Nearly half of all property owners do not have adequate home insurance and are underinsuring their buildings, warns Norwich Union¹.

A sample of just 47 valuations carried out for Norwich Union revealed underinsurance of buildings totalling £130 million².

Brokers need to highlight that professional valuations are essential to ensure accurate cover, according to Mike Colmans, property owners underwriting manager, Norwich Union: “Under a lease agreement, property owners are obliged to insure their property for the full rebuild cost.

“Often however, property owners will have had a mortgage valuation done, which may not take into account all of the elements involved in the building. For example, the cost of replacing walls, gates and outbuildings or removing debris. Therefore, the building will be underinsured and the figure may become increasingly inaccurate over time.

“This can have a significant impact on any property owner when it comes to making a claim. Clients need to be aware that if adequate insurance is not taken out, tighter lending conditions and increased borrowing costs due to the credit crunch could make it very difficult to find the necessary funds themselves to rebuild a property.”

Colmans continues: “As it is usual for the tenant to fund the premium, it is a common misconception amongst property owners that they are doing their tenant a favour by saving them money if the property is valued at a lower amount.

“It is therefore essential that the property owner is aware of and meets their lease obligations, and the resulting premium is calculated on the correct basis.

“This makes it vital to have a professional valuation carried out on a property. Norwich Union has a preferred suppliers scheme, so we can recommend a trusted, RICS surveyor to carry out the valuation at a discounted rate.”

1 Based on Norwich Union commercial property claims analysis 2007
² Valuations carried out on behalf of NURS in 2007

Research carried out by esure Home Insurance after the 2007 floods supports the prediction by the ABI (Association of British Insurers) today that a third of the three million new homes the Government plans to build by 2010, which will be on floodplains, could become unsaleable. esure backs the ABI’s call for much tougher planning controls to prevent this.

According to esure’s poll(1), 87 per cent of UK adults would not purchase, or would refuse to live in, a property located on a flood plain - a statistic that may worry both town planners and property developers. The risk of flooding and a property’s flood history appears to be front of mind for homebuyers due to the fear of potentially suffering the devastating affects of floodwater on both an emotional and financial level.

Vigilance is definitely up as the majority of Brits (93 per cent) - if they were looking to move house - would now check whether a property was at risk from flooding before putting an offer on it. The Environmental Agency(2) provides an online flood map for any UK postcode, clearly showing areas at risk shaded in blue.

Water-side properties appear to have also lost their charm and are likely to warrant a reduction in, rather than an additional premium as interest in them may have begun to dwindle. The research showed that 44 per cent of Brits would now choose not to live in close proximity to a stream, let alone a river.

Mike Pickard, Head of Risk and Underwriting at esure Home Insurance, said: “The age-old adage location, location, location seems to have never been more apt for homebuyers. The fear of flooding has grown as the devastating impact of floodwater on the homes and lives of people in the UK has continued to hit the headlines following last summer’s flooding. esure supports the ABI’s stance that tougher planning controls are needed for new builds.”

1 YouGov interviewed a random sample of 2012 adults aged 18+, by telephone between 25th and 26th July 2007. Interviews were conducted across the country and the results have been weighted to the profile of all adults. Further information at www.yougov.com.
2 www.environment-agency.gov.uk

Halifax Home Insurance reports that more than 1.5 million British homes’ roofs were damaged by high winds last year.

* 1.5 million homes’ roofs damaged by high winds in the last 12 months
* £4.5 billion cost of repairing damage caused by high winds
* 200 million tiles replaced in the last 12 months
* £2.5 billion cost of repairing damage caused by water leaking into properties when roofs were damaged

New research by Halifax Home Insurance reveals that over 1.5 million British homes’ roofs were damaged last year, as winds of up to 77 miles per hour whipped across Britain and caused a staggering £4.5 billion of damage.

The average cost of wind damage hit £2,800 last year - equating to 12%2 of the average British salary and a huge blow for householders without adequate buildings insurance.

The insurers’ report also found that the average affected house needed 127 tiles replacing - more than 200 million across Britain – and placed huge pressures on the nation’s roofers and builders.

But it’s not just the cost of repairing the roof. Missing roof tiles allowed large volumes of water to leak into properties causing a further £2.5 billion damage, an average £1,604 per incident. Water damage included: damp, flooding, mould, damaged ceilings and even electrical fires.

