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Archive for April, 2011

Dorking homeowners experience high insurance hikes

Thursday, April 28th, 2011

As homeowners in one Surrey town find themselves having to spend more time than usual on home insurance comparison sites to find cheap home insurance, the whole question of how insurers set their premiums is once again brought up.

Massive increase but why?

The Surrey town of Dorking has been revealed as the town that as seen the biggest increase in home insurance online quotes over the last year. The poor homeowners of Dorking have, according to a well known online comparison site, Moneysupermarket, seen their premiums rise from £119 to £174, a massive increase of 46%. The real problem is no one can explain it. A spokesman for the site that came up with the figures explained that the rise could be explained by a combination of factors, listing bad weather events, high crime incidence and high levels of fraudulent claims, however, the statistics don’t back that up.

No increase in house crime

The website police.co.uk that was launched in a blaze of publicity just before Christmas and claimed to give the public more insight into the levels of crime in their own area shows very little activity for Dorking at all when it comes to house crime. In the three months from December to February there were just 14 burglaries in Dorking, bad enough, you might say but nowhere near a crime wave in a town with a population of 170,000 people.

Weather patterns don’t offer a clue

Investigations at the Meteorological Office show that Dorking suffered the same sort of winter that Surrey as a whole shared, it was cold! But no colder than anywhere else in the area, nor did it suffer freak high winds, storms or lightening strikes out of the ordinary. Further enquiries reveal that insurance companies recorded no significantly high claim pockets in the area.

Residents may have to look elsewhere

There is no doubt that insurers use post codes as one of their tools to work out risk assessment factors and although crime and weather don’t appear to be the cause of the premium hikes, being a Surrey town, Dorking will have its above fair share of wealthy inhabitants, so perhaps that is the reason. No one can be sure, but it is for sure that Dorking homeowners will have to look at saving money on their insurance in other ways. They could of course raise the excess allowance on their policies, they could install security measures around the property, and they could spend more time comparing quotes from a different site.

Tags: cheap home insurance, high insurance hikes
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Now is the time to check your heating system works

Tuesday, April 26th, 2011

At a time when many households in the country prepare to switch off their central heating systems as the early spring sunshine warms up their homes, few will consider maintaining the radiators and pipe work, but they should. Many people only think about their heating when it goes wrong and by then it is often too late. A cold house or even worse a leaking radiator that leads to a household insurance claim can be avoided by a little forethought and planning.

There are many simple things you can do to solve the problems with a central heating system before arranging an engineer visit or purchasing a new unit.

System running hot and cold

The most common problem is that your radiator is hot at the bottom but cold at the top. It means that air is trapped in the system preventing the efficient circulation of the hot water, so you need to bleed the radiator. You need a radiator-bleeding key which you can buy at DIY store. There are sophisticated automatic bleeding keys which cost around £10. I bought a manual bleeding key at a DIY shop for £1.99 which works perfectly. It is very easy to bleed a radiator and if you are not sure there are many how-to videos posted on YouTube and other DIY websites. You only need to bleed it once a year or so. This simple operation can save you a couple of hundreds on your energy bills.

Leaky valves can be sorted out

The other common problem is radiator leakage. Sometimes, especially in winter when the heating system is in constant use the pipes just wobble and the nuts and screws loosen which may cause a small leakage. In some cases the leakage might be temporary and stop in a couple of days – it happened to one of my radiators. If not you need to get a spanner and tighten the gland-nut and the cap-nut. If it still does not stop the leak then you can try applying PTFE tape down into the valve spindle, which can be done without draining the system. Again, you can find many video instructions on the internet.

When all else fails make sure you are covered

If the above methods fail then it may be time to call an engineer. It is worth watching out for leaks and checking radiator temperatures from time to time. It is also worth bearing in mind that central heating systems are made to last a long time and should do so. Many homes still house radiators and pipes that were installed in the 70s and 80s– and they are still in perfect working order.

