Office® warns that skimping on insurance might not be the best option
The recession is causing many of us to re-assess our outgoings. It might seem tempting to some, but Post Office® has issued fresh warnings today that cutting back on home and car insurance is not the best way to save on the pennies. Alongside fresh statistics that around 3,000 people die on UK roads as a result of car accidents, many are still looking to cut back on what should be a necessity – even though they are aware that having no car insurance is illegal.
Post Office® research is also showing an increase in customers who are switching from their existing “Comprehensive” policy to cheaper options such as “Third Party, Fire and Theft” and just “Third Party”. There has also been an increase in visitors to comparison websites and trends for other incentives in the industry such as cash-back which has been criticised for the confusion it can cause to some consumers.
Consequently, to ensure customers get the best cheap car insurance quote, the Post Office® has launched the simple and successful Quotefinder tool. Just type in your current premium price and challenge the Quotefinder to get you a better quote from its comprehensive database of top insurers, in seconds.
Despite reports elsewhere that premiums are on the rise, Post Office® is adamant that we are living in a buyers’ market currently in the UK. This is also particularly relevant to the home insurance industry where, again, many of us are eager to cut back on payments. Although the risks and legal issues may not be as serious when it comes to insuring your house, homeowners are being reminded that we are seeing an increase in burglaries and thefts. Most notably, cases of opportunist stealing from gardens and outbuildings such as sheds are expected to increase by more than 63 percent in comparison to two years ago.
And finally: consider your contents.
The Manbag is set to make an even bigger splash than it did last year, with celebrities such as David Beckham and Kanye West pioneering the look – and making the trendy holdalls even more desirable. Post Office® are warning that designer labels may necessitate specialist insurance, whilst their contents – which on average can amount to as much as £418 – might not definitely be covered by your existing home insurance.
Emma Baunach, of Post Office® Home Insurance said: 'It's important that men consider this a serious risk and take steps to protect their possessions by taking out personal possessions cover as part of their contents insurance.'
The Age of Insurance: Are we being discriminated?
Labels: Car Insurance, Home Insurance, Travel InsuranceThe age of an individual has always been an issue when it comes to insurance. Yet, it seems that with the spotlight currently firmly on the industry as it finds itself at the heart of the economic crisis (at the same time striving to assure customers that cover is no less relevant and affordable), a wave of criticism regarding age discrimination by insurers has been seen in the media. So are we being discriminated against by insurance companies?
One of the issues that can be seen to hinder the trustworthiness of these discrimination claims is the fact that they seem to have been borne from the work of comparison websites. Without mentioning any comparison site specifically here (and I endorse the usefulness of such services), reports at moneynews.co.uk state of one site’s research which found “that young drivers pay more for their insurance”. (This is in April 2009 under the headline: Car Insurance Industry Rife with Discrimination.)
The first problem here is that this is nothing new: 17 and 18 year-old drivers have had to pay expensive premiums for car insurance cover for years now, and the shocker is that this is still increasing (as are most policies). I acknowledge, also, that a 17 year-old girl must pay 58 percent more than her 18 year-old friend – and this is alarming.
However, I do think we need to understand two things. The first is the process by which car insurance premiums are calculated for individuals with no or minimal driving background. Other than their peer group, where else can insurance companies look in order to ascertain the risk and its subsequent monetary equivalent? The second thing to remember is when the implied (or sometimes, outright stated) answer to a newsworthy issue is to compare quotes from different companies, possibly via a very hand comparison site, then such “reports” are likely to be biased.
That said, in a separate report at the same site (and with research carried about by the same comparison website), a more unfair and less justifiable trend has emerged in the travel insurance sector. The report, Travel Insurance Prices ‘Hiked Overnight’, states that a 66 year-old individual will pay an average of 106 percent more for a policy than a 65 year-old – a difference that is far more extreme, and which doesn’t appear to need to depend so much on a general peer risk assessment when an individual medical report and the risk of destination can be taken into account. I suppose the lesson here is to keep an eye on your policies with the same fervour you question your information sources.
How Home Insurance Complacency Can Cost You £££s
As the recession continues to take its toll, it's more important than ever to ensure you're not paying over the odds for cover. Recent findings show that British householders are overpaying on their home insurance by £1.3 billion per year*, and that almost 58 per cent of UK homeowners have not reviewed their policies in the last three years.**
No reward for home insurance loyalty
While it may be tempting to automatically renew your policy with the same provider year after year, this kind of complacency makes little financial sense. Insurers know most customers will do so without looking at what else is on offer, so tend not to pull out all the stops in a bid to keep your business. Instead, they concentrate on offering the most competitive prices to new customers.
