Keep property insurance costs low

Domestic disasters such as fires, burglaries and storms cost British homeowners over £2 billion in damage and losses in 2006. 75% of this was covered by insurers, however, it was the customer who had to endure the cost of policy excesses and lost no-claims discounts.

The figure in 2007 is expected to be even higher following the summer floods and the recent mini-tornado that affected some parts of the country.

A spokesperson for the British Insurance Brokers’ Association said that insurance is rated by postcode so it’s down to the individual to show why they deserve a lower premium. One way is a claim-free year, furthermore, there is plenty that a homeowner can do to cut the risks of a fire or theft and reduce any damage from bad weather.

The spokesperson added that making the extra effort should help to reduce the stress and cost of a claim, those who make the effort will benefit from cheaper insurance premiums.

Research by NFU Mutual discovered that 25% of homeowners had never reviewed the value of their contents insurance. Ensure that valuables are listed separately and backed by proof of purchase or professional valuation. Valuations should be updated at least every 5 years.

Security is always high on any insurance checklist, window locks and British Standard five lever deadlocks on the main doors are resistant to acid, hacksaws and drilling. Consequently, burglars will have to break a window to gain entry and broken glass increases the chance of being caught.

Repairing a home that has been flooded can cost an enormous amount of money. The Environment Agency produces flood maps for each postcode identifying locations at high risk. Properties in a high risk area could benefit from installing non-return valves on drains, covers for air-bricks and to look into barriers for doors and windows.

Home fires cost insurers nearly £400 million in 2006 – this was the highest figure for a decade, worryingly, home fires claim 200 lives each year.

The causes of fire are changing, fewer people using pans with oil and less people smoke at home, however, other dangers such as candles and barbecues are on the increase. Smoke alarms in the hall and bedrooms can be crucial and only cost a few pounds.

firekills.gov.uk has more information on fire prevention and safety.

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