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News in Home Insurance
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Quarter of Brits worry about cold weather damage
The wintery weather is causing more Brits to worry about their property being damaged.
Siberian winds and heavy snowfall are set to hit the UK in the coming days and it is raising concerns for Brits who believe that any damage to their property could push up the cost of their home insurance.
Research by Santander found that one in four (25 per cent) people worried that their house could be hit by adverse weather conditions. A further 37 per cent believed that they would struggle to pay lighting and heating bills if temperatures dropped any further.
A survey by Direct Line found that 40 per cent of homes across the country did not have adequate cover and were susceptible to frozen pipes and boiler breakdowns.
Steve Burton, head of marketing at Santander, commented: "People are concerned about a wide variety of risks from the effects of adverse weather or their ability to pay the bills during the winter, but in some instances there are steps that can be taken to reduce the level of risk." More »
By Marianne Straker, Home Insurance - Thu 2 Feb 2012
Nearly half of UK vulnerable to winter weather
Britain is bracing itself for the long-awaited barrage of winter weather and home insurance company Direct Line has revealed that 40 per cent of properties are vulnerable to damage caused by sub-zero conditions.
The Met Office is warning of snow falls, sleet and freezing temperatures as the UK is finally hit by wintry weather following a relatively mild December and January. Experts have issued a "yellow" warning of snow and ice in rural areas and some northern cities.
Direct Line has found that nearly half of homes are susceptible to frozen pipes and broken boilers if temperatures drop into the minuses. Whilst the cold weather is expected many homeowners have yet to make sure their property is ready to cope with it.
Stuart Curson, head of company's home insurance, said: "As the last two winters have demonstrated, bad weather can cause serious damage to property, as well as enormous stress to homeowners. Whilst this winter has proved mild so far, the current weather predictions should ring alarm bells for many householders." More »
By Marianne Straker, Home Insurance - Wed 1 Feb 2012
Flood protection needs to be 'national priority'
Residents need to make flood protection a "national priority", according to the head of AA home insurance.
A report by the Public Accounts Committee found that the annual damage caused by floods cost the country £1.1 billion and the figure is set to rise. The government recently announced that it plans to cut the Environment Agency's flood risk management budget by ten per cent.
This will mean that many homes across the UK will become unable to afford the insurance premiums needed to protect a property from flooding. In 2009, Britain was hit by a number of flash floods in places such as Cumbria and Kent as a month's rain fell in just 24 hours.
Now the AA is urging residents to make sure they have measures in place to stop any further property damage caused by floods.
Simon Douglas, director of the insurer, said: "Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year. People want the government to take decisive action now, to ensure that their homes are protected." More »
By Marianne Straker, Home Insurance - Tue 31 Jan 2012
Buying properties becomes cheaper than renting
Buying a house is now 16 per cent cheaper than renting, according to new research by Halifax.
While the company recently revealed that mortgage rates were at their lowest level for 14 years, it also found that purchasing a property is over £100 cheaper than leasing it off a landlord.
The firm's Buying vs. Renting Review found that the typical monthly cost of buying a three-bedroom house was £600 in December 2011, while the average rent on the same property was £716.
It shows a massive turnaround from 2008, when buying was 29 per cent more expensive than renting, while in the past year buying costs fell by five per cent.
Martin Ellis, housing economist at Halifax, said: "The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates." More »
By Marianne Straker, Home Insurance - Mon 30 Jan 2012
Household wealth shows north-south divide
There is a north-south divide in household finance, according to new research by the Consumer Credit Counselling Service (CCCS).
Officials at the organisation described the new figures as "alarming" but highlighted that London was an exception to the rule. The analysis found that 1.8 million households (8.9 per cent across the UK) spent more than 25 per cent of their income paying back debts.
Areas with the highest level of unsecured loan repayments tended to be in the north of England with regions such as Yorkshire and the north-east topping the list for above-average rates.
Recent research by Aviva found that household debt was once again on the rise with 62 per cent of UK families worrying about the increased cost of living.
CCCS bosses also found that despite lower house prices in the north of England, Scotland, Wales and Northern Ireland many struggled with mortgage repayments.
Lord Stevenson, chairman of the organisation, said: "Households are struggling right across the UK, but northern regions are in a far more perilous position than elsewhere." More »
By Marianne Straker, Home Insurance - Fri 27 Jan 2012
Price of food and utilities top worry list for Brits
UK consumers are more worried about the cost of utilities than they are about mortgage payments, according to new research by Moneysupermarket.com.
