While the rise is well above the annual inflation rate, it is nothing compared to the increases seen in motor insurance over recent months.

However, make hay while the sun shines as insurance companies have yet to factor in the cost of last winters freezing weather and the enormous amount of claims made over that period.

Fraudulent claims are again becoming a growing concern, something that always appears to increase during recessionary times. Data from Legal & General suggests that policyholders are already paying for fraudsters who add around £44 to every premium.

And things do not look likely to improve, moneysupermarket.com suggest that should the freezing cold winters become a trend, the cost of insuring homes will certainly be on the rise, predicting double figure increases may not be far away.

In this digital age it is common for households to have two or more people who are regularly paying to download files from the internet. With half the country now possessing some form of MP3 / MP4 player, the top downloaded content is by far music with over 100 million tracks being downloaded in the UK each year.

Other popular downloads include expensive games, movies and other files to media players, laptops and games consoles. Downloads can cost from 70p for a single music track to around £15 for an album or even more for a multi disc compilation.

In the event of a house fire, water damage or theft of electrical equipment, these downloads could be lost forever. The situation is similar to having a box of CDs stolen during a break in so it will come as a shock to some householders that if this happens there might be no compensation from their insurer under their home insurance cover.

Music lovers are being urged to check their policies to see whether their insurer will protect them under their home insurance cover for loss of digital downloaded media and also to do everything they can to protect themselves against losses.

One of the easiest ways to protect against loss of music or other media files is to create a back up of the files. There are a number of storage solutions available on line where users can upload content to a remote server which can be accessed from anywhere, so if the primary computer is lost or stolen the files can be easily recovered.

Another example of good practice to protect digital media is to use a back up hard drive at home. Drives holding as much as a terabyte of storage are widely available and can cost as little as £60. Using an external storage device is generally good practice outside of any insurance issues as it also protects against failure of the primary storage device. However, this can still be an issue if the files are lost due to fire or flood, as the hard drive is likely to be lost along with the primary storage device.

Some digital music providers will allow customers to re download tracks they have previously bought and paid for, meaning customers won’t have to rely on home insurance cover to recover their losses. However, many do not, most notably iTunes, so customers should check this in the terms and conditions of the website prior to purchasing if they are not intending to back up the files in another way.

Some insurance providers do include cover for digital media, with the most generous on the market currently covering up to £2500, so it’s worth comparing the particulars of policies when choosing a provider for home insurance cover.

Comparing any added cost of a home insurance cover which includes digital media against the cost of purchasing an external hard drive storage device or signing up to an online storage provider will ensure the best value for money is being achieved.

As this is a relatively new concept and issue for the insurance industry it is likely that over time more providers will start to cover the cost of replacing digital media without an added burden to the cost of the premium. In the meantime consumers need to check their coverage and make sure they are effectively comparing all costs associated with covering digital media as well as doing what they can to protect their downloads themselves.

When the weather starts to warm up, home and contents insurer Hiscox is encouraging homeowners to be on the lookout for leaks caused by burst pipes. The sub zero temperatures can result in pipes freezing and homeowners could be unaware their pipes have burst until the thaw when water begins to leak into their property.

Austyn Tusler, home insurance expert at Hiscox, comments: “The early onset of snow and ice may have caught people under prepared with their winter proofing measures. However taking some simple steps and generally being vigilant for burst pipes can prevent major damage. There is still a long winter ahead, however as the cold snap ends and there are slightly higher temperatures, frozen pipes will begin to thaw.

“Unchecked, a leak can quickly turn into large amounts of water gushing into attics or lofts, damaging the structure, electrical wiring and belongings. Catching leaks early can prevent water damage and save homeowners time and money as well as the emotional stress of experiencing loss or damage to personal belongings.”

