UK Insurance News

With summer just around the corner, more and more of us will be thinking about getting away from it all with a relaxing break. Due to the current economic climate, however, many people are deciding to holiday a little closer to home and save some pennies by visiting a holiday destination in the UK. Currently one of the biggest trends in UK holidays is with a static caravan holiday.

This is reflected in the increase of the numbers of static caravans sold to UK consumers, in fact sales have gone up 38 percent within one year as more Brits are choosing to “staycation” rather than going abroad. Deciding on this as a holiday choice may sound simple but there are still numerous things which much be sorted before it can become a reality, such as caravan insurance. Just as when flying abroad you’d be required to arrange holiday insurance, you must ensure your caravan is adequately insured.

Caravan insurance isn’t just required when you are holidaying; you’ll also need to arrange a policy which covers your caravan when no one is staying in it. As most caravans are often left unattended in remote areas there is a risk of them being broken into, so you’ll need to ensure you’re fully insured. Flooding is also a risk when caravans are left in remote areas so it is important to have appropriate insurance in place which may cover this eventuality. Something else which should always be on your insurance check list is to verify whether or not the entire contents of your caravan are covered by the policy.

Owners of static caravans often rent them out as a good way of making a little extra income. This may sound like a great idea but it is imperative to make sure that your insurance policy is valid even if you’re not the person who is residing in the caravan at that particular time. One thing to be aware of is that most caravan insurance policies will not be valid if you are permanently living in the caravan. Make sure you read the small print before signing anything.

A caravan holiday may seem like a cheaper option and a great investment in the long run and for many people this is the case. However, it is imperative that all aspects of the insurance are in place so the cost remains firmly low.

Home insurance premiums have risen at an average of 6% over the last twelve months says a report from moneysupermarket.com, recording a rise for a typical buildings and contents insurance from £142 to £151 per year.

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.

As redundancies increase and work becomes harder to come by many people will consider the option of starting their own business as a means of insuring their future is in their own hands.

Recession has a habit of throwing up new genres in the service sector, encouraging budding entrepreneurs to gain the credentials required to take up a new challenge often in a consultancy capacity to other businesses and the public.

Past recession’s saw a whole market grow out of nothing as ISO Accreditation became the latest must have for any business that intended to go places, and previous to that there was a huge growth in the number of Financial Advisers offering their services.

With the right credentials it is possible to start up a new business relatively cheaply by working from home and keeping overheads to a minimum.

However, one thing that should not be overlooked by anyone intending to offer advice and service on a consultancy basis is a good Professional Indemnity Insurance.

This is an essential insurance product for anyone offering advice and consultancy as it protects your business from potential financially crippling and possibly reputation damaging claims from dissatisfied clients.

While no-one in their right mind would go out of their way to set up a business that makes false claims, mistakes can and do happen and Professional Indemnity Insurance will give you peace of mind by protecting your business in a number of ways.

• It will cover you if you make a mistake in the professional services you have provided that leads to a dispute with a client.
• The Indemnity insurance policy will also cover the cost of fixing any mistake on your part, thus avoiding a larger claim being made.
• You are also protected if you lose or damage any clients’ documents in your care or if one of your employees are involved in the theft of a clients’ money.
• Intellectual property: unintentionally infringing on others’ copyrights, trademarks, broadcasting rights, any act of passing off
• Loss of documents/data: damaged, lost or stolen data and documents belonging to your clients
• Dishonesty: liability arising from the theft of your clients’ money
• Negligence: or breach of duty of care

These are just some of the benefits of Professional Indemnity Insurance, but packages are tailored to suit individual businesses, professions and occupations.

Whatever you do, be wary of offering advice or consultancy without the relevant insurance in place.

The Government Justice Secretary Kenneth Clarke’s announcement that the current ‘no win, no fee’ rules will be reformed, has been applauded by the Association of British Insurers (ABI), who have been campaigning for a change to the current system for some time.

In his announcement Clarke said that a reform was needed to “put the brake on runaway legal costs and mean a better deal for genuine claimants and insurance customers.”

The ABI have long campaigned that high legal costs in settling personal injury claims is one of the main reasons for the general rise in motor insurance premiums.

Nick Starling of ABI said; “For too long ambulance-chasing lawyers and claims management firms have encouraged many people to believe that there is a compensation culture to exploit. The result has been a slower process for genuine claimants, and out of control legal costs that end up being paid for by all consumers through higher insurance premiums.”

The ABI claims that for every £1 paid out by motor insurers in compensation, another 87 pence is added in legal costs.

We will have to wait for news from the government as to what reforms they will make to the compensation market and whether motor insurance premiums will decrease as a result of any such changes.

One activity that appears to be booming during these hard times is the illegal cultivation of cannabis in farms set up in residential homes, with plant seizures by police rising by 18% in 2009/10.

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.