It is always a good idea to make sure your home insurance broker includes heating cover in your policy as it can often be an emergency situation when the home loses all heating options, and that is why the system should be sorted out now.

Tags: heating system, Home Insurance, household insurance
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Banks shocked by High Court findings

Thursday, April 21st, 2011

Homeowners across the UK will have cause to look carefully at any past loans or purchases they have acquired, as a High Court ruling on Payment Protection Insurance (PPI) made retrospective claims on the mis-selling of such policies a possibility for many consumers.

How it should work

PPI is unlike most other insurance products but millions of policies have been sold over the last few years. Unlike a conventional home insurance policy PPI was often sold to customers signing up for loans without them grasping the fact that they were really purchasing a product. PPI basically covers a person’s loan/purchase repayments if they become sick or unemployed. It will cover the cost of repayments if the purchaser suddenly finds themselves out of work or incapable of work due to an illness.

Sold to the wrong people?

There is no doubt that like any good insurance products it can be very welcome in times of an emergency. The big problem with PPI is how it was sold! Banks and other loan companies have been accused of selling the PPI product to people who really had no call for them but did not really appreciate the fact.

Banks argument rejected

In a ruling today the High Court rejected an argument put forward by the British Bankers Association (BBA) that the recent rules update by the Financial Services Authority and the Financial Ombudsman Service were unfair because they were retrospective. Importantly, the rules also stipulate how the banks should deal with past cases of potential mis-selling of PPI, a decision which could cost banks billions of pounds.

The right of appeal

The banks have 21 days in which to appeal against the reviews findings and it is for sure that is exactly what they will do. In the meantime homeowners who think they have been mis-sold PPI in the past should look for any saved documentation of the loans taken out. There is a chance they did indeed sign for PPI without knowing it, in which case they may have a claim.

Compensation could amount to billions

As experts reckon the average claim could easily be £1000, and the total run into billions, some homeowners may get enough cash returned to sort home insurance costs and possibly other insurance costs out for the next year.

Tags: high court, Home Insurance, house insurance
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Copper thefts now spread across to the USA

Tuesday, April 19th, 2011

It appears that when the price of products bought on the global market go up in value then the crimes that people are willing to commit to get hold of the products also goes global.

Homeowners targeted by thieves

The price of scrap metal and copper in particular has soared over the last 12 months leading to homeowners in several parts of the country making claims on their household insurance policies as burglars have stripped their homes of copper piping and wiring while they have been away. Apparently the same thing is now happening in the United States of America (USA).

Police forces in the UK have been inundated with reports of copper stolen from buildings of every description. At first the thieves concentrated on big buildings such as churches, schools and other public buildings as well as the wiring alongside the UK’s railway network. However, as the price of copper has gone up the thieves have turned their attention to ordinary run of the mill homes.

USA homes suffering same fate

A gang of thieves recently arrested in Reynoldsburg, Ohio, had been plying their trade in several states before being brought to book. In common with homeowners in the UK, American families are contacting local tradesman and sometimes emergency services to homes that have seen plumbing pipes, air conditioning wiring and hot water tanks ripped from their foundations.

Cost is much more than the gain

Of course the monetary gain for the thieves is nothing compared to the loss encountered by the families violated by the crimes. The damage caused by water leaking into a home where electric cables have been exposed can be catastrophic and home insurance companies are now handling claims everyday from such scenarios. The claims on both sides of the Atlantic will run into hundreds of thousands of pounds.

Neighbourhood watch encouraged

Police in the UK have requested householders to be vigilant about their security when they are at home, but be extra careful when they vacate their property for any length of time. They are asking the public to help each other out this Easter by keeping an eye on neighbouring properties when they know people are on holiday. Homeowners are reminded that it doesn’t take much time for an undisturbed thief to find a way into most houses, but a light or an alarm can usually persuade the criminal to go elsewhere.