To spot a burst pipe:

• Look for damp patches on ceilings and walls
• Inspect the loft and any isolated areas that may not be as adequately insulated to check for leaks
• If you turn on the tap and no water comes out – don’t take any chances – call a plumber immediately and turn off the water supply
• Check exposed pipes for signs of damage – a leak will not occur until the water has thawed
• If you are going away for an extended period leaving your property unattended, make sure you have someone who can check on your home regularly

If you discover a burst or damaged pipe:

• Turn off the water supply at the main water tap (or valve), and turn off the stopcock in your cold water tank if you have one
• If water has leaked near electrics or electrical appliances, switch off the mains immediately and don’t touch any areas that are damp
• Protect everything around any pipe that appears to be frozen to avoid damage
• Contact your insurer to let them know about the damage within the time specified in your insurance policy
• Ring a tradesperson – again check with your insurer on whether they have a panel of approved tradespeople

For further insurance advice, visit Hiscox, specialists in a variety of insurance packages, including both Home & Personal and Business, such as Professional Indemnity Insurance.

Buildings insurance is almost always an obligatory requirement from lenders when offering a mortgage to purchase a property as it offers a safeguard for their investment, but even if you own your property outright it would be advisable to have some sort of cover in place.

Buildings insurance will generally cover the structure of the property including roof, walls, windows and permanent fixtures and fittings and in some cases drives, patios and fences.

This cover will also include subsidence, but will often require the policy holder to pay a compulsory excess, normally the first £1,000.

The insurer will require the property to be kept well maintained inside and out and it is worth noting that damage caused by general wear and tear over a period of time is not often included.

Flat roofs on garages and extensions for instance are considered by many insurance companies to have a limited lifetime, usually around ten years maximum, but as every insurer is different and offer different levels of cover it is worth taking the time to compare home insurance products.

Contents insurance is slightly less complex in that it offers cover against accidental damage or theft of personal items and household goods within your home.

It will almost always include cover of permanent fixtures and fittings such as lighting, carpets and flooring as well as the more obvious items like television sets and computers.

Many insurers will base your contents insurance on the number of bedrooms that you have in the house, which will give an average figure that they base the cover on. However as many of us now have expensive gadgets like iPods, mobile devices and the like in the home it is advisable to sit down and work out exactly the amount of cover you personally require. The value of personal items alone will definitely surprise most of us.

If you wish to include cover for certain items of high value the insurer will require these items to be listed with values at the time of purchasing a policy and may even request a third party valuation before accepting your business.

Oddly enough, contents insurance will normally cover items that are damaged or stolen when being used out of the house but only if they are not covered on any other policy, so as always it is worth checking your insurer first before making any assumptions.

baby buggies in demand

The amount of money spent by parents on ‘designer’ baby clothes and accessories is quite astounding, even those with little cash to spare seem intent on only buying the best for their little ones.

While you could argue that paying through the nose for designer clothes ensures that you are getting a better and longer lasting product it is equally fair to say that babies grow rapidly and will never have a chance to wear an item of clothing out.

The latest fad for expensive baby buggies has started a crime wave according to Halifax Home Insurance who say that theft of these items has almost doubled in the last year fuelling a black market worth an estimated £60million.

Their report says that sales of buggies costing over £500 a time has increased by 40% over the last 12 months and the high re-sale values have alerted thieves to a new way to generate cash.

Despite the high value of buggies, almost a fifth of parents questioned were unaware whether their pushchairs are covered under their insurance policy, so if you own one it is worth checking it out now.

David Rochester of Halifax Home Insurance says;

“It may seem surprising that thieves would stoop so low, yet it appears the increasing value of baby buggies has caused parents to become a target for thieves. We recommend all new parents make sure buggies are safely secured when stored in the home, and not left visible in porches or driveways where they can be easily stolen as they are on wheels, enabling a quick getaway.”

The ABI warns that darker evenings provide the cover that many opportunist criminals crave and the householder should take extra precautions to ensure that their property is safe from unwanted attention.

ABI spokesman Malcolm Tarling says; “You need to think about things like making sure your house gives the appearance of being occupied even when you’re out” and suggests the installation of security lights if none exist, while a gravel path or drive might alert property owners to an intruder on their land.

Good quality locks are highly recommended says Tarling, adding that industry-approved mortice locks that have been certified by an insurance provider could actually reduce the premium charged in some cases.

While we are encouraged to be vigilant during the darker nights of the year we should not become complacent during the summer months however, when there is more risk of us leaving windows ajar for instance.

