|
| |
|
Archive for the ‘Home insurance’ Category
Wednesday, August 10th, 2011
Damage caused by civil unrest should not impact on people making insurance claims, a Zurich spokesman says, but customers should check their policies
Insurers have said they will pay out to customers who have had possessions damaged and stolen in the riots in London and across the rest of the country.
Some policyholders had been concerned that they wouldn’t qualify for a payout because the losses were a result of civil unrest, but insurers said this wasn’t a problem.
Keith Lewis, a spokesman for insurer Zurich, said: “As a customer it doesn’t matter what is happening – the issue of whether it is classed as rioting or civil unrest rises when we as insurers are trying to reclaim costs. It is a back-office issue.”
Lewis said Zurich had sent a team of loss adjusters to Tottenham early yesterday morning, and had more specialists ready to visit the scenes of other clashes.
The Association of British Insurers (ABI), which is currently putting the cost to the industry at “tens of millions of pounds”, urged those affected to call their insurers as soon as possible.
The ABI’s director of general insurance, Nick Starling, said: “We have every sympathy for residents and business owners who have suffered damage to their properties.
“This is a time of enormous stress for them and their insurers will be on hand to answer any questions that they may have.”
Home and business policies
The ABI said standard home insurance policies should cover fire, looting or damage caused, and that many policies would also cover accommodation costs for those unable to stay in their homes.
Most commercial insurance policies would cover businesses for damage to their premises, it said, including interruption to their business.
Some policies also cover businesses which were not damaged, but whose trade is affected by the aftermath. Owners of businesses which were not damaged but are losing income due to denial of access should check their policies.
The ABI said business owners should act quickly, as many insurance policies required claims to be made within a set time period – often just seven days.
Motor and travel policies
Owners of cars damaged in the unrest will be able to claim if they have fully comprehensive cover, but may not qualify for a payout if they have anything less.
Graeme Trudgill of the British Insurance Brokers’ Association said for those with third party, fire and theft cover, the situation would depend on what had happened to their vehicle.
“If someone whacks it with a pole then it is not covered; if they set fire to it, it is,” he said.
One area where things are less cut and dried is travel insurance. A spokeswoman for the ABI said police officers who have to cancel a holiday because they have had their leave rescinded will be covered, but other people may not.
“If someone’s business has been affected, and there is a reason they cannot travel, then they would need to contact their insurer and it would be considered on a case-by-case basis – but even that would not be covered by a standard policy in my view,” she said.
Politicians who have had to cut short their holidays to return to London may also find they are not covered.
Uninsured home and business owners
Under the 1886 Riot (Damages) Act the police are obliged to compensate people who have had their property and/or buildings damaged or stolen during disturbances like those seen this week.
Home and business owners who do not have insurance or are underinsured should make a claim to their local police force.
To make things difficult, claims need to be made in writing and within 14 days of the event taking place. The ABI is calling for this to be extended to 42 days to give people chance to asses how much they have lost.
Anyone affected by the riots could also apply for a crisis loan to help them meet daily expenses while claims are settled. These are loans from the government designed to help people in emergencies.
Posted in Business, Car insurance, Crime, guardian.co.uk, Home insurance, House News, Insurance, Insurance industry, London, Money, Motoring, News, Property, Small business, Travel insurance, UK news, UK riots | Comments Closed
Monday, August 8th, 2011
NUS and Endsleigh remind students going to university to insure their ever-expanding array of expensive, electrical gadgets
Students are taking possessions worth an average of £2,652 to university, reflecting their ownership of an increasing number of expensive gadgets.
According to research by the National Union of Students and insurance provider Endsleigh, more than four out of five students will be taking a laptop to university, 14% will take a desktop computer, and 4% a tablet PC in the new academic year.
The average student carries £1,165 of gadgets including mobile phones, cameras and laptops on their person, a figure which excludes valuables such as jewellery and makeup.
Of the students questioned, 64% took MP3 players or iPods to university, 60% took digital cameras, 39% had hair straighteners and 25% games consoles. The survey also found that every student had a mobile phone, with 59% taking a smart phone. The average students wardrobe was found to be worth £542.
