Malcolm Kyle

Last month, the Association of British Insurers warned that the cold weather could cost insurers £7m every day in claims for burst pipes and leaking water damage. It predicted that the total cost of the cold winter could top £650m. So it should come as little surprise to learn that the average building insurance policy has increased to £143 a year – a rise of 10pc, as reported by the AA in its latest Premium Index report due to be published next week.

The cost of contents-only insurance has jumped by 8pc to an average of £72 a year.

RSA, one of the World’s leading Insurance groups and owner of the popular More Than brand, has warned that premiums are set to rise even further this year, blaming the increased number of claims over the cold winter. In fact, the coldest December in 100 years weather cost RSA £142m more than an average winter with a total of 8,000 claims in November and December at an average cost of £6,700.

With increased costs on inflation and the rise in VAT, insurance customers should brace themselves for increase in the cost of cover over the next year.

The good news however is that there are steps you can take: home owners are always better off opting for joint buildings and contents policy. My personal advice is to search the market for the best deal you can find, and then come to me, as I will always guarantee to beat any like for like quote on domestic insurance.

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It was a crisp evening and the snow was softly falling, when the Networking Knight and his trusty steed “Valiant” were returning to Kyle Castle. As they approached the Draw Bridge the Knight was met by his good Lady who was rending her hair and wailing in obvious distress.

“Oh Master” she cried “a disaster has befallen us; the foolish maidservant has spilled lamp oil over the Persian rug you brought back from your last Crusade…. and it’s ruined.”

“Be calmed good lady” replied the Knight. “I shall send for the redoubtable Curry of NCF, if anyone can remove the offending Oil, it will be him. And if he can’t, we shall simply have the rug replaced on our ‘New for Old’ contents Insurance policy.”

“You see, unlike the other evil Robbing Insurance B…barons I ensure that all of my clients are given the very same Buildings and Contents protection we have ourselves, so they like us can sleep safe in the knowledge that nothing can perturb them.”

“Oh Kind Networking Knight, I thank the Good Lord every day that you decided to marry me and saved me from a life of servitude, how may I ever thank you?”

And the Networking Knight climbed down from Valiant and with a smile said “Oh, I’m sure we can think of something” and he and his Good Lady retired to the Castle Keep and the roaring log fire, secure in the knowledge that he was fulfilling his quest to protect people while helping them to save more too

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Many skiers take to the slopes with inadequate insurance. This excellent article from Emma Simon in the the Telegraph explains what to look for.

Posted 25th November 2010

One million skiers and snowboarders will head to the slopes this winter without adequate insurance, according to a new survey, potentially leaving them facing costly medical bills.

Even in these more austere times, winter sports holidays remain popular and many people are now planning this year’s break. But according to the Ski Club of Great Britain, more than half of those heading for the slopes won’t bother with travel insurance. And of those who do have insurance, only a quarter will check the terms and conditions to ensure they are covered for winter sports activities.

Given the high rate of injuries on the slopes, you would think a comprehensive insurance policy would be seen as essential as ski googles and gloves. But, surprisingly, many people don’t bother with this insurance because they don’t think it would pay out in the event of an accident.

According to Axa, one of Britain’s largest travel insurers, in a recent survey of skiers and snowboarders, one in five (19pc) said they believed an insurance policy would not pay out for injuries and one in three did not believe cover would be provided for transport home if injured.

Needless to say, both of these events should be covered in full on a comprehensive winter sports holiday.

Much of the confusion may arise because of the European Health Insurance Card (EHIC).

All holidaymakers travelling to Europe are advised to get one of these cards, as they cover some of the cost of medical treatment in Europe. But they are not an adequate substitute for insurance. For starters, they only offer up to 80pc off medical bills in hospitals that accept the card.

However, there is no guarantee that in the event of an accident you will end up in a hospital that participates in this scheme. Dr Tim Hammond, from medical assistance provider CEGA, said: “If you are injured on the slopes, resort pisteurs will probably take you straight to a private clinic, where the EHIC care will not cover your medical treatment.”

Even if you get to the equivalent of an NHS hospital, the “free” medical treatment available may be a lot less than what we are used to in Britain. The EHIC card won’t pay for any transportation costs either – either to hospital, or for repatriation back home. So while it makes sense to take one, it is also essential to buy comprehensive insurance.

This insurance should pay for most medical expenses incurred abroad, which will include those not covered by an EHIC card.

Skiing and snowboarding injuries are relatively common. The Association of Mountain Doctors in France said it dealt with 140,000 injuries last year; and according to the Axa survey, about a quarter of those who have been on a winter sports holiday have suffered some kind of injury – and the cost of treating these can soon escalate.

