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Paying less for home Insurance
When you want to protect something in your life it
doesn’t come much bigger than your home ....more
Consumer - Guides to Insurance
Lenders always insist you insure the property so
that if anything happens they'll be able to get their
money back ....more
Crime Prevention
You can insure the contents and the buildings of your home which should help give you peace of mind ....more
Insurers count the cost of high winds
Adverse weather has prompted a storm of calls to insurance companies which are now braced for bills running into hundreds of millions of pound ....more
Homeowners 'in denial' over flood risks
Homeowners who live in flood risk areas are in denial about the serious damage that could be done to their property ....more
Insurance claims feel the heat
The government has welcomed an insurance industry report that says climate change could treble claims for storm and flood damages by 2050 ....more
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Paying less for home insurance
When you want to protect something in your life it doesn’t come much bigger than your home and your possessions. Your largest single purchase and your biggest financial commitment is likely to be your home, so it sensible to protect your bricks and mortar and what is inside against the worst. From fire to flood, storm to subsidence, loss of possessions to legal liabilities, you cannot afford to cut corners when it comes to safeguarding your home and its contents. Reducing the risk of fire, flood damage and burglary can mean cheaper insurance. While household insurance should be a "must have", you can maximise your protection and minimise your costs by taking some simple precautionary measures.
Getting the best deal
The most important thing is to get the right level of cover in the first place. It is a false economy to go for the cheapest policy at the expense of the full cover you need. While most buildings and contents policies will cover the same "core" risks, terms and conditions will vary, so start by assessing the risks you want to protect against. A local insurance broker can help to assess your needs. For example, the level of alternative accommodation costs that will be paid will vary between policies. This can be very important if you suffer a flood or serious fire, when you may be out of your home for a number of months.
Reducing risks
Since premiums are based on risk, reducing the risk of fire, flood damage and burglary can mean cheaper insurance. Some straightforward measures you can take against fire and burglary loss include:
Fit approved locks to doors and windows. The level of security will depend on the type of doors and windows, so talk to insurers first. Do not forget that in some cases (such as if you live in an area with a high crime rate) insurers will require a prescribed level of security to be installed before they can consider offering cover.
Intruder alarms. Installing an approved alarm can typically reduce your premium by between 5-15%.
Occupancy. Reflecting the fact that most burglaries occur during the day some companies may quote cheaper premiums if someone is usually at home during the day.
Fit a smoke alarm. With the costs of domestic fires rising, some insurers may offer cheaper premiums on both buildings and contents policies if you fit smoke detectors.
Reducing flood damage risks
If you are one of the two million homeowners whose home is vulnerable to flooding, taking steps to reduce the risk of flooding, or the cost of damage if it does occur, can make house insurance more readily available and possibly cheaper.
If your home is particularly vulnerable you should consider:
Replacing timber floors with concrete and cover with tiles; replace chipboard/MDF kitchen and bathroom units with plastic equivalents; replace gypsum plaster with more water-resistant material, such as lime plaster move electrical points well above the likely flood level.
Remember that these changes will usually pay for themselves by the reduced damage, often from a single flood.
Many insurers insist that window locks are fitted You should speak to your insurer or broker before taking on these more costly projects to assess their benefit to you.
Shop around
Household insurance is a competitive market, with the cost of both buildings and contents insurance varying between insurers. You can buy policies from your mortgage provider, bank, and an insurance broker. Even some supermarkets are getting in on the act. The average cost of a buildings insurance policy stands at £209, and has risen by only 2% over the past ten years. The average cost of contents insurance is £152 and has risen by 5% over the same period - still a very modest increase in view of the cover provided and amounts which insurers pay out. The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.
Consumer - Guides to Insurance 
Lenders always insist you insure the property so that if anything happens they'll be able to get their money back. Unless you have no choice as to the company with which you take out home insurance, do shop around. The following tips should help you to decide who to choose.
Difference in costs You'll find a big difference in the cost of home insurance. Normally policies put forward by lenders will be relatively expensive for buyers in terms of insurance premiums. Lenders may also look for you to insure your life to at least the value of your loan so that should you die the loan will be repaid in full by your policy. You'll need to have the paperwork to prove cover exists.