Endsleigh spokeswoman Vicki O’Connell said: “Students are more tech-savvy than ever before, and as lifestyles become more mobile the ‘must have’ items become more portable. It is important to remember that items which are lighter and smaller are also more prone to loss or theft, and that’s why students are more likely to need to take advantage of insurance.”
Students can either protect their valuables through their parents’ home insurance or buy their own policy.
Steve Foulsham of the British Insurance Broker Association said: “If you are living in halls, you need to make sure the cover is appropriate to your individual needs. This will obviously depend on the type of student accommodation. It is important to note security aspects of where a student is staying: if you share premises, insurers need to be aware and comfortable that the room the student lives in is secure.
“In a shared household, adequate locks would be needed. However, in shared residencies or halls the insurers will need to know that there is a high level of security in the building. In order to make a successful claim they may insist there is evidence of force for any theft cover they provide.”
Students who are trying to reduce costs can opt to protect their valuables through their parents’ home insurance. However, the parents must notify their insurers of this, particularly if any of the items are expensive. This could result in an increase in their premium and policy excess, especially if a claim is made.
Foulsham points out that this is a suitable arrangement for students living with their parents: “If a student lives at home they are still part of the family unit, so they are covered. However, they need to make sure they are covered for when they leave the property.”
If a student lives away from home, but still chooses to be covered by his or her parents’ policy, the additional risk of theft or damage will also push up the premiums slightly, Foulsham said. “Students and parents will then have to weigh up the difference of being added to the parents existing insurance or taking out their own insurance, which can be specialised to suit their individual needs.”
NUS president Liam Burns said: “Moving away from home for the first time can mean taking a lot of valuable items with you, and the nature of higher education means students need regular access to expensive equipment such as laptops and cameras.
“Taking precautions against theft and damage can provide you with valuable peace of mind and ensure you are not left out of pocket at a time when money can be particularly tight.”
Posted in guardian.co.uk, Higher education, Home insurance, House News, Insurance, Money, News, Property, Student finance, Students, UK news | Comments Closed
Friday, July 29th, 2011
Endsleigh asked to arrange my contents cover when I move and made it sound like something my letting agent insists on
My husband and I are moving house so, as usual, the letting agents did reference checks, and the company they used was Endsleigh. Since then, both my husband and I have been sent numerous emails, calls and texts from Endsleigh saying “your letting agents have asked us to contact you to sort out your contents insurance”.
They rang today and said “your letting agents [or it might have been landlord, I can't quite remember] have asked us to contact you to arrange your contents insurance for your move to Tooting”.
I said I was quite capable of arranging my own insurance, thanks. “But your agents have asked us to arrange this for you.” I repeated: “No thanks.” “We’ll go back to them and tell them that, then.”
I’m no expert, but this sounds like mis-selling to me as the implication is that I’m obliged to purchase contents insurance off Endsleigh.
In our contract there is no obligation to purchase contents insurance, let alone specifically from Endsleigh – but such was the implication in the calls/texts that I had to physically check our contract to make sure.
I’m fairly sure, were I not quite so savvy on marketing, I’d have just assumed it was part of my contract and let them flog it to me. It this standard practice? CB, Tooting, London
Endsleigh said it was happy to clarify why it approached you, reiterating that it works in partnership with your letting agent, Samuel Estates.
In the tenant reference form that you filled out for Endsleigh, there was a consent box asking whether Endsleigh should contact you regarding contents insurance. A spokesman said he had checked your form, and you had given permission for the firm to get in touch.
The spokesman continued: “I can see that CB was then sent a text message, giving advance notice that Endsleigh would be calling her – or giving her the option to ring us should she wish to set up contents insurance more urgently. We also sent her an email, explaining our partnership with her letting agent and the reason for getting in touch.
“CB subsequently had a telephone conversation with Endsleigh, in which she made clear that she was not interested in our contents insurance cover.
