Home Insurance Guide Blog

Good weather means rich pickings for thieves

Mon, 23 Aug 2010 16:25:41 BST

The positive effects of good summer weather on all of us are well documented. But sadly the pleasant conditions which we have been having recently are a boon for burglars too. The ABI (Association of British Insurers) has now warned that good weather can quite literally mean open house for the criminal.

When the mercury soars, householders throw open the windows - often with scant regard for the consequences. Whilst we are sitting in the back garden, making the most of the summer weather, it is not just a cooling breeze that we are allowing in through our open windows.

In some areas of the country, half of all burglaries are made easy by householders leaving a door or window open which is then used to gain entry.

Police have also been quick to point out that it is a myth that most burglaries are carried out under cover of darkness. Indeed, burglars know that householders are likely to check doors and windows before going to bed and therefore prefer to strike in daylight hours when their job is made easy by sloppy security.

It is of course also peak holiday season, another factor which provides rich pickings for the burglar, especially when it is obvious that the house is unoccupied. Simple precautions such as asking a friend or family member to pop in to pick up post, remembering to cancel newspapers and milk deliveries and using a cheap timer to operate lights can all make your home safer.

Last summer, insurance companies paid out £84 million in burglary claims and, although householders may have been financially recompensed for the thefts, nothing can ever compensate you for items of sentimental value or for the trauma of discovering that your home has been burgled.

Home insurance fraud on the rise

Fri, 13 Aug 2010 14:35:31 BST

Recent figures released by the Association of British Insurers (ABI) have revealed that insurance companies uncovered 122,000 fraudulent insurance claims in 2009, up 14% on the figure for 2008. Stats suggest that 4% of all claims by value in 2009 were fraudulent, a figure that is nearly double that of five years ago.

As well as this, the ABI reported that the value of bogus claims has also risen by 14% on 2008 figures. The result of these claims is that insurance companies have seen motor and home insurance policies push the value of detected insurance fraud to a record £840m in 2009.

Although not the highest by value, the ABI have reported that the highest number of bogus claims was detected in home insurance, with 62,000 false or exaggerated claims picked up in 2009 alone.

Reacting to these worrying statistics, the ABI's director of general insurance and health, Nick Starling, has warned potential fraudsters that they are “more likely than ever to get caught, leading to more expensive and harder to obtain insurance and credit, and the possibility of a criminal record.” This stark warning should help remind people thinking of placing a bogus claim of the foolishness of their decision and the likely outcome of it.

A potential implication of the rise in bogus claims is that honest consumers will see their premiums rise through no fault of their own. However, with consumers already hard pressed to afford a reported 11.5% increase in car insurance alone, insurers would risk seeing people take their chances without insurance should they choose to increase their premium rates.

Admiral to offer house insurance

Thu, 05 Aug 2010 13:36:07 BST

One of the UK’s top car insurance providers, Admiral, is looking to expand its business by providing home insurance cover as of next year.

Admiral currently insures 6% of the cars on UK roads and, as an established name in the insurance industry, it expects that its transition into home insurance will not be one that leaves current customers with increased premium costs. This confidence is based on the fact that Admiral owns price comparison websites confused.com and elephant.co.uk, which means that it will be able to avoid expensive advertising and marketing campaigns, as it will be able to advertise its new service on these websites.

Despite rivals Moneysupermarket.com and Go Compare making up 69% of the market along with Admiral, the insurance provider is still confident that the success of its own price comparison websites will provide enough advertising exposure to avoid having to run a costly marketing campaign.

Admiral’s confidence is shared by at least one insurance analyst, who is certain that Admiral can make a success of its move into household cover. The expert believes that if Admiral is able to offer competitive premium rates by identifying and targeting a number of key areas of home insurance which are currently overpriced, it will be able to attract customers looking for better deals.

Despite its success over recent years, Admiral believes that in order to continue to grow as a company it needs to diversify into new areas. By gaining a foothold in the home insurance business, the company will put itself in the best position to expand further.

