At this time of year, the last thing anyone wants to be thinking about is becoming the unwitting victim of crime. However, lack of awareness means that homeowners who seem to be caught up in the optimism and magical atmosphere of a family Christmas could be leaving themselves open to untold misery and financial doom and gloom caused by opportunistic festive thieves.

A combination of poor home security and a towering stock of expensive goods piled high in a predictable location (such as under the illuminated Christmas tree, often placed in a position that can easily be seen from the road outside) is leaving homeowners extremely vulnerable to burglary.

Confused.com have revealed that just one in four British homeowners bother to increase the level of their home security despite festive thefts costing homeowners or insurers around £2,623 on average.

Although this may sound like scaremongering, it is wise to take a few simple precautions in order to guard against Christmas misery. Try not to leave your gifts on display under the Christmas tree and keep the curtains closed when you can to ensure thieves can’t spy on your goods. Ensure your valuables are properly covered on your insurance policy and are valued as accurately as possible. This is particularly important when you consider that the top five items taken by thieves last year were laptops, Nintendo Wii consoles, digital cameras, Playstation 3s, and Sony PSPs.

Furthermore, try to make life difficult for thieves by leaving keys in hiding places that aren’t at all obvious and consider painting your drainpipes with anti-climb paint. Installing an obvious burglar alarm in a prominent position may also act as a deterrent.

The temperatures may have been going down, but one thing which has been going up quite rapidly is the number of home insurance claims.

A number of insurers announced that they had seen significant rises in claims following the recent spell of freezing weather that hit the UK in November, which surprised everyone by arriving so early.

Amongst those insurers revealing a rise in claims was Axa, which said it had seen double the normal calls for home insurance claims, and Lloyds TSB, which revealed that it had received seven times as many claims for burst pipes following the cold weather.

The Association of British Insurers (ABI) said it cannot yet tell how much the cold has cost the insurance industry, but if the last cold spell is anything to go by then the figure is expected to be high. Back in January, the freezing weather was responsible for £650 million in insurance claims, most of which was due to burst pipes.

Leaking and burst pipes can cause serious problems for properties, including electrical faults and structural issues. Lloyds TSB has provided some helpful tips to help prevent burst pipes from occurring, including:

• Provide insulation to all the water pipes and the sides of the water tank
• Turn central heating onto a low setting if you are going away over the winter
• Use the frost protection thermostat on your boiler if you have one

If a pipe does burst, Lloyds TSB advised homeowners to:

• Turn off the mains water supply
• Turn off the electricity in the area affected by the leak, or turn off all the electricity if there is substantial damage
• Drain the taps of any remaining water in the system
• Contact your insurer immediately

With the next cold snap set to hit the UK shortly and lasting into the New Year, things could get a lot worse for insurance companies before they get better.

As the snow thaws across some parts of the UK whilst others experience the chaos brought about by fresh snowfall combined with that old enemy, ice, there really isn’t a better time to carry out a winter MOT at home. You may have dusted down your car, checked the engine, and given the brakes a good once-over since the start of the cold snap, but many Brits fail to show this same level of care to the very place they sleep at night.

Halifax Home Insurance has been the driving force behind the campaign to encourage homeowners to get their homes ready for winter and help them recover from the unexpectedly early winter spell that we’ve all grown so sick and tired of over the past couple of weeks. With the insurance company receiving over 18,500 claims last year relating to frozen and burst pipes alone, and 8,000 other unlucky homeowners having to make a claim for damage inflicted by stormy weather, it’s clear to see that we Brits can be guilty of taking a somewhat lazy approach to winter preparation when it comes to the home.

Carrying out a home MOT really isn’t difficult. First of all, check for existing damage by doing a circuit of your home to see if there are any roof tiles that have either fallen away from the structure or are cracked. You should also have a look at the state of your gutters and drains to check that they aren’t overflowing with debris caused by storms or general winter wear and tear.

After carrying out these checks and making the necessary repairs, prepare yourself for the long wintry months lying ahead of us, with the Met Office still issuing severe weather warnings; keeping torches and warm clothing in an accessible place, and stocking up on blankets, tinned food, and bottled water, are all wise moves.

The number of companies in the UK which are currently offering home insurance has continued to increase according to independent research company, Defaqto, which claims that there are now 73% more home insurers than there were six years ago.

Although this increase has brought a number of significant benefits to consumers, these benefits could yet turn out to be short-term boosts if the number of companies proves to be unsustainable in the long-term, with the current financial situation continuing to prove difficult for all companies to operate successfully in.