Britain’s gardens also took a battering. Over 150,000 affected householders (10%) had plants devastated by winds, 78,000 (5%) suffered damage to sheds, summer houses and outbuildings, while 47,000 households reported destroyed garden furniture.

62,000 (4%) affected home owners also said that flying tiles and other debris had damaged their car while 15,000 reported broken windows. The future costs of storm and wind damage are predicted to increase markedly. A recent German study predicted that storm related losses could increase by up to 37 percent in the UK.

Martyn Foulds, Senior Claims Manager at Halifax Home Insurance, said: “The damage caused by high winds runs into billions of pounds each year. Immediate action is vital if householders are to avoid seeing the problem exacerbated by water coming in through missing or broken tiles. It’s advisable for homeowners to conduct a thorough inspection from ground level following high winds and call in a professional if they are concerned there may be damage.”

Halifax Home Insurance recommends homeowners check the condition of their roofs regularly and call in a qualified roofer to carry out any necessary repair work if any tiles are loose or missing. Keeping the home in a good state of repair is a condition of most home insurance policies and can go a long way to protecting the home from further damage. While Halifax covers genuine storm damage, homeowners are advised to take preventative measures to reduce the risk of damage occurring.

Martyn continued: “Homeowners without adequate buildings insurance cover risk finding a huge hole blown in their finances by the cost of repairs. Increasing incidents of extreme weather conditions, such as wind and flood, make it more vital than ever for homeowners to take proactive steps to protect their financial and physical security before disaster strikes.”

As the number of identity fraud victims soars, Direct Line Home Insurance gives policy holders access to free Identity Fraud Assistance from Experian

Direct Line, one of the UK’s leading home insurers, is adding Identity Fraud Assistance to its home insurance policy, at no extra charge to policy holders. The service will be available to all new and existing customers who purchase a Direct Line combined buildings and contents insurance policy.

Identity fraud is Britain’s fastest growing crime and currently costs the UK economy £1.7 billion a year*. Figures show that 136,966 incidents were reported in the period of January to September 2007**, almost 10% up on the same period in 2006. In some cases of identity fraud, without expert help and advice, it may take the victim as long as 400 hours and cost up to £8000 before things are put right**.

Direct Line Home customers who have taken out a policy since 7th January will now have access to the free Identity Fraud Assistance helpline. Customers who find themselves a victim of identity fraud will be referred to the Victim of Fraud Team and assigned a personal case handler. Their case handler will then work with them and assist them with the necessary steps to help them resolve their case.

Andrew Lowe, Head of Home Insurance for Direct Line, commented, “Identity fraud is a serious threat with the number of reported victims having increased significantly over the past eight years. Victims of identity fraud could encounter debt collectors, court actions and difficulties getting a mortgage, credit card or bank account if their credit report is not corrected. We are giving our customers peace of mind by putting a support service in place to help them deal with this growing threat. Being the victim of a crime can be distressing enough without the added worry of not knowing how to resolve the problem.”

Direct Line is working with Experian to provide customers with a solution to identity fraud. The customer is given access to their credit report online if they have a specific issue or feel they are a victim of fraud so they can spot any fraudulent activity. Following that, the Victim of Fraud team will investigate these activities and the customer’s credit report will be rectified. In all instances Experian’s Credit Expert offers 30 days free membership so customers can gain free access to their credit report.

Lowe continued, “Whilst all of our customers who are victims of identity fraud will benefit from the support team to get them back on track, prevention is always the best policy. We would strongly advise our customers to take reasonable precautions to protect their identity.”

Direct Line’s Top Tips

* Keep important documents in a safe place
* Safeguard PIN and password details
* Shred old bank statements and any other material with personal information
* Be wary of ‘phishing’ emails and phone calls. Don’t disclose personal details over the internet or phone
* When moving house, subscribe to a redirection service and inform your bank of your new address immediately

Commenting on today’s repair efforts by the ABI and the Government after last summer’s flooding, Richard Mason, director of insurance at price comparison site moneysupermarket.com, said: “It is now likely that those who unfortunately live on a flood plain will see a hefty hike in home insurance premiums in the future.

