The Association of British Insurers (ABI) estimates that some 27,500 homes and 7,000 businesses were affected by the floods and the total cost of claims is thought to be 1.5 billion pounds. The clean up is now well underway although there have been some media reports that Insurance Companies have been dragging their feet and slow in processing claims.
The Government met the ABI on 10th July 2007 Following the meeting Stephen Haddrill, ABI Director General said "Insurers are doing all that they can to deal with the impact of the floods, including getting people re-housed in temporary accommodation and making provision for early payments to help deal with immediate hardship. Where cover has been taken out against business interruption through flooding insurers are helping those businesses to keep trading."
The floods have highlighted just how important it is to have the right building and contents insurance cover in place. Tragically many households had no insurance in place at all, some estimates put people holding no home insurance as high as 25 percent.
Home insurance is normally separated into two types of cover, buildings insurance - this covers the structure of your home and fixtures and fittings, and contents insurance - which covers all furniture and personal possessions, basically everything you'd pack up and take with you if you moved.
You can have both types of cover combined into one policy through one insurer or insure your buildings and contents separately though two different insurers. Cover will normally protect building and contents against the major risks of fire, storm damage, flood damage and theft, policies may also cover many additional risks as well.
Home Insurance quotes are rated on many factors including post code, occupation, type of property, and age of property. Insurers will often require adequate security including window locks and door locks. Insurers will often offer discounts for example for being a member of a neighbourhood watch scheme or having an intruder alarm fitted.
Nowadays there are many methods to obtain home insurance, often it is set up at the time of house purchase where the mortgage lender will insist that building insurance is in place before they will lend the money. Alternatively people may use an insurance broker, high Street bank / Building Society or you can get a home insurance quote on line via the internet.
When Brits buy homes there are two basic components to standard home owners insurance. There is buildings home insurance, which covers the replacement cost of the physical building or property. The second coverage item is for contents or personal items maintained inside the property. Along with these standard covers, there is also usually legal protection or liability protection to guard against lawsuits for people injured in the home.
Buildings home insurance is usually the biggest piece of the home insurance protection. Many home insurance customers make the mistake of looking for the lowest premium price and assuming that is the best plan for them. It is important for home buyers to be very careful in examining the various features of home insurance products to ensure the best value.
Some home insurance agents believe they are helping the home buyer when the find low cost options. In fact, some agents even manipulate numbers in the insurance quote and plan in order to create the lowest cost. Buildings home insurance is a common tool used to keep premium costs low. The building insurance is also known as the replacement cost for the home or property. Some home owners think the replacement cost should be the same as the cost to purchase the property. This is not usually the case.
An accurate replacement cost is an estimate to replace the property if it were destroyed by a tornado, fire, or other covered event. For older properties, the replacement cost can be significantly more than the market value of the home. This is because the cost to replace the building must be based on the current cost of materials and labor required. If a property buyer gets a good deal on a home because it is worn or needs some repair, the replacement cost, which incorporates new materials, should be higher than the purchase price.
In spite of the sound reasoning for having the right amount of replacement coverage, many home buyers and their agents manipulate insurance items, such as buildings coverage, lower in order to reduce premiums. It is definitely true that doing this can reduce monthly insurance premiums, but it defeats the purpose of insurance. Affordable insurance is important, but so is having insurance that provides needed financial support when it is used is more important.
Brokers or specialists in providing home insurance understand the importance of thorough coverage and will encourage buyers to be practical as well as economical. Another often overlooked aspect of home insurance is building cover for external buildings or those outside the main property.
Full buildings home insurance cover should take into account all physical buildings associated with the property being covered. Some properties have external buildings such as guest houses, greenhouses, sheds, detached garages, or others. In the event of a damaging or destructive event, it is important that coverage is adequate to include the replacement costs for all of the property's buildings, not just the main property. Customers need to be sure to tell their broker they want thorough buildings coverage.
Both Shaun Parker & David Thomson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Shaun Parker has sinced written about articles on various topics from Online Marketing, Auto Insurance and Wedding Bells. Shaun Parker has been at the forefront of the industry for many years. Visit. Shaun Parker's top article generates over 246000 views. to your Favourites.
David Thomson has sinced written about articles on various topics from Finances, Motorola Cell Phone and Mortgage Insurance. David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their. David Thomson's top article generates over 90500 views. to your Favourites.