Tags: copper theft, Home Insurance
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Steady increase in the price of home insurance

Thursday, April 14th, 2011

In news that will cause little surprise to hard pressed homeowners anywhere in the UK, a recent survey has confirmed their assumptions. Homeowners looking for the best home insurance deals will find their project a little more difficult this year as a leading insurance company provides evidence that policy premiums have increased in the first quarter of 2011.

Increase across the board

The increase applies to both building and contents insurance, with buildings cover increasing less than that of contents cover. The complicated system used by the provider, involved working out the average of the three lowest quotes provided to each separate researcher working on the survey. When the figures were collated the cost of a buildings insurance policy averaged out at £147.29 and contents cover came in at £76.39, increases of 2.7% and 5.5% respectively.

Experts impressed

Experts in the industry said the figures were far better than they expected and certainly far better than the increases consumers are experiencing when looking for car insurance. One industry insider said that considering the amount of claims most insurers had experienced during one of the harshest winters for 50 years, the increases were more than acceptable, they were very good. Apparently the industry had been hit for £900 million in December alone.

The increases although appearing slight over the first quarter of a year don’t hold up so well when compared to the price of the same policy in March 2010. The difference then becomes more marked, buildings having increased by 13.6% and contents by 11.9%.

Good value for peace of mind

Burst pipes and other winter emergencies also have an effect.

Another statistic revealed by the survey was that the average claim for winter damage was over £2,000, and when this is taken into account then perhaps a figure of less than £80 for the peace of mind of knowing you are covered by home owner insurance is worth it. Worryingly though, Government figures suggest that almost a third of the population don’t bother with household insurance at all. Surely this works out to be a false economy in many circumstances, especially as flood events seem to be more and more common throughout the UK.

Fraudsters add cost to everyone

Another worrying aspect of the cost of insurance is that insurers reckon fraudulent claims increase the price of premiums for everyone by over £40 per annum, a situation that simply must be stopped.

Tags: Home Insurance, home insurance prices
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Homeowners wait on inflation figures

Tuesday, April 12th, 2011

Homeowners already faced with mounting expenditure on home expenses ranging from household insurance to food and drink, will be nervously awaiting news on the inflation rate for March, which is due to be released by the Office for National Statistics (ONS) around lunchtime today.

Status quo predicted

Experts are predicting that figures will be very much in line with those of February, which showed the Consumer Price Index to be 4.4 %. If so, homeowners can be sure that the highest level of inflation since the bottom of the recession in 2008 will put even more pressure on the Bank of England (BoE) to raise interest rates next month.

Mortgage increase could be tipping point for many

Spring 2011 really is proving to be a tough time for the majority of households in the UK. If the BoE do raise rates next month then the mortgage providers are sure to follow. The result could easily tip many precarious family incomes over the edge.

Already faced with record high fuel bills, a hike in their mortgage payments could prove disastrous for some family budgets. Unfortunately interest rates are not the only black cloud on the horizon, rumours abound that utility companies are set to announce massive price hikes this summer that will put all other price increases in the shade. Talk of bills going up by over 10% is common place and it sounds like the rumour mill is just the utility company’s way of preparing the ground for the announcement.

Bank reform paid for by the public

On top of this, City insiders are predicting that the Independent Commission report on Banking will give banks the green light to extract from customers on the retail banking side of the business extra charges to fund the changes demanded by the Commission. Estimates of around £100 a month more on a £120,000 mortgage are being bandied about by observers.

Is there a silver lining to the black cloud?

So is there any good news around for the hard pressed homeowner? Well perhaps there is a little good news out there. First of all consumers can often find the internet can be very helpful in cutting bills. The proliferation of comparison sites on the web means that with a little bit of time and effort homeowners can find items such as cheap home insurance and cheap groceries, both of which will be a good help to any budget.

Secondly the abysmal retail sales figures for March could also actually help consumers. It sends a signal to the Government and BoE that the general public really is feeling the pinch and that any increase in interest rates may send many businesses to the wall. There are still many in the Finance Committee of the BoE who want to keep interest rates on hold until inflation hits 5%. Many will hope that they win the day when it comes to the next vote.