Alcohol fuelled incidents rampant

Fri, 30 Jul 2010 16:23:07 BST

New research released by LV= Home Insurance has suggested that a combination of the World Cup and hot weather has caused a rise in alcohol-related accidents, leading to an increase in home insurance claims. With the summer well under way, LV= Home Insurance’s research estimates a total repair bill of £264 million for UK homeowners.

One in eight of those questioned suggested that sporting events, such as the World Cup and Wimbledon, encouraged them to throw more parties than would otherwise be the norm, leading to a larger number of accidents than usual caused by intoxicated guests.

The majority of accidents reported have involved broken glass or crockery, or incidents that have resulted in spillages on furniture or stained carpets, with a large proportion of these accidents blamed solely on drunk guests.

John O'Roarke, managing director of LV= Home Insurance, has cautioned potential party hosts by suggesting that, “our research shows that having friends over can often result in accidents, and we see thousands of insurance claims each year for problems like red wine spillages on carpets.”

Although the recent figures coincide with this year's major sporting events, homeowners are also increasingly throwing large dinner parties with their friends, with many individuals thought to have been inspired by the hit Channel 4 TV show ‘Come Dine With Me’. Incidents whilst enjoying barbecues in the summer sun is also thought to be having an impact upon insurance claims.

With few, if any, homeowners likely to stop inviting their friends over to join them in celebrating major events or simply to enjoy the summer weather, bill payers should be aware of the need to check their insurance policies to ensure that they have proper accidental damage cover.

Prevention better than creativity

Wed, 28 Jul 2010 12:41:03 BST

As the schools break up and people go on holiday, insurance company Hiscox is warning that prevention is better than creativity when it comes to foiling burglars. Home owners can be extremely inventive when thinking of places in which to hide valuables but basic home security is likely to be far more effective in the end.

Imaginative hiding places uncovered by the insurance company include sewing jewellery into the lining of curtains, burying valuables in the garden, hiding treasured possessions in shoes and clothes, making your front door look scruffy in the hope that burglars will choose a better-cared-for house to burgle and hanging washing out before you go away to make the house look lived in.

The sad fact is that many of the favourite hiding places are known to thieves. Burglars are also likely to notice something awry if washing is left on the line for a fortnight, and things can go badly wrong when you forget that the shoes you are giving to the charity shop contain your prized jewellery.

Hiscox therefore recommends basic precautions such as the following:

Good locks for all windows and doors (including patio doors and those on outbuildings)

Security lighting outside

A home safe for jewellery and other valuables and a bank deposit box for any particularly valuable objects

Time-operated lights and/or a friend or neighbour to call in periodically

Andrew Cheney of Hiscox UK recommends that homeowners should think of creating “rings of security” around their properties to wear the would-be intruders down.

Are your shed contents insured?

Fri, 23 Jul 2010 15:44:23 BST

Recent research reveals that the average garden shed has contents worth almost £1,000. But if a burglar strikes, are you insured?

According to figures released last week by M&S Money, the value of goods stored in the average garden shed is £988 - £100 more than this time last year.

The most valuable goods stored in a shed are likely to be lawn mowers, bikes and tools. And yet, surprisingly, many people do not take adequate precautions to ensure that they are not likely to fall prey to thieves.

Almost half of us admit that the shed is not always locked and it looks as if we are becoming more complacent since this figure was only 24% last year. One in five of us say that the shed is frequently left unsecured and seven out of eight of us feel that the shed could easily be broken into.

The bad news is that many home polices do not cover shed contents and those that do are likely to insist on the shed being properly secured.

Home owners should not only be worried about the value of contents that could be stolen from an unlocked shed but also the fact that a tool stolen from a shed could be used to gain entry to the home.

The following hints will help make your shed more secure:

Invest in a decent padlock or lock and use it at all times
Fit window locks
Paint the windows or use blinds/curtains so that the contents cannot be seen
Don’t leave expensive items such as bikes and barbecues in the garden
Even if your shed was once secured by a padlock, make sure that it has not rusted over since you last looked, rendering the shed vulnerable to burglars