Shop around for a better home cover deal
As insurance premiums can vary considerably, the golden rule is to spend time shopping around; you may be surprised at just how much you can save in a pretty short space of time. When doing your research, don't forget to look at the level of cover as well as price, as the cheapest deal may not necessarily be the most comprehensive.
Top tips to cut the cost of home cover
- Shop around using an insurance comparison site to see if you can bring down the price of your premium. Just a few minutes tapping away on your PC could result in savings of over £180.***
- Don't jump at the home insurance policy offered by your mortgage provider without checking whether you can get a better deal elsewhere, and don’t assume you have to take buildings and contents cover with the same provider. Search for the cheapest individual buildings policy and then for the cheapest contents policy.
- Further savings can be made by paying the whole year's premium annually rather than monthly, and by increasing the voluntary excess.
- Be aware that while under-estimating the value of your contents may have the attraction of cutting the cost of your policy, it could be disastrous if you have to claim. For more information, read what not to forget when applying for home insurance.
- Also ensure that you've got your ‘rebuild cost’ right. Many people think that rebuild cost is the same as the market value when it is really a lot less. A rebuild calculator will work this out for you automatically.
- Security improvements: a few additions to your home can also help you cut costs, such as installing a good alarm system, putting five-level mortice deadlocks on external doors, and adding key-operated locks to all accessible windows.
- Safety improvements: for a relatively small expense you can also fit smoke alarms and fire extinguishers - all of which can significantly reduce the price you pay.
Help with getting through the quote process
Finally, make sure you have your old insurance documents to hand when going through the quote process as this paperwork can be used for reference - and will save you from running around the house when asked what type of locks you have on the doors.
You can find more useful tips on reducing home insurance premiums here.
*Assumptions used - 44 per cent (source Mintel) of 16 million homeowners who have not reviewed their home insurance in the UK multiplied by the average home insurance saving by Confused.com customers in 2008 of £185.25.
**Mintel Home Insurance report 2008 and Mintel Aggregator report 2008.
***24% of customers who received a home insurance quote between 1st January and 31st March 2009 and provided a best alternative price saved over £180.74.
Home Insurance Fraud: Don’t Be Lured to the Darkside
Labels: Home Insurance, Home Security
When the going gets tough, the tough sometimes get fraudulent. Recent figures released by the ABI (Association of British Insurers) have shown a record level of fraudulent insurance claims, proving people are willing to use their insurance policies as a way of bringing in extra cash.
According to statistics, 2000 fraudulent claims are made every week, amounting to an estimated value of £14 million.
What is insurance fraud?
If you make an insurance claim for something that either hasn’t happened, or you know to be wrong, you’re committing insurance fraud.
How much fraud is there?
The most common form of fraudulent claims is for home insurance - 55,400 frauds were detected last year at an estimated value of £110 million.
Why are there so many claims?
There are more opportunities for fraudulent home insurance claims than for any other class of insurance.
Car insurance fraud, for example, requires a little planning to orchestrate a convincing accident or theft. However, spilling paint on your sofa in order to get a new three-piece suite, is much easier.
Who’s guilty of insurance fraud?
A YouGov survey of 3000 adults, showed one-in-five admitted they’d be tempted to cheat on their insurance - despite the likelihood of getting caught.
But if you think cheating’s a quick way to boost your bank account, think again – the insurance inspectors will be after you!
The crackdown on fraudsters
“Fraud thrives in a recession, so insurers are intensifying their crackdown on insurance cheats,” says Nick Starling, ABI’s Director of General Insurance and Health, on the ABI website.
Claimants may have to provide minute detail, and may even find forensic experts getting involved, all in an effort to stem the tide of fraudulent claims. And if found out, fraudsters may be blacklisted by insurers, or may even gain a criminal record.
Fraud makes home insurance more expensive
Cracking down also prevents honest policyholders paying the price.
“Fraud adds an extra £40 a year to the average premium,” says Starling, “which is why the harder we make it for the cheats, the more competitive premiums will be for honest customers.”
For more information on home cover, read Confused.com’s Home Insurance Buyer’s Guide.