Tags: Home Insurance, inflation figures
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Home finances under scrutiny as Britons feel the bite

Thursday, April 7th, 2011

As the austerity measures introduced by the Coalition Government continue to bite, homeowners across the UK are becoming more aware that their monthly income is being squeezed from all directions. Many households are now asking themselves what they can and can’t afford. It is at times like this that the value of household insurance becomes a matter of debate.

Britons worse off

A recent survey by a financial institution in the UK showed that for the first time in many years the average person in the UK had considerably less disposable income in their pockets. The results of the survey came as a shock to many financial experts but possibly not to householders in the towns and cities of Britain.

The increase in VAT, the exorbitant price of fuel, the increasing price of food commodities in the shops and the insidious, ever increasing, advance of hidden taxes are creating a crisis for lots of families. Many now have to question every item of expenditure leaving the family wallet.

A risk worth taking?

In a situation like this it is natural for people feeling a financial squeeze to question the cost of their insurance cover. Of course motor insurance is required by law, but other kinds of insurance most certainly are not. It is also an expenditure that you see nothing for, unless of course you have need to claim and that really is the nub of the question. Are you prepared to lose everything?

Disaster does strike

It may sound a little dramatic but that really can be the outcome of a property without home insurance. We read every day about disasters in other parts of the world and in our hearts thank our lucky stars that we live in the UK, but disasters in the UK happen every day on a smaller scale. House fires, floods, lightening strikes, explosions and other rare occurrences completely destroy homes in Britain every year, and without some sort of insurance cover those poor householders are left with nothing. It is not being alarmist to say it could happen to you because basically it really can happen to anyone.

Find cheaper cover rather than cancel

Perhaps the soundest course of action for Britain’s under pressure population is to examine their finances and in the case of insurance for example, to take the time to look around and find cheaper home insurance which could easily give them the same level of protection at a more affordable price.

Tags: Home finances, household insurance
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Banks prepare to cut and run

Tuesday, April 5th, 2011

Homeowners in the UK could find banking and mortgage facilities available to them may radically change in the next few years as the finance sector waits with bated breath on judgements from two sources over the next few weeks.

Unwelcome attention

It’s fair to say that most people take only a passing interest in what the finance sector is about unless it affects their mortgage, household insurance or their savings. The sector is in a state of flux at the moment, and the fact that profits are back, bonus’s are back and lending most definitely isn’t, has attracted unwelcome attention as far as the city boys are concerned.

Mortgage providers nervous

Last Friday ex Financial Services Authority (FSA) chairman, Sir Howard Davies, said that mortgage providers deserved some sort of decision sooner rather than later on how both the FSA and the European Commission (EC) will frame new legislation around the lending market. The rumours emanating from the EC on how any lender turned down for a loan via automatic processing will have to be given a personal explanation on the refusal is already giving mortgage providers nightmares as to how they will be able to afford the extra staff to manage this. The EC is expected to confirm that any costs on this cannot be directly passed on to the customer.

Protection for retail arm

At about the same time as Sir Howard was making his speech, the Treasury Select Committee were contemplating just what measures to take in ensuring retail banking was protected in future from the whims of gambling gauchos in the prime and subprime investment markets.

It is no secret that the committee feel there may be a need for more legislation to protect the public, and the constriction of the market due to the forced mergers that followed the collapse now makes them think there may be a lack of competition amongst banks. The committee feel that the retail banks who feed upon the needs of consumers to arrange their mortgage, home insurance and ISAs would benefit from a level playing field in attracting customers, who in turn would benefit from a more competitive sector.

A place overseas

The bigger fish are not at all convinced by the argument and have already started muttering in the appropriate circles that they may be forced to move elsewhere if things don’t go their way.

Tags: banks, household insurance
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