Defaqto’s Insight Analyst for General Insurance, Mike Powell, suggested this when he revealed that the research company believes that the rise in insurers means “there are long-term implications for [companies], who may need to consider how they restrict premiums while simultaneously lowering the cost of acquiring and retaining new customers”.

All of this hints at the suggestion that consumers may yet see the quality of their home insurance drop significantly as companies look to triumph in a bitter race to lower prices, something that could potentially hurt those who need to make a claim in the future as companies continue to prioritise price over the range of coverage they offer.

As the insurance industry continues to move away from the ‘one size fits all’ approach that it had previously relied upon, having been forced to adapt to an age in which price comparison websites allow consumers instant access to quotes from a range of companies, the difficulty of ensuring that companies are using correct business models means that any company that makes even the slightest wrong decision could end up finding that it was the last decision it makes as a company, with competition for customers increasing all the time.

The Co-Operative Insurance and housing charity Shelter have released new research stating that 5.41 million households (that’s over a fifth) have no home insurance at all. This is especially worrying with winter approaching, as home insurance claims nearly always go up during this season.

The research revealed that many people are choosing not to renew their insurance policies, with 42% of people stating that they cannot afford to take out insurance.

Failing to take out home insurance can lead to serious consequences, but despite that, 22% don’t think it is important. Of those questioned, 18% don’t think they have anything to protect, 16% have never taken out insurance and 15% don’t have it because it is not a legal requirement.

The research also revealed a worrying picture of the nation’s financial concerns. 68% said that they were worried about money, 28% have more going out than they are earning, and the average deficit is £165. On top of that, 26% are worried that they cannot pay their bills each month.

These are shocking facts that will be a surprise to many. The fact is that home insurance is a crucial part of renting or owning any property. Many people don’t realise just how much they own, and there are also liability issues to consider that make it worthwhile taking out insurance.

The Co-Operative Insurance and Shelter are joining together to raise money for the homeless charity. For every new home insurance policy purchased at the Co-Op, £5 will be donated to Shelter. In total, they are hoping to raise £250,000 through the initiative.

A student house is a dream come true for burglars. With multiple occupants (many of whom will in all likelihood have at least some of the student must-haves such as TVs, laptops, mobile phones, MP3 players and many other gadgets besides), the burglar can make a clean sweep in next to no time.

Sadly, when students get together to share a house, insurance is not always uppermost in their minds. They are far more likely to spend time devising a washing up or cleaning rota than spend time surfing the net looking for a suitable policy.

Endsleigh Insurance have recently come up with a novel policy which should make life a lot easier for those sharing accommodation this academic year. The policy is designed for student house share situations and covers up to £3000 worth of belongings per student. The more people who are included on the policy, the cheaper it is per person. Each student has their own log in details and can tailor the cover to suit their individual needs.

Many students make the mistake of assuming that their parents’ home cover includes their belongings when away at university but this is not often the case so, if in doubt, the exact terms of the policy should be checked carefully.

Although students have a staggering £3.3 billion worth of possessions with them in their accommodation, an equally staggering £1.7 billion is not covered. Leaving home can be stressful enough without adding to the woes by failing to take out appropriate insurance.

AA Insurance has warned the government that cutting spending on flood defences across the UK could have devastating consequences. The company has warned that if the government goes ahead with its plans, then hundreds of thousands of homes may not be able to be covered by any insurance provider.

The government is considering cutting flood defences as part of its Comprehensive Spending Review. However, the AA wants it to think very carefully about this particular idea. Indeed, rather than cutting expenses, the AA wants the government to increase spending.

Simon Douglas, the director of AA Insurance, said that if flood defence spending is cut, many people won’t be able to get a mortgage on a property because they will not be able to take out insurance.

He also made it clear that it wasn’t just the people living in properties at risk of flooding who would suffer; premiums would go up across the country, so everyone would be forced to pay more.

Douglas made the comments in an open letter to Caroline Spelman, the environment secretary. He painted a stark picture of the possible effects of cutting spending, stating that “millions of people are at risk of inundation from overflowing rivers, coasts and estuaries” when we experience weather extremes, adding that the risk is “increasing all the time”.

Home insurance providers are currently signed up to the Statement of Principles, which means that they have agreed to offer cover to existing customers up to 2013, as long as flood risk is still being managed properly.

If the situation changes and flooding becomes too much of a risk, things could start to look very bleak indeed.

A new study has shown that one in eight students have been victims of theft, with a total of £54 million of goods being stolen from students in the last year.

