Motorists have been among the worst affected throughout the economic crisis, between the oil producers and government fuel duty we have recently witnessed fuel prices escalating to over the £6 per gallon barrier.

The latest budget news deferring the anticipated fuel duty increase in April was expected by most and does little to quell the anger of motorists parting with half their wages to fill up their vehicles.

Motor insurance premiums have risen on average by 31% over 2010 figures and could be set to rise further still in the light of the recent EU ruling stating that insurance companies cannot treat male and female drivers differently when supplying motor insurance products.

The latest reports from the insurance industry suggest that buying home insurance is likely to cost us more than last year, although it has to be said that the average rise of 6% in this market is a little more palatable than the huge increase in motor policies.

Reports suggest that a typical average premium for buildings and contents insurance has risen from £142 last year to £151 in 2011, not a great deal, but still an extra expense that most of us could do without in the current climate.

It appears that insurers are keen to recoup the cost of claims made during the freezing winter weather last year, but with extreme and severe weather in the UK becoming a trend, the costs of insuring our homes is set to increase indefinitely.

Another area that has been attributed to the rise in premiums is fraudulent claims which appear to increase in times of recession, one insurer claiming that these claims cost each of us £44 on our annual premium.

There are of course various websites available that compare home insurance products and we would highly recommend that you shop around for the best deals available.

The majority of insurance companies prefer to insure both buildings and contents in one package and will offer a reasonable discount when these two products are bought together.

If you are about to replace an existing policy it is a good idea to have your previous documents available when checking out alternative insurers, this will enable you to compare services and premiums on a like for like basis and give peace of mind that you are at least getting the same cover as previously held.

Making sure you have the correct home insurance for your property is just, if not more, vital in your later years. You may be able to afford to pay more for your policy compared to when you set your first step on the property ladder as a first time buyer, but at the same time you are likely to have more to protect.

Taking out home insurance with a company such as Castle Cover who tailor their policies to the needs of individuals like you, could help your more adequately protect both the possessions you have amassed and the time and effort you have put into your home. Specialist insurers recognise that mature homeowners are often more careful than their younger counterparts and as such they offer competitive pricing as a reward. They also able to provide a high level of cover for both your contents and buildings insurance in recognition of all the hard work you have put into establishing your home and developing its value.

When you are taking out insurance be sure to account for possessions old and new.  Alongside new treasures like in-house technology such as laptops, flat screen TVs and PCs, make sure you account for any family heirlooms, antiques or collectables and have them valued if necessary.

Always ensure your home insurance policy covers all the basics such as flood, storm damage, water leaks and theft and consider any policy extras you might require too. If you spend a lot of time and money in your garden relaxing and gardening you may want to consider adding extras to your policy to protect the external parts of your home such as plants, shrubs and garden shed. After all – they all work together to make up the life you live in your home.

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.

According to Aviva insurance almost all of the 758,700 plants seized by the police in 2009/10 were being cultivated in residential properties and the insurer is warning landlords to be more vigilant as claims resulting from seizures have shown an increase of 30% in claims made against the insurer for damage caused to the property.

Cannabis farming tenants will often line walls, ceilings and doors with plastic or polythene, and windows will normally have blinds or curtains closed to obscure any activity.

The plants are watered through a watering system and high powered lighting is installed, often resulting in the tenant bypassing the electricity supply or at least tampering with it.

Heat from the lights and moisture from the water can cause condensation to be produced and the pungent smell of the plants can permeate walls.

Aviva said; “Cannabis farming comes with serious risks for landlords; properties can be completely ruined inside to make space for plants, water damage can occur and fire poses a risk due to interference with electrics or strong lighting left on for a long time.”

The company adds that it is working with both clients and brokers to raise awareness regarding tenants using domestic dwellings as cannabis farms, ensuring landlords have the right level of cover in place, rather than standard home insurance.

Compared to atrocious weather in the same period of 2009, the cold snap in November and December 2010 was not only more severe, but lasted longer and affected more of the country.

Insurance claims against property and vehicles reached a staggering £1.4billion over the most recent winter period compared to the measly £650million paid out for damage caused in 2009.

In fact burst pipes alone accounted for more in pay outs in 2010 than the total claims from the previous winter, with over 100,000 claims totalling £680million.

More than 250,000 vehicles were damaged as a result of the snow and ice on the roads, leading to claims for a further £530million it is claimed.

The Association of British Insurers (ABI) who released the figures, suggest that there is no evidence that premiums had increased as a result of the cold weather, but I am sure that will follow during the course of this year.

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.

With new research revealing almost one in 10* respondents have been burgled at Christmas, specialist home insurer Hiscox is urging homeowners to implement some basic security measures to help keep belongings safe.