Ordinary repayment mortgages In the case of ordinary repayment mortgages, lenders may insist on the borrower(s) taking out a mortgage protection policy to cover the amount of the loan. Such a policy guarantees repayment of the balance outstanding on the mortgage in the event of the borrower's death.
Contents insurance It's worthwhile looking at contents insurance. Be sure your policy covers the contents while you're moving house. Remember to transfer the policy to your new address at the right time. Print the BBC Homes Buying checklist to help you keep track of every stage.
Crime Prevention
You can insure the contents and the buildings of your home which should help give you peace of mind.
Here's a rundown of what you should be looking for.
As well as cover for theft and malicious damage, your contents policy will insure you against fire, flood, storm damage and other such "risks". You can't usually pick and choose which risks are covered as they come as a package. In fact, there are usually many other types of cover thrown in, such as "personal liability" - useful if you damage someone else's property and they sue you, for example. So it's well worth checking the policy wording to see exactly what's covered.
Single items over a certain value may have to be named on your policy, so again, check your policy and tell your insurer if you have anything that's particularly expensive like a computer or particular antique. Some items, usually called "valuables and portable possessions" by insurance companies, are covered while away from your home. These will include things like jewellery, clothes and electrical equipment. This can be useful if you have children at university, but check out exactly what is and isn't covered, and for how much. Some companies offer special policies for student's possessions.
Insurers expect you to take "reasonable care" of your belongings. If you leave your house unlocked or valuables out in the open they probably won't pay a claim. It's hard to know exactly what is meant by "reasonable care" so ask your insurance broker or representative if you're uncertain. Any unresolved disputes can be taken up with the Financial Ombudsman. Are you sure that you have got enough insurance cover? It's never easy working out how much cover you need, so we've created a handy calculator. Just select this link to go there now.
Home security Some insurance companies will also require that your house meets a certain standard of security, sometimes called the "minimum security condition". If your house does not meet the standard they may refuse to pay a claim. This standard will include measures such as the kind of doors and locks you must have and might ask for window locks or other security devices. Check your quote and policy very carefully to ensure you meet the criteria you have agreed upon. On the other hand, many companies will offer discounts if your house is well secured. Certain types of alarm system or membership of a neighbourhood watch scheme could get you a lower premium. Remember to ask. Although cover is often based on the number of bedrooms in your home, it's worth making sure you insure for the right amount. It's also a good idea to make a property list of everything you own, which will help if you ever make a claim. If you are unfortunate enough to suffer a burglary, or theft, report it to the police straightaway who will give you a crime number. You will need the crime number for your insurance claim. Don't delay in contacting your insurer or this could influence any reimbursement.
Insurers count the cost of high winds
Adverse weather has prompted a storm of calls to insurance companies which are now braced for bills running into hundreds of millions of pounds as householders race to repair damage to roofs, chimneys, fences and broken windows.
Norwich Union, a subsidiary of Aviva which insures one in five homes, said that it had received up to four times more calls than usual on the day of the storms while Royal Bank of Scotland, owner of Direct Line and Churchill, is increasing staff in its call centres. The Association of British Insurers, which represents the country's insurance companies, gave an early estimate for a bill in the "low hundreds of millions" of pounds. "It is too early to tell [exactly]," an ABI spokesman said.
Assessing the extent of the damage could take a number of weeks as insurers will need to send loss adjusters to visit the most severely damaged properties. More mundane claims, such as for broken glass or a few missing roof tiles, will be easier to process and are less likely to require an assessment by a loss adjuster. Making estimates of the cost of the damage are also made more difficult because the storm was widespread and not isolated in one area. Yet, even though the storms caused havoc and claimed at least 14 lives, insurers do not believe the financial bill will be as high as other severe weather conditions.
According to the ABI, the major storm in 1990 caused a clean-up bill of £2bn while the storms of 1987 - most clearly remembered for the damage caused to trees in Seven Oaks, Kent - cost £1.5bn.
Homeowners 'in denial' over flood risks
Homeowners who live in flood risk areas are in denial about the serious damage that could be done to their property, the head of the Environment Agency said today.