“I would like to assure her that all our telephone sales representatives are given scripts to follow, to ensure compliance with regulatory guidelines, and I am satisfied that our representative acted properly. As she did not express any interest in our product, it was flagged that we should not contact her again regarding it.”
You remain unhappy with this response because it does not address your concern, which is that Endsleigh implied your landlord/letting agent had asked it to arrange this insurance. This seemed to imply that taking it out was in some way mandatory.
We sought clarification from Endsleigh. A spokesman said the firm disagreed with CB and it was clear its service was merely an offer.
We welcome letters but cannot answer individually. Email us at consumer.champions@guardian.co.uk or write to Brignall & King, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number.
Posted in Consumer affairs, Consumer rights, Features, Home insurance, House News, Insurance, Letters, Money, Property, Renting property, The Guardian | Comments Closed
Friday, July 29th, 2011
Endsleigh asked to arrange my contents cover when I move and made it sound like something my letting agent insists on
My husband and I are moving house so, as usual, the letting agents did reference checks, and the company they used was Endsleigh. Since then, both my husband and I have been sent numerous emails, calls and texts from Endsleigh saying “your letting agents have asked us to contact you to sort out your contents insurance”.
They rang today and said “your letting agents [or it might have been landlord, I can't quite remember] have asked us to contact you to arrange your contents insurance for your move to Tooting”.
I said I was quite capable of arranging my own insurance, thanks. “But your agents have asked us to arrange this for you.” I repeated: “No thanks.” “We’ll go back to them and tell them that, then.”
I’m no expert, but this sounds like mis-selling to me as the implication is that I’m obliged to purchase contents insurance off Endsleigh.
In our contract there is no obligation to purchase contents insurance, let alone specifically from Endsleigh – but such was the implication in the calls/texts that I had to physically check our contract to make sure.
I’m fairly sure, were I not quite so savvy on marketing, I’d have just assumed it was part of my contract and let them flog it to me. It this standard practice? CB, Tooting, London
Endsleigh said it was happy to clarify why it approached you, reiterating that it works in partnership with your letting agent, Samuel Estates.
In the tenant reference form that you filled out for Endsleigh, there was a consent box asking whether Endsleigh should contact you regarding contents insurance. A spokesman said he had checked your form, and you had given permission for the firm to get in touch.
The spokesman continued: “I can see that CB was then sent a text message, giving advance notice that Endsleigh would be calling her – or giving her the option to ring us should she wish to set up contents insurance more urgently. We also sent her an email, explaining our partnership with her letting agent and the reason for getting in touch.
“CB subsequently had a telephone conversation with Endsleigh, in which she made clear that she was not interested in our contents insurance cover.
“I would like to assure her that all our telephone sales representatives are given scripts to follow, to ensure compliance with regulatory guidelines, and I am satisfied that our representative acted properly. As she did not express any interest in our product, it was flagged that we should not contact her again regarding it.”
You remain unhappy with this response because it does not address your concern, which is that Endsleigh implied your landlord/letting agent had asked it to arrange this insurance. This seemed to imply that taking it out was in some way mandatory.
We sought clarification from Endsleigh. A spokesman said the firm disagreed with CB and it was clear its service was merely an offer.
We welcome letters but cannot answer individually. Email us at consumer.champions@guardian.co.uk or write to Brignall & King, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number.
Posted in Consumer affairs, Consumer rights, Features, Home insurance, House News, Insurance, Letters, Money, Property, Renting property, The Guardian | Comments Closed
Thursday, July 28th, 2011
Report says fraudulent claims cost insurance industry about £2bn a year and reveals outrageous cases of cheating
Insurers uncovered 133,000 fraudulent insurance claims worth £919m in 2010, meaning the public registered 2,500 fake claims every week – a rise of 9% on 2009, according to figures from the Association of British Insurers. It said the number and value of detected insurance frauds had risen by more than 100% over the past five years.
Fraudulent claims cost the insurance industry an estimated £2bn a year, adding an average £44 a year to the insurance bill for every UK policyholder. The scale of the problem has provoked insurers to set up an insurance fraud register early next year, which will contain details of insurance cheats.