Official records show that for the last two years burglaries have increased around the festive period** making home security all the more important. The research found that the most popular security measures carried out by homeowners were window locks (45%) and burglar alarms (28%).

Austyn Tusler, home insurance expert at Hiscox, comments: “Having some basic measures in place creates a security system that can go a long way in deterring would-be thieves. It is unfortunate that you are at greater risk during holidays when your home is more likely to be unattended, but the good news is that some additional steps will go a long way to help protect your home. It is reassuring to see from our research that only 6% of those surveyed said they would not implement any additional security measures when going away.”

When going on holidays, the top precautions taken by homeowners are to speak to their neighbours to tell them they are away (31%), or use timers to turn their lights on at certain times (30%).

Given that homes without security measures in place are 10 times more likely to be burgled than those with even simple security measures installed***, it is beneficial to safeguard the home. To help people secure their home properly, Hiscox recommends implementing some security measures:

Safeguarding the home:

• Physical barriers around the outside of the grounds of your property or garden define the boundaries of your home and provide a deterrent to criminals. These barriers may occur naturally, with trees or bushes, and can be supplemented with ditches, fences, gates, walls or railings
• gravel drives and paths are known to deter thieves as the arrival of pedestrians and vehicles create noise
• lighting is effective with low energy/high efficiency lighting, which activates automatically between dusk and dawn, and passive infrared sensing security lights, which are activated by movement, are among the best options
• Good locks are essential. Keypad locks are a good way of securing back doors while allowing easy access to the garden – just remember to change the combination every so often
• any ground floor or easily accessible upper floor windows or skylights, including those next to drainpipes, fire exits or flat roofs, should be fitted with key operated window locks
• it may sound obvious but if you have locks and bolts on your home it is important to get into the habit of using them
• install an approved alarm system, you can tailor systems to meet the specifics of your home security needs

Additional steps to take when going away:

• it is important that your home appears to be occupied when you are on holidays. Timer-operated lights, window blinds or curtains are a good way of giving the impression that your home is occupied when you’re not there
• cancel milk and papers or any other daily deliveries
• If you’re away for a longer period, it’s a good idea to arrange for a family member or friend to housesit or visit your home regularly to open and close curtains and pick up any post. At the least let your neighbours and friends know your holiday plans and when you will be away
• professional house sitting services look after your home while you are away and can be particularly useful for pet or livestock owners or those with isolated properties
• You should never leave keys under doormats, dustbins or in flowerpots – burglars know exactly where to look. It’s best to agree among your family on a secure location to keep spare keys in the event of an emergency

Austyn continues “Keeping would-be thieves at bay is a combination of a fixed security system supplemented by some practical measures. Telling your family and friends, home based staff or neighbours you are away is a simple but effective precaution to alert them to watch out for any strange activities. Turning on the timers on your lighting systems and making sure your windows are locked can be enough to deter potential burglars.”

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

* This survey has been conducted using an online interview administered to members of the YouGov Plc ‘Platinum panel’. These individuals are screened from 300,000+ respondents on the YouGov online panel who have £100,000 or more in investable assets.

** National statistics show that statistics for break-ins are at their highest in the last and first quarter of the year. Source Home Office British Crime Survey: Police recorded crime quarterly data to December 2009,

*** Source: Home Office 2010.

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.

The research conducted by the Centre for Economics and Business Research on behalf of LV= reveals that 26,000 Brits have fallen victim to the scam so far this year with an average of £540 being paid to the fraudsters before the account holders have noticed and stopped the direct debit.

The insurer suggests that this type of crime is likely to escalate over the next three years, having risen by a staggering 288% from 6,200 reported cases in 2006.

Fortunately under the direct debit guarantee system, victims will get their money back if they are a victim of this type of fraud, however consumers may unwittingly be adding to the problem as many continue to be lax in checking their bank balance with one in five (21%) admitting they only check their balance once a month.

LV= is therefore urging people to keep a watchful eye on their bank statements to ensure they haven’t fallen victim to direct debit fraud.

Experts believe one reason for this rise in this crime is the difficulty in obtaining credit as a result of the recession, leading to a surge in fraudsters attempting to use other identities in order to obtain goods and services. The recent boom in direct debit fraud has also been driven by the proliferation of online services, with fraudsters now able to set up contracts and other agreements without the need for stringent ID checks.

The report has also discovered that the problem is being exacerbated by old or duplicate direct debits. According to the research, the number of forgotten or duplicate direct debits paid out every year is at a record high, with £385 million ‘wasted’ in unnecessary direct debits last year by Brits. Forgotten direct debits take bank account holders on average four months to notice and cost around £190 each time.

Reflecting the increased likelihood of people now becoming a victim of fraud, LV= includes a free of charge identity fraud helpline as part of its home insurance policy.

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.