“From the figures presented by Defra, the average cost of settling a claim for flooding has now jumped to between £70,000 and £200,000 per household. This amount is unsustainable for the insurance industry to bear in the long term unless insurance premiums rise. This is especially true if assumed global warming is likely to lead to more frequent incidents of adverse weather in .

“For those looking to move home, it is essential to check the environmental agency’s flood map and assess the risk to your area, and really consider the flooding danger and financial repercussion living in a flooding zone creates. Homeowners whose properties are at risk must have good-quality home insurance. Doing so ensures they will continue to be covered regardless of what happens in the future.

“My advice is to have a policy with a well known insurer, such as Norwich Union or Halifax. People should also check the details of what their buildings and contents policies cover as well as the limits and excesses on both. “

– Ends –

• Up to £500,000 buildings insurance and up to £50,000 contents insurance.
• New-for-old replacements on most items
• They guarantee all repairs and replacements arranged by us and carried out by our approved repairers.
• TVs, satellite boxes, aerials, games consoles, glass and mirrors covered for accidental damage with Barclays contents cover.
• If your home is not suitable for living in following a fire or flood, they will pay up to £10,000 for you, your family and even your pets to live in temporary accommodation with our buildings insurance.
• The option to choose full accidental damage cover as well.

Get A Quote In 2 Mins. 10% online discount available. Get an online quote fast.

Romantic Brits are set to spend a staggering £1.32 billion on Valentine’s gifts this year of which, £467 million will be spent on jewellery* alone. Direct Line is urging those that do decide to lavish their loved one with diamonds, gold or other expensive presents to protect these cherished items.

Valentine’s Day is likely to be the most popular day for receiving jewellery. With an average ring costing about £1055**, there are £2.58 billion*** worth of engagement rings being flashed on fingers by Brits every year which may need extra protection.

Andrew Lowe, head of Direct Line Home Insurance, said, “Insurance is probably the last thing on most people’s mind when they are showering their loved ones with gifts on Valentine’s Day.  Having the right cover in place could prevent heartache if the unthinkable happens and that precious item is lost or stolen.”

Direct Line’s top tips for protecting your valuable gifts:

• Keep some form of proof of purchase such as receipts
• Get your jewellery valued periodically and update your insurer
• Keep photographs of your items and keep it with your policy
• Keep items that you aren’t wearing in a locked compartment such as a safe
• If your jewellery is lost or stolen, inform your insurer immediately
• High value items often need to be specified to ensure they have adequate cover - check with your insurer if you need to do this
• Check with your insurer if adding the items will affect the security requirements at your home, for example the locks on doors and windows

Direct Line’s home contents policy can cover items such as jewellery and watches in the home as standard.

Notes

*British Retail Consortium 2007 figures

** £1055 = Average price of an engagement ring at Goldsmiths

*** ONS figures: 244,710 marriages in UK and Wales in 2005 (244,710 x £1055 = £2.58 billion)

Halifax gives extra benefit to its banking customers. A new promotion launches in branches this week to give banking customers up to £25 cash back on Halifax Home Insurance. New and existing Halifax and Bank of Scotland current account customers who take out a new home insurance policy in a Halifax or Bank of Scotland Branch, or Halifax Estate Agency, will qualify for £25 cash back on buildings and contents cover which will be credited to their bank account.

Managing Director of Halifax Home Insurance, Tom Woolgrove, said: “This is a great opportunity for banking customers to purchase Halifax Home Insurance at a discounted rate and see for themselves the benefits of our unlimited home buildings and contents cover.”

The offer will run in all Halifax and Bank of Scotland branches throughout the UK until March 22nd 2008. Current account customers wishing to purchase standalone buildings or contents cover will benefit from £12.50 cash back.

Yorkshire Building Society has reduced the rates on its three year fixed rate mortgages and is offering borrowers the option to also fix their home insurance premiums for the same period.

The new mortgage deals for new customers are:

* 4.99% - 3 year fixed rate up to 75% LTV; Fee £995; max loan £250k
* 5.19% - 3 year fixed rate up to 95% LTV; Fee £995; max loan £250k
* 5.19% - 3 year fixed rate up to 75% LTV; Fee £995; loans over £250k
* 5.29% - 3 year fixed rate up to 95% LTV; Fee £995; loans over £250k
* 5.89% - 3 year fixed rate up to *95% LTV; No Fee; any loan amount

*LTV 95% for house purchase; LTV 90% for re-mortgages

Re-mortgage customers can get the same great rates together with free legal and valuation costs.

