| Buildings Insurance went up again last | | | | hitting the insurance industry where it |
| year, costing homeowners another 1% a | | | | hurts - their pocket. |
| year, taking the average to just over | | | | - Burglars pick posh neighbourhoods to |
| £205 for a year's insurance. Contents | | | | ensure they get away with the best items |
| insurance also went up, this time by 2% | | | | - with expensive items like jewellery |
| - now it costs the average homeowner | | | | for the taking, the value of these kind |
| £151 a year. However, some lenders are | | | | of claims is increasing. |
| hiking prices even higher than that - | | | | Insurance companies use statistics |
| Norwich Union for example, raised its | | | | relating to a postcode area to calculate |
| prices by a whopping 6% last year. | | | | premiums for everyone in that area. If |
| The question is - why? There's so much | | | | your neighbours have suffered |
| competition out there, you'd expect | | | | subsidence, or your area is near a river |
| prices to be falling, not increasing - | | | | which has been known to flood - you will |
| but there are other forces at work, as | | | | have to pay higher premiums. Similarly, |
| we go on to discuss. | | | | if people in your area have been broken |
| No 1 - the cost of having a house | | | | into, then it will be assumed that you |
| repaired or rebuilt | | | | are at a higher risk of making a |
| Labour and building materials are | | | | burglary claim too. |
| getting more costly, so when the | | | | Having a no-claims discount is a help |
| insurance company calculates how much it | | | | when it comes to offsetting the annual |
| would cost to rebuild your house, prices | | | | rise in premiums, but insurance |
| are higher. This is due to inflation, | | | | companies cap these discounts once you |
| and the same thing affects the insurance | | | | have 5 years no claims, so you will not |
| company and its own operating costs. | | | | get any further discounts. |
| Wages, bills, office rental - all these | | | | So is there any way to avoid the rising |
| costs are increasing year on year - so | | | | cost of home and contents insurance? |
| of course insurers have to factor these | | | | The first thing you can do is look |
| in. | | | | around for the best deal. Try the |
| No 2 - the weather | | | | Internet for the best deals, because |
| The British weather is getting more and | | | | most insurance companies offer a |
| more tempestuous, whether it's due to | | | | discount, often 10%, for customers that |
| global warming we are not qualified to | | | | buy online. You will also save if you |
| say, but it's a fact that we have been | | | | pay by direct debit. It's tempting to |
| experiencing a lot of extreme weather in | | | | accept your current insurer's renewal |
| the past few years. The 1987 hurricane | | | | quote but don't be fooled - the small |
| was a freak occurrence, but flash floods | | | | amount of effort it will take to shop |
| such as the incident in Boscastle, | | | | around will pay good dividends. One of |
| Cornwall, Helmsley in North Yorkshire, | | | | the reasons for this is because insurers |
| and Carlisle are making the headlines on | | | | always offer their best deals to new |
| a regular basis. The Association of | | | | customers, existing customers are |
| British Insurers has stated that the | | | | virtually penalised for showing loyalty! |
| average insurance claim due to flood | | | | Improving your home security is another |
| damage could be anything from £15,000 | | | | good way to reduce premiums - while |
| to £30,000, making huge dents into the | | | | giving you essential peace of mind. |
| insurance industry's profits. In fact, | | | | Neighbourhood watch schemes, external |
| floods cost insurance companies millions | | | | security lighting, a burglar alarm, |
| every year. | | | | security locks on windows, and |
| No 3 - Burglary | | | | industry-recognised locks on external |
| Claims due to burglary have been going | | | | doors will make a difference. Obviously |
| up, now average at around £1,400. The 2 | | | | these things cost money to install, but |
| main causes are: | | | | they pay for themselves in the long run. |
| - From digital cameras to laptops, game | | | | Play the insurance company game and you |
| consoles to ipods - our houses are full | | | | will always win - shop around, be |
| of electronic gadgets with a high value | | | | prepared to move insurance company every |
| bought new, and a high value resold. | | | | year, and don't accept any high prices. |
| Burglars are after these items and it's | | | | There's always a better deal out there! |