The price comparison website found that Brits are ten times more concerned about food, bills and petrol prices than they are about other issues such as home insurance or rent fees. A report by the site found that 43 per cent of people named rising bills as their main financial worry.
Food bills also ranked high in the list with 34 per cent of people highlighting it as a worry whereas 33 per cent blamed high petrol prices.
Despite the Council of Mortgage Lenders revealing that borrowing reached £37.4 billion over the past 12 months consumers are more concerned with the daily cost of living.
Clare Francis, consumer finance expert at Moneysupermarket, said: "Over the past twelve months, UK households have experienced a sharp increase in the cost of living with rising fuel, petrol and food prices having a major impact on the financial state of the nation, so it is no surprise that they make up the main financial concerns for the year ahead." More »
By Marianne Straker, Home Insurance - Thu 26 Jan 2012
Home insurance rates continue to increase
Rates on home insurance have continued to rise, according to new research by the AA British Insurance Premium Index.
The first part of 2012 has seen adverse weather conditions, with storms battering Scotland, Northern Ireland and northern England. AXA insurance suggested that the coming year would see an increase in home insurance claims.
Bosses at the company highlighted major events such as the Olympics, the Queen's Jubilee, Euro 2012 and unsettled weather could see complaints rise. Now, the AA has shown that content and combined policies rose by 11 per cent over 2011.
Building premiums rose by 3.1 per cent, culminating in an annual increase of 9.5 per cent, whereas content rates jumped by 4.4 per cent adding to a yearly rise of 11.2 per cent.
Simon Douglas, director of AA Insurance, said: "Storm damage, flooding and burst pipes are top of insurers' list of worries, following two harsh winters and increasingly frequent severe weather. In addition, economic pressures result in more theft claims." More »
By Marianne Straker, Home Insurance - Thu 19 Jan 2012
UK households boosted by falling inflation rates
Falling inflation rates could signal an improved confidence for UK households as property prices are set to decrease.
The Bank of England announced that the rate of inflation fell to 4.2 per cent from 4.8 per cent in November and analysts at Moneysupermarket.com believe this is good news for UK property investors.
In 2011, many were battling against the rising costs of properties with many first-time buyers unable to get their foot on the housing ladder.
However, the insurer revealed that the main strain on consumer finances was the high petrol prices with 42 per cent of people surveyed highlighting this as their main concern.
Kevin Mountford, head of banking, at Moneysupermarket.com, said: "The rising cost of living has had a major impact on UK household budgets for the last 12 months and signs that this is beginning to reduce is very welcome indeed. However, despite inflation falling month on month, prices are still high."
A recent survey by housing company Rightmove showed that despite mortgage rates being the lowest in 14 years only a fraction of houses have come on the market since the turn of the year. More »
By Marianne Straker, Home Insurance - Wed 18 Jan 2012
Homeowners name flood damage as biggest concern
Home insurance policyholders have named flood damage, leaks and storms as the risks that raise the biggest concerns.
A new study by insurers Deloitte found that after the recent storms people are mainly concerned about water damage in their home which can cost thousands of pounds to repair.
The company believes that the housing market will make a profit in 2011 after the loss it recorded in 2010. However, the research showed that household insurers are planning to increase the price of houses by between five and ten per cent in the coming year.
James Rakow, insurance partner at Deloitte, said: "The outturn for 2012 will largely be determined by the weather and the storms that hit Britain in the first few days of January act as a reminder of the huge losses that natural perils such as storms and floods can produce." More »
By Marianne Straker, Home Insurance - Tue 17 Jan 2012
Dining room ditched for open floor planning
Many homeowners are ditching dining rooms in favour of open floor planning, according to Halifax home insurance.
The company found that half a million homes in Britain could see a second reception area as owners have decided to knock through the connecting wall between the lounge and dining room.
However, Halifax warned that homeowners could be putting their cover at risk if they do not declare modifications on their property.
Ditching formal dining rooms has come about because fewer families sit down to proper meals together, many preferring to snack in front of the television and eat from their laps.
Mat Barnes, of Spire Estates, Chesterfield, told the Ilkeston Advertiser: "The way that modern families have changed their living habits has now impacted on the improvements they decide to make to the interior layouts of their homes."
Axa Personal Lines recently revealed that home insurance claims were set to soar in 2012 due to the number of major events such as the Olympics and the Queen's Jubilee taking place in the UK. More »
By Marianne Straker, Home Insurance - Mon 16 Jan 2012
Home insurance claims to soar in 2012
Home insurance claims are set to soar in 2012 due to the number of major events taking place in the UK, according to Axa Personal Lines.