Whatever precautions you take always ensure that you have adequate home insurance cover. Choosing a company like UIA Insurance will allow you to make savings by choosing a voluntary excess that suits you as well as saving money on combined buildings and contents insurance. They also offer a 15% saving simply by buying online.

From TV screens going blank during the game, to volcanic ash disrupting travel, terrorist attacks and freak weather conditions, the risk profession plays a key role when it comes to big tournaments, even though they have provided over £6 billion worth of coverage for the month-long event.

Munich Re estimates the broadcasting rights earned FIFA 2.2 billion Euros for the 2002 and 2006 World Cups. If the event is cancelled, FIFA faces substantial claims by companies who have licensed the media coverage.

Swiss Re Group estimate the cancellation of the event is one of the biggest risks insured, and the Olympics and the World Cup are two of the largest events insured for event cancellation coverage. FIFA alone has purchased $650 million in insurance for total cancellation of the World Cup 2010.

Other risks associated with the World Cup are household damage, increased thefts, player injury and even trauma suffered by fans whose teams have underperformed in the games. Surely something that England fans will not have to endure!

This interesting video gives some background to the huge risks and financial costs that must be considered when taking on the responsibility of staging a global event such as the World Cup 2010.

This group are easy prey for thieves says the study, because 92% of the victims carry a mobile phone while out with friends, 74% carry cash and 42% carry an iPod around with them.

The clothes and gadgets carried by the average young teen on Britain’s streets are worth £246 says the report, singling them out as targets for thieves, while 21% of 5-8 year olds carry a mobile phone and 17% carry cash when they’re out and about with friends.

While parents are anxious to keep their offspring safe by allowing them to carry a mobile phone, they may inadevertently be responsible for increasing the risk of theft and mugging.

Furthermore, by focusing their concerns on outside threats such as stranger danger, parents could be blinkered with regard to their children’s safety knowledge in and around the home.

The LV= Streetwise research shows that 38% of 5-15 year olds would not know how to leave the house safely in the event of a fire, and 15% don’t feel they are able to cross the road safely.

Mike Rogers, LV= group chief executive, said:

“Helping to steer your children safely through the world around them is one of the biggest challenges for parents today. While most parents will warn their children to be careful when carrying around cash and expensive gadgets, they may not pay the same attention to the safety risks in and around the home.
Our purpose as an insurer is to protect people’s lives and possessions, so naturally we also feel strongly about helping to educate families about safety and risk prevention. As a founder member of the LV= Streetwise charity we have a long-term commitment to child safety, and the message is going nationwide this summer as our safety bus roadshow visits summer fairs across the UK, to educate youngsters about safety.”

The LV=Streetwise Safety Bus Roadshow is currently touring the UK helping to educate children about safety in the home, on the streets and at railway crossings.

home insurance

Many homeowners spend several years and thousands of pounds gradually improving their property and with summer only around the corner, now is the perfect time of year to get your home looking spic and span. It is important not to let all this hard work go to waste.

Like most things, your home is at risk and depending on where you live, these risks can be numerous. This is why home insurance is so important – should something untoward or unexpected happen to your house, you will be protected financially from the cost of any repairs.

Most property owners will understand that they cannot prevent all risk, but thankfully they can be afforded the peace of mind that home insurance offers. What kind of risks can you expect? Well, if you’re thinking of purchasing a new property, it is important to check if the house likely to experience flooding. According to the government, five million people in the UK are at risk from streams and rivers overflowing. Homeowners should ask their estate agent or check the Environment Agency’s online flood map, where a risk breakdown will be provided after you enter your postcode.

You only need to cast your mind back to the summer of 2007 to understand the damage that flooding can do. Tewkesbury, a small town in Gloucestershire, was effectively turned into an island after the nearby Severn and Avon rivers burst their banks, and those without home contents insurance lost all their possessions. Without savings, many were left homeless and unable to recoup their belongings. A similar situation was seen in Toll Bar in South Yorkshire, where homeowners had to be rescued from their homes in rigid inflatable boats.