The most common frauds involved home insurance with 66,000 bogus or exaggerated claims discovered by insurers, followed by 40,000 dishonest motor insurance claims. Motor frauds were the most costly, totalling £466m.
The ABI said one claim for back injuries sustained from a fall while working in a nightclub was rejected when Facebook images showed the claimant performing gymnastics and training for a charity run.
A woman’s claim for facial injuries she said resulted from a falling toilet roll holder in a fast food outlet was rejected when it was shown that the holder would have had to have fallen upwards to cause the injury.
A claim for injury said to be caused by falling over a wall was rejected when it was proved that there was no wall at the scene of the alleged incident.
Nick Starling, the ABI’s director of general insurance and health, said: “Fraudsters continually look for new ways to con insurers, so we are upping our game. Early next year, we will be setting up a national insurance fraud register, which will contain details of all known insurance cheats. And at the same time the first ever national police insurance fraud investigation unit will begin its operations, making it harder than ever to commit insurance fraud.”
Glen Marr, director of the Insurance Fraud Bureau said the organisation wanted consumers to report anyone they suspected of committing insurance fraud via its Cheatline: “At the IFB, we have access to a significant volume of industry data, use sophisticated and powerful analytical software, work in partnership with insurers, law enforcement and regulators, and have no shortage of reports being received from consumers of their knowledge or suspicions of those concerned with defrauding the industry, through our Cheatline facility.
“It’s important to underline that some of those concerned with insurance fraud are also involved in criminal activities where there is harm to local communities.”
Posted in Business, Consumer affairs, guardian.co.uk, Home insurance, House News, Insurance, Insurance industry, Money, News, Property, Travel insurance, UK news | Comments Closed
Wednesday, July 27th, 2011
Q I am a landlady and have been renting out my property to four tenants (unrelated individuals) for over 15 years. When it came round to renewing my house insurance policy, I noticed that there was no reference to the fact that I was renting out the property. When I contacted my insurers, they claimed to have no record of me informing them that I would be letting out the property and they sent me a number of questions to answer. They then informed me that they were not interested in renewing my policy.
I am now struggling to find an insurer that is willing to take on the property even though in the 30 years that I was with my previous insurer, I never made a claim. I rent the property out to four graduates who are all currently employed, and the house has not been converted into bedsits. There are fire alarms and a carbon monoxide alarm, and the electricity and gas is certified. There is no security alarm and, as the property is Victorian, the windows are all wooden sash windows (replaced in the last decade).
Do you know of a good insurer that would be willing to take on such a property? Or will I need to make changes such as installing alarms/changing tenants so that they are classified as professionals (I am not entirely sure what is meant by this) or a family? I am really in need of your help as I only have a fortnight in which to find a new policy and I am having no success with my own research. NM
A As a matter of some urgency, you need to find out from your local council whether you need a property licence because the property you let is a ‘house in multiple occupation’ (HMO) as you are letting to four unrelated individuals who share kitchen and bathroom facilities. You are required by law to have a licence if an HMO is over three storeys high or let to five or more people but local councils can also require a property licence for smaller HMOs such as yours.
If your council does require a licence, you must get one for two reasons. First, it’s a criminal offence not to and second, without a licence, you won’t be able to get insurance for the property.
Because your property is let, conventional buildings and contents insurance is not appropriate. Instead, you need specialist landlord insurance which covers the building, your contents – eg furniture, furnishings, utensils, domestic appliances – (but not stuff belonging to your tenants), public liability and, if you want it, cover for loss of rent if the property is damaged and can’t be let as a result.
Finding this kind of specialist insurance is relatively straightforward. You can either Google ‘landlord insurance’ which brings up a reasonable number of insurers and brokers dealing in this type of insurance or you can use an insurance comparison site such as moneysupermarket.com or gocompare.com.