Moreover, this week BIBA (the British Insurance Brokers’ Association) urged people to pay attention when valuing their goods, suggesting that the majority of people undervalue their own possessions and therefore don’t have adequate insurance if they have to make a claim.

The study was undertaken by Santander Student Current Accounts, and together with BIBA’s announcement, students have been given a clear warning about the need for home insurance.

For most students university is their first experience of independent living and their awareness of details like contents insurance and its importance is likely to be small, making it all the more important.

The most common objects stolen tend to be electronic goods such as mobile phones, laptops and MP3 players. Bicycles are also stolen on a regular basis. The average value of items stolen, according to the study, is £211.

When it came to valuing their contents, Graeme Trudgill, technical and corporate affairs executive at BIBA, said that customers often do not account for many of their everyday items such as designer clothes and the combined value of electronic equipment, music collections and similar commodities.

UCAS has said there will be 470,789 new students this year heading to universities across the country. This new research suggests that almost 60,000 could be victims of theft during their time at university.

Students can often insure their goods under their parents’ policies as halls of residence are only considered temporary accommodation.

In regards to purchasing a new policy and correctly valuing goods, Mr Trudgill of BIBA said that people with a lot of stuff have got to "add it all up" which doesn’t take long and will make sure that they are fully covered.

The FSA have issued the largest fine in their history. Zurich Insurance were fined £2.275 million after the loss of a data tape in 2008, whilst moving the tape to a new location in South Africa. Zurich did not learn that the tape had been lost until a year after that date. The data held included the personal details of over 46,000 UK customers and many more in South Africa. The tape was never recovered, although it does not appear to have been stolen.

Zurich Insurance had outsourced their data storage security to a South African firm but they had failed to create proper incident reporting lines and, as such, it took over a year for the information concerning the loss to reach them. Zurich informed the FSA immediately upon discovering the loss and, in a further admission of culpability, they agreed to settle at an early stage of the investigation.

The data held contained the personal details of clients’ homes and motor insurance, also including bank account and credit card information, security details for property, and insured assets and valuables. Zurich have been keen to stress that there is still no evidence that the tape was stolen; it remains lost, but there is no evidence of foul play or that the information contained has been compromised.

Stephen Lewis, the chief executive of ZIP UK (Zurich Insurance PLC), said: "This incident was unacceptable. Supported by KPMG, we commissioned a comprehensive review of our data security systems and procedures and have taken a number of steps designed to enhance those procedures”. At the time, Zurich also set up a response centre to discuss the information with clients and to inform them in detail of what information was contained about them.

The FSA made it clear that had they not admitted guilt and been co-operative at such an early stage, the fine would have been much higher. The FSA administers a 30% discount for agreeing to settle at an early stage and without this the fine would have reached £3.25 million. Previous fines for data loss have been given to HSBC, Nationwide, and Norwich Union.

Margaret Cole, the FSA’s director of enforcement and financial crime, said: "Zurich UK let its customers down badly. It failed to oversee the outsourcing arrangement effectively and did not have full control over the data being processed by Zurich SA”. She continued to say that "firms across the financial sector would do well to look at the details of this case and learn from the mistakes that Zurich UK made".

Since the incident, Zurich has updated its security measures and will administer continuous checks. The FSA is due to be closed down in the near future as part of cuts made by the new coalition government. Its responsibilities will be passed to the Bank of England.

Moneysupermarket.com has recently compiled a Top 20 list of postcodes whose residents are most likely to have to make a claim on their home contents insurance policy for burglary.

There is a spread between north and south, inner city and suburbia, but those living in London will be concerned to see that the capital takes 10 of the 20 postcodes on the list.

Top of the list, though, is a postcode in Manchester (M21), covering the area of Chorlton-cum-Hardy, which lies four miles south-west of the city centre.

The worst areas in London are Blackheath (SE3), Hammersmith (W6) and Finsbury Park (N4) although this statistic takes no account of those who either do not have contents insurance or those who do not make a claim.

The cities of Leeds and Bristol also figured in the Top 20, both with two postcodes apiece.

Julie Owens of moneysupermarket.com has used the publication of the list as an opportunity to remind people of the importance of contents cover, saying that no-one is immune and that having one’s home burgled is an “emotional and frightening experience”. Opportunistic thieves can strike at any time so it is vital that not only do you ensure that you have cover but also that it is sufficient to compensate you for items stolen.

There are of course steps that everyone can take to make their property less attractive to the criminal element, such as installing security lighting and a burglar alarm, keeping valuables hidden from view, and making sure that keys are not left in places such as under the doormat or so close to the letterbox that anyone could hook them and use them to open the door.

To see the full Top 20 list, click here.