Research by the company found that events such as the Olympics, Euro 2012 and the Diamond Jubilee will mean an increase in people having parties at their own home.
The insurer believes that more family get-togethers will see a rise in accidental damage and losses. For instance, on New Year's Day the company saw a 78 per cent increase in losses.
Direct Line has also reported a 300 per cent rise in home insurance claims after storms hit the British Isles causing damage to properties across the country.
Christine Matthews, head of household claims at Axa Personal Lines, said: "Around 20 per cent of homeowners have no contents insurance leaving themselves very vulnerable in the face of a year of very real increased risk." More »
By Marianne Straker, Home Insurance - Thu 5 Jan 2012
Homeowners urged to protect their property
As storms continue to batter Britain homeowners are being urged to make sure their property is covered. More »
By Marianne Straker, Home Insurance - Wed 4 Jan 2012
Quarter of Brits have not switched and saved in 2011
Over a quarter of Britons did not switch their home or car insurance in order to save money in the past 12 months.
Research by Gocompare.com found that 26 per cent of UK consumers have not switched their policy to 20 of the more attractive financial offers in the past year but 65 per cent of insurance holders are expecting a difficult 2012.
The results found that eight per cent of the respondents - two million Brits - said that their main concern was maintaining their rent or mortgage repayments with a further 22 per cent blaming the rise of bills and living costs.
John Miles, business development director at Gocompare.com, said: "Nearly two-thirds of Brits are expecting 2012 to be a very difficult year for their finances, but our research shows that millions of consumers could be missing out on hundreds of pounds worth of savings by not reviewing their finances and switching to better deals on some of the most common financial products."
MoneySupermarket.com said that British consumers will make clearing debt from credit cards their main priority in 2012. More »
By Marianne Straker, Home Insurance - Tue 3 Jan 2012
Brits worry about their finances every day
Over 15 million Britons worry about their finances every day, more than relationships, health and jobs.
According to MoneySupermarket.com people in the UK have concerns about home insurance rates and the cost of living more and more with the country's economy struggling.
The survey found that over a quarter (23 per cent) of people stress over their future financial situation with 21 per cent worrying about their current personal finances. It was also revealed that the main concern for people was the rising cost of petrol (42 per cent) followed by rising bills (21 per cent) and debts (17 per cent).
Kevin Mountford, head of banking at MoneySupermarket, said: "It's not surprising that people blame financial anxiety as a top cause of stress given the difficult economic environment and the rising cost of living, and we can expect next year's outlook to be just as tough, if not tougher."
It was recently found that as a result of the rise of taxes the average middle-class family paid £1,650 more in 2011 than they did in 2010. More »
By Marianne Straker, Home Insurance - Tue 3 Jan 2012
People prefer a 'big night in' on New Year's Eve
Whilst thousands lined up along the River Thames to see London welcome in 2012 it has been revealed that many would prefer to have a "big night in" as opposed to braving the queues of New Year's Eve.
In the seventh New Year survey by the Post Office Home Insurance it said that 36 million people would prefer to stay in compared to 72 per cent in 2010 and 55 per cent in 2007.
Experts believe that money is the main factor in people's decision although it found that the average household planning a party will spend £95 on food and drink compared to the £48 average spend for those planning on heading out to celebrate.
Gerry Barrett, Post Office Head of Home Insurance, said: "New Year's Eve can end up being a costly night and it can be even more costly for those who plan to stay in. 'Come Dine With Me fever' is apparently gripping the nation but many hosts could see their bills mount up as they look to impress their friends."
People attended events across the UK, including 80,000 people in Edinburgh attending the Hogmanay street party celebrations. More »
By Marianne Straker, Home Insurance - Tue 3 Jan 2012
Fuel poverty could increase the risk of damage to homes
Homes in Wales could be at an increased risk of damage from harsh winter weather this year, as consumers in the country are being hit hardest by fuel prices. More »
By Marianne Straker, Home Insurance - Fri 2 Dec 2011
Tenants need to know their responsibilities
Home insurance customers who are living in privately rented accommodation should make sure they know what their responsibilities are in winter, according to an expert. More »
By Marianne Straker, Home Insurance - Wed 30 Nov 2011
Brits put homes at risk in winter months
Many home insurance customers are putting their house at risk of damage from winter conditions by not preparing adequately and installing protection measures from the weather. More »
By Marianne Straker, Home Insurance - Mon 28 Nov 2011
3 million suffered home damage last winter
The big freeze of late 2010 and early 2011 saw damage caused to up to three million houses in the UK by extreme winter weather. More »
By Marianne Straker, Home Insurance - Fri 25 Nov 2011