Posted in Buying to let, Features, guardian.co.uk, Home insurance, House News, Insurance, Letters, Money, Property | Comments Closed
Monday, May 9th, 2011
Failing to use details from Abbey National’s files cost more than £300 in higher premiums
My home insurance with Abbey National was transferred to Santander on the takeover in 2004. Noticing inaccuracies in the description of my property in the most recent renewal notice, I phoned Santander and the premium was reduced by about a third. I discovered Santander had not used Abbey’s correct data on my home but based premiums on its own default data. Santander has refused to compensate me for the overcharged premiums. CMcA, London
I had already asked Santander to comment on your problem when I learned that the Financial Ombudsman was also looking at your complaint. Santander confirmed it had taken a corporate decision to use default details for all Abbey house insurance policies rather than the information on Abbey’s files. At the time customers were asked to report any wrong information which you didn’t do until this year. Through the Financial Ombudsman Scheme, Santander has sent you £3,471 to refund the unnecessarily higher premiums you have paid.
You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.
Posted in Consumer affairs, Consumer rights, Features, Home insurance, House News, Letters, Money, Property, The Observer | Comments Closed
Saturday, April 30th, 2011
Asbestos was only finally banned in 1999 – and few people realise it is present in about half of all residential property
Your home has a 50% chance of harbouring asbestos, which could be lethal if disturbed.
The use of asbestos has been common in the industrialised world since the mid-19th century and it was not until 1999 that a total ban was imposed. Lee Carter, principal director of the consultants WSP Environment & Energy, says that it has been widely used in residential property: “Among private homes, more than 50% are likely to include some asbestos-containing materials.”
While this may sound alarming, asbestos is likely to be dangerous only if it is released into the air and you breathe it in. Then you could be at long-term risk of developing lung cancer, asbestosis or mesothelioma (a cancer that forms in the lining of the chest or abdomen). Experts say that there should be little or no risk if the asbestos is enclosed and left undisturbed but it must be regularly checked for signs of deterioration.
But accidents happen and the previously dormant devil within could be released when “improvement” work is being carried out, for example, or when a burst pipe causes damage to ceilings.
This is what happened to Brian Fitzpatrick, 49, from South Darenth, Kent, who endured the Christmas from hell when he discovered water damage in his house on 22 December. Pipes had burst in the loft and contractors alerted him to the threat of asbestos in the Artex coating on his ceilings. Before the sample results came back, one of the ceilings collapsed and the industrial dryer blew asbestos around the house. Fitzpatrick and his family have had to relocate while repairs and decontamination take place, a process that could continue for several more months.
Although the results of sampling tests indicated a low number of asbestos particles in the air, the family remain concerned for the future. Fitzpatrick, a partner at the building consultancy EC Harris, said: “It’s a nightmare. No one expected asbestos. Emotionally, the experience has been traumatic for all the family but especially for my wife and daughter.”
Fitzpatrick says that his insurer is picking up the £10,000 cost of replacing all 13 ceilings, as well as the cost of air-quality and material sampling tests, and is paying up to £30,000 for the family’s emergency accommodation. The soft furnishings in the house will have to be disposed of under controlled conditions.
But the Association of British Insurers points out that policies will cover removal of asbestos only as part of a householder’s damage claim, and not simply because asbestos happens to have been identified.
In older homes, asbestos is often present in ceilings decorated using Artex textured coating. This is because, until the mid-1980s, Artex was made with white asbestos to strengthen it. However, Joe Oakins, a surveyor at Vintec Environmental Management, says: “We find asbestos products used in the strangest places and sometimes apparently for no reason. Often builders used whatever they had lying around, so you often find off-cuts of asbestos boards used as packing and filler.”
Peter Coling, technical director at Kinleigh Folkard & Hayward Chartered Surveyors, estimates that 30% of asbestos is found in ceiling coatings, 15% in boiler flue pipes and ducts, and 15% in floor tiles. A further 15% is found in areas such as cold water storage tanks, insulation materials, eaves, gutters and rainwater pipes, while 10% is in cement panel ceilings, 10% in outbuildings and 5% in fire protection materials, for example on the underside of integral garage roofs and in cupboards enclosing boilers.