The warning, at the launch of the agency's annual flood awareness campaign, comes as the country braces itself for storms later in the week.
Baroness Barbara Young, the agency's chief executive, said only 31% of homeowners living in flood risk areas had taken steps to find out if they are at risk, and just 10% had signed up for the free flood warning service on offer. The agency said 2.3m of the 25m homes in England and Wales were in flood risk areas, with property, land and assets worth £237bn in danger of ending up under water. The annual cost from flooding is £1bn and is expected to increase if the flood risk continues to be ignored. Rising sea levels and more extreme weather conditions expected to result from climate change will also increase the number of homes at risk. Last week, research by the Association of British Insurers (ABI) showed that a 0.4 metre rise in the sea level would almost double the number of homes in danger in eastern England. The Environment Agency said being flooded could be 30 times more costly than being burgled. While repairing damage and replacing items lost in a burglary costs an average of £900, putting things back to normal after a flood costs an average of £28,000, it said. Baroness Young said a flood was "a perfect burglar - it enters your house uninvited and leaves nothing behind except distress and misery." She added: "We all have locks on our doors and many of us install alarms to protect our home and possessions against burglary. "However, surprisingly many people take no steps whatsoever to safeguard their home against the increasing risk of flooding. "Clearly, some people living in flood risk areas are in denial about the dangers flooding can cause." The agency said that while there was no way homeowners could prevent floods, there were ways for them to reduce the financial and emotional cost of such an event. It recommended that homeowners find out if they are living in a flood risk area, and if they are that they make sure their buildings and contents insurance would cover any damage, and to sign up for flood alerts. It also advised people to prepare a flood checklist and look into ways to protect their homes. The ABI said better public awareness of the risks needed to be matched by government investment in flood defences. Jane Milne, the ABI's head of property, said: "The Environment Agency's assessment of the number of properties at risk of flooding - 570,000 - has more than doubled in the past four years as we understand more about the flood risk. Yet spending on flood defences is now falling in real terms. "We believe that flood defence spending needs to rise by 10% a year to £750 million by 2011. This will give those vulnerable to flooding the protection they need, and the flood insurance cover they depend on."
Flood risk - Prepare for flooding
Simple ways to protect your home from flooding Find some quick and easy flood precautions that everyone should take. They will also help if you don't have long to prepare for a flood.
Installing your own flood defences For a little more investment of time and money, you can install your own small-scale flood defences. You can also buy free-standing barriers which help stop water reaching your property.
During a Flood What should you do during a flood, or when you first hear that a flood is about to happen? Look through our check list now, so you'll be prepared if the worst happens.
After a flood Cleaning up after a flood. How to get your home back to normal.
Flooding: a guide for older people Research shows that older people find it hard to cope with being flooded. Even if you haven’t experienced flooding before you should be prepared. Download the leaflet on the next page to help you plan ahead and reduce the risk to you and your belongings.
Flood preparation guide for business Don't let a flood drown your business. Make a plan that'll keep your business afloat if the worst happens. Your business is more likely to flood than to burn down, so it is vital you prepare now.
Insurance claims feel the heat
The government has welcomed an insurance industry report that says climate change could treble claims for storm and flood damages by 2050.
The report by the Association of British Insurers says that weather-related claims on property insurance doubled to more than £6bn between 1998 to 2003, compared with the previous five years. It predicts that claims could treble over the next 45 years.
Environment Minister, Elliot Morley, said the effects of climate change over the next few decades are unavoidable.
'In the UK, we are likely to experience hotter, drier summers and warmer, wetter winters, and weather extremes like the hot summer of 2003 or the heavy rain leading to the floods in 2000 may become more common.'
Government action includes:
* a £100m rise in annual spending on flood defences and the development of a 20 year strategy for managing floods
* adopting the Kyoto Protocol in 2002
* a commitment to reducing carbon dioxide emissions by more than half by 2050
Mr Morley also said that while the government can take action to minimise the effects of heatwaves and storms, 'we need to tackle - via international agreement - the causes of climate change.
"We all know that running a home can be costly
so great savings are essential and helpful
to a balanced home life".
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