At a time when some home insurance companies are increasing their premiums by up to 10%, Yorkshire has fixed the price on its award winning home insurance for the next three years. This deal together with the new fixed rate mortgages ensures the Society’s customers have a real certainty of payments at a time when many costs associated with home ownership are increasing.

Yorkshire’s home insurance, which is underwritten by Royal & SunAlliance, has been awarded the Defaqto 5* rating for two consecutive years. The 5* award is only given to those products which are considered by the independent experts to offer a wide range of benefits and therefore are one of the best products available on the market.

Tanya Jackson, spokesperson at Yorkshire Building Society said “I’m delighted that we have been able to return to offering a sub 5% three year fixed rate mortgage deal. Linking this with a price freeze on our home insurance provides excellent value, and peace of mind over the longer term, to our borrowers.”

With severe gales battering much of the UK, and with snow on the way, Halifax Home Insurance offers some timely advice to help homeowners reduce the risk of weather-related damage to their property.The Met office has issued warnings of severe gales in Wales, South West England, London and the South East. Heavy snow is also expected in many parts, particularly the north and west of Scotland and Northern Ireland.

Senior Claims Manager for Halifax Home Insurance, Martyn Foulds, said: “With the average claim for storm damage costing around £1,000*, it is advisable for homeowners to take preventative steps to reduce the risk of damage to their homes, and also ensure they have adequate home insurance cover in place.”

Before a windstorm:

• Secure any objects which could become hazardous such as garden furniture, barbecues and bicycles, and keep gates and outbuilding doors fastened securely.
• Cut back low hanging branches that could cause damage in high winds or storms.
• Clear the gutters and drain pipes of any leaves or debris that have built up in them to reduce the risk of blocks and overflows.
• Check external light fittings are secure.
• Winter weather can play havoc with your home as freezing temperatures can result in burst pipes, with the loft being the most common place for a pipe to freeze.

Prepare pipes for the big freeze:

• People can guard their pipes against the freezing temperatures by lagging any exposed water pipes.
• Ensure loft insulation is NOT placed beneath water tanks in the loft
• Ensure that the tops and sides of water tanks are insulated
• Anyone going away for an extended period is advised to turn off their water supply and drain the system OR leave the heating on, set to a least 10 degrees Celsius/50 degrees Fahrenheit.
• If safe to do so, leave the loft hatch open to allow some warm air to rise into the loft space
• If your pipes do become frozen the water supply should be turned off at the stopcock, and all taps opened, to drain the system
• Never thaw the system out without taking advice from a qualified professional
• Externally, remove hose-pipes from outside taps. If the tap has an internal stop tap, shut it off and drain the tap and insulate and cover the outside tap

In an emergency:

• Keep a home emergency kit prepared in case of a winter emergency such as a severe storm or snow. This could include torches, spare bulbs and batteries, a battery powered or wind-up radio, your home insurance documents, other emergency contact details, tinned food, warm clothing, blankets and a shovel.
• Listen to the radio for regular updates on the weather or other emergency situations.
• While most home insurance policies cover many eventualities, there are certain emergencies that require something extra. Halifax offers its customers a 24 hour helpline, manned by fully trained colleagues, who can offer you useful information and advice on how to manage a home emergency.
• Halifax’s Home Emergency Cover provides a 24/7 helpline which, for around £4 extra a month, guarantees the provision of an approved tradesperson to make your property safe within hours.

Regular maintenance:

• Check the condition of the roof at least once a year and particularly following stormy weather. Look for cracked or broken tiles, cracks in the chimney or problems with the pointing. If any repairs are needed, hire a professional roofing contractor to carry out the work as soon as possible.
• Have your boiler serviced at least once a year by a CORGI registered gas professional and have the central heating and gas fires checked to ensure they are working safely and efficiently.
• Check that the loft is insulated properly but also has adequate ventilation.
• Thicker curtains will help to keep more heat in the home.
• Keep the central heating set to at least 10 degrees to prevent pipes from freezing.