Phil Wright, chief engineer at the inspection and insurance service Allianz Engineering, says: “It is difficult to establish how much asbestos is present in a home without employing a specialist to undertake a full inspection.” Samples need to be taken for analysis at a laboratory approved by the United Kingdom Accreditation Service.
Debbie Hales, director of Asbestos First, one of 450 licensed removal firms in the UK, says: “With textured coatings you have to take [samples] from different locations. It can be free of asbestos in one part and not in the next because of the way it was manufactured.”
Hales says that the cost of a sampling visit should be about £150 plus VAT. If any additional samples are required during the visit, expect to pay about £20 plus VAT per sample. To remove an area of textured coating, such as Artex, containing asbestos costs about £1,200 plus VAT for up to 20sq m, including disposal and air-quality tests.
Posted in Features, Health, Home improvements, Home insurance, House News, Money, Property, Society, The Observer | Comments Closed
Tuesday, April 26th, 2011
Insurers consider town high-risk despite low crime levels and no evidence of weather damage to properties
What have the residents of Dorking done wrong? In the past 14 months, they have suffered the biggest increase in the cost of home insurance premiums of any town in the UK, up by an average of 46% from £119 to £174.
Product comparison site moneysupermarket.com, which has analysed 3.4million building and contents insurance quotations, said the most likely factors causing this include the cost of repairs from extreme weather damage, an increase in crime levels and heightened cases of fraudulent claims.
But according to the crime figures on police.uk, the residents of Dorking enjoy enviably low burglary rates, with just five break-ins in January and February this year, and only four in December (when the website started collecting data). In contrast homeowners in Balham, who have seen insurance costs rise by 32% from an average of £155 to £205, suffered 96 burglaries in February, 84 in January and 65 in December.
A spokeswoman for the Met Office said Dorking had not experienced heavy rain leading to flooding or particularly high winds last year – the highest were gusts of 45mph on 11 and 12 November. “It was extremely cold on the 6th and 7th of January, with a temperature of -10 degrees that night in Dorking, so homes may have suffered burst pipes after that,” she said.
But Adrian Webb, spokesman for Esure, said the insurer which is based just four miles from Dorking had found no evidence of damage resulting from burst pipes: “Dorking sits in a frost pocket and claims for water damage caused by burst pipes can be worse than those for flooding: if you have four or five it can add up to £500,000 and that would have a knock-on effect on insurance premiums in that postcode area.
“But we’ve looked at all the postcodes for Dorking and see no evidence of this happening. There’s a slightly raised risk of subsidence in three postcodes, but otherwise Dorking is a fantastic place to live insurance-wise.”
Julie Owens, head of home insurance at moneysupermarket.com said that while Esure had a very positive view of Dorking, more than 70 insurers were included in the survey, and it was clear some felt differently: “The residents of Dorking haven’t done anything wrong, but this does show the importance of shopping around for the best quotes.
“If your property is classified as being in a ‘high-risk’ area it will be reflected in your insurance premiums. Living in a more affluent area will also increase premiums as property and contents values will generally be higher. Insurers use postcodes as a part of the overall risk factors when calculating premiums. Although there is very little you can do about the postcode in which you live, except move house, there are steps you can take to reduce your premiums, such as, installing a good home security system and security lighting.”
Owens also says homeowners should weigh up the immediate benefit of claiming against the long term effect on insurance premiums. If the claim was a small one, it might prove cheaper for the homeowner to bear the cost rather than seeing their premiums go up for the next few years.
Edinburgh homeowners in the EH9 postcode district have seen a 45% increase, with premiums rising from an average of £144 to £208, while in Milngavie, Glasgow, home insurance costs have gone up by 40% from £129 to £181. London has also experienced hefty increases with Mill Hill, Battersea, Kennington, Kings Cross and Islington in addition to Balham all making the top 20 of postcode areas with the biggest premium increases.
Posted in guardian.co.uk, Home insurance, House News, Insurance, Money, News, Property, UK news | Comments Closed
|
|
|
|
|
|
