Home insurance should be a top priority as future loans and potential losses through burglaries are real risks for household owners.
Malcolm Tarling, media relations manager at the Association of British Insurers (ABI), advised homeowners to insure the contents of their homes to safeguard themselves against natural calamities such as floods or criminal activities like burglaries.
Home insurance also goes a long way to help householders take out loans in the future using their property as security during the application process.
Mr Tarling explained: "Anyone who lends money is unlikely to lend money on the basis you haven't got some kind of insurance to protect your investment if things go wrong."
He added that taking out proper insurance for their homes was possibly the "biggest single investment" that people would undertake in the course of their lives.
According to recent data published by the Clydesdale and Yorkshire Banks, about 150,000 houses that are burgled each year do not have any contents insurance.
It is estimated that the average claim value of these thefts is around £1,200, bringing the cumulative sum to almost £200 million each year.
Another report published by the ABI recently revealed one in three households in Britain have no building cover, while one in four have not taken out any insurance to secure the contents of their home.
The findings also suggest that each year only one in ten homeowners in Britain make use of their Home insurance to put forward a claim.
Mr Tarling emphasised that without proper contents insurance, it would take the average British homeowner years to replace the lost goods, even making it impossible to do so in some instances.
According to the ABI, property accounted for £8.8 billion of the total net premiums of £33.8 billion paid in 2008.  |
0 comments