Another common environmental risk is subsidence. This is characterised by a series of small cracks appearing in a property’s walls, and if nothing is done the problem can quickly escalate to the point where tens of thousands of pounds of remedial work is required. Homes most at risk are those in the south of England built on clay soil. Subsidence occurs after a spell of hot, dry weather, which causes all the water in the soil to be sucked out by plants, trees and bushes, forcing the clay to contract.

In the property business, this phenomenon is known as ‘differential leave’. It’s serious because it can lead to structural damage, although fortunately instances of subsidence have been rare over the past couple of years thanks to the unusually wet summers. Properties suffering from subsidence rarely collapse, but their foundations normally need to be strengthened – a procedure than can cost anywhere between £5,000 and £50,000.

Property owners with home insurance should check to see whether their policy covers subsidence, and if it doesn’t, you may wish to consider seeking the advice of a chartered surveyor. In addition to cracks, some of the warning signs include doors and windows becoming stuck for no obvious reason and rippling wallpaper when there is no obvious damp problem.

Worryingly, large numbers of people put off investing in home insurance, confident that their property is somehow immune from risk. What many don’t realise is that home insurance policies include three fundamental factors that, unless you’re a multi-millionaire, are crucial if something should go wrong, as the cost of repairs without the help of insurance are financially crippling at best and completely unaffordable at worst – which could mean that the home you spent so many years working on can no longer be yours. These factors are structural damage, liability and uninhabitable living expenses.

Structural damage, which can be caused by both flooding and subsidence, is a key part of a home insurance policy. An insurer can cover the cost of repairs that need to be undertaken in addition to any replacements such as doors, windows or floorboards. Fewer people are aware of liability insurance, which guarantees that anyone entering your property is covered should something unexpected happen. It sounds highly unlikely, but it is not unknown for homes to be damaged by aircraft, trains or vehicles, while many more are struck by lightning. Liability insurance also covers the costs of any lawsuits filed against a homeowner by a guest who may have suffered a personal injury as a result of one of these calamitous events.

Policies that include uninhabitable expenses are particularly important for homeowners living on a flood plain or close to a river. A home insurance policy can guarantee that any expenses incurred while not being able to reside at your property can be claimed back until the insured property is safe enough to move back in to.

Homeowners should also consider a few other factors related to their home insurance. Is the property located adjacent to a busy road or an accident-prone area? What material is the home constructed from? What type of area is the property located in – for example, is there lots of crime? Brick or concrete homes tend to benefit from cheaper home insurance compared to wood floors thanks to the greatly reduced fire risk.

Crime and burglaries are of particular concern to homeowners. While burglars are unlikely to damage your home structurally, apart from maybe forcing their way through a window or door, they will be intent on removing its most valuable contents. For this reason, it is vital to invest in home contents insurance. With the cost of technology having lowered over the last few years, more homes contain high-definition televisions, laptops, desktop computers and other expensive electrical equipment. It takes only a matter of minutes for a seasoned burglar to get their hands on your possessions, and once they’ve been taken, you can be sure of never seeing them again.

During 2005-06, the British Crime Survey recorded 733,000 offences relating to domestic burglary, which represented seven per cent of all crime reported in the poll. While 293,000 of these were attempts only, in 440,000 instances an offender managed to gain entry to a person’s home.

Don’t be caught out by the risks your home faces and invest in an appropriate home insurance policy. Not only will you have peace of mind, but you can alleviate the possibility of financial difficulty should something untoward happen to your home.

The Association of British Insurers (ABI) say that £639 million was paid out over the course of the first six months of 2009, a staggering £3.6 million each day for damage caused by fires.

The plague continues to grow and looks set to exceed the twelve month record set in 2008 when insurers recorded £1.3 billion losses to fire damage in the UK.

The ABI claim in their report ‘Tackling Fire: A Call For Action’ that arson accounts for over half of all commercial fires and tends to increase in times of recession. They say that socially deprived areas and schools are particularly vulnerable, with twenty schools a week currently suffering from some form of arson attack.

The report suggests that while the number of fires reported are falling the increase in large scale fires is increasingly putting lives at risk as well as the incredible financial burden on owners and insurance companies in these difficult times.