Many need evacuation from the slopes (which certainly wouldn’t be covered on an EHIC card), then there is the cost of any treatment, such as X-rays, operations, and in more serious cases, transport home.

For those holidaying in the ski resorts of Europe these costs can easily top £25,000 – and it is even higher for those needing medical treatment and flights home from America and Canada.

But what should you look for in a winter sports policy?

First off, check you are covered for these sports. Many people rely on an annual policy, which won’t necessarily cover these activities. If you already have an annual policy, it is worth contacting your insurer. Most will add on this cover, for a fee of course.

Check it covers your holiday destination. This may sound obvious, but some people buy winter sports cover, thinking this will cover them wherever they go skiing or snowboarding. But if you have European-only cover it’s obviously not going to cover you for skiing trips in Whistler or Aspen. People who simply renew an annual policy each year, without really checking what they have, could potentially fall into such traps.

Aside from the medical cover, you also want to make sure the policy has personal liability and legal expenses cover. This will cover your costs if someone injures you and you need to take legal action against them; likewise it will cover you if you are involved in a collision and someone wants to sue you.

Retired skiers should also check that their insurance still covers them, particularly if they have “free” insurance with either a bank account or credit card. Many of these only cover people up to the age of 60, for example.

Keen winter sports enthusiasts should ensure that their policy is tailored for all activities. Off-piste skiing, for example, may not be included, or only if you are with a registered guide. Likewise, there may be insurance restrictions on activities such as tobogganing, ski touring, glacier skiing, heli-skiing or even racing.

A spokeswoman for the Ski Club of Great Britain said: “Even if you are or your children are taking part in fun races with the resort’s ski school, these may not be covered. Many policies do not cover racing, not even recreational races.”

Other areas to check include whether there will be payouts for closed pistes, either as a result of high winds, too much or not enough snow.

A winter sports policy should also include cover for lost baggage, and cancellation and curtailment of your trip – as you would find on any standard travel policy.

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Express.co.uk ~ Wednesday November 24,2010

By: Esther Shaw

CONSUMERS are being warned they could be putting themselves at financial risk by cutting back on cover that protects them in the event of fire, flood, theft or accident.

The warning has come from the British Insurance Brokers’ Association (Biba) after its findings showed that 57 per cent of brokers have seen consumers reduce their level of insurance protection during the economic downturn compared with 23 per cent last year.

“The steep rise in people cutting cover is very worrying,” said Eric Galbraith, chief executive of Biba. “We understand that times are tough but consumers should take care not to leave themselves exposed. It could be false economy and cost them thousands of pounds for repairs or to replace belongings.”

The most common examples were consumers reducing levels of sums insured, for example on home insurance, increasing excesses and scrapping cover that is deemed “non-essential”.

“Reducing your sums insured could be a costly mistake as if it isn’t accurate, it could adversely affect a claim payment,” said Galbraith. “Customers also need to ensure they will be able to afford higher excesses should the unexpected happen. The key is to think long and hard about the cover you need to meet the financial consequences.”

The good news is there are other steps you can take to keep a lid on costs.

Homeowners who want to cut the cost of cover can potentially save money by buying their buildings and contents cover from the same insurer and installing a burglar alarm. Motorists can save money by investing in an alarm or immobiliser and by parking in a garage. Travellers may also be able to cut costs by purchasing an annual multi-trip policy rather than a single-trip one.

More savings can be made by paying premiums upfront, as most insurers charge interest on monthly payments.

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The Networking Knight is being dressed by his faithful Squire, Richard de Plumb.

On goes the Knights tunic, over which is fitted his Chain Mail. Richard de Plumb hands the Knight ‘Truth’ his Broadsword and ‘Righteousness’ his Shield and now the Networking Knight is ready to face the World.

The Squire asks “Good Networking Knight, you know that I also run a plumbing and heating business but I’m fearful of the outrageously expensive quotes I’ll receive for my Tradesman Insurance from the Robbing Insurance Bb.a..arons Can you help me?”

“I can good Squire, I can. I have a specific Tradesman & Professional Insurance designed specifically to meet the needs of EVERY type of trade whatever the risks involved”

“Thank you kind Knight” replied the Squire, “how may I ever thank you…?”

“Well you could stop tightening that mail, as I’m loosing all feeling in my nether regions!!… then speak to the trades professionals you know, so I may help them too.”

And with feeling restored…the Networking Knight sat down, to prepare for his 10 minutes… secure in the knowledge that he was fulfilling his quest to protect people while helping them to save more too

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Then don’t forget the insurance!

We have one famous couple preparing for their big day in 2011 and they may just be able to afford any slip-up’s but what if something were to go wrong in the run-up to your big day?

Wedding insurance can provide a safeguard against all manner of unexpected disasters.

It’s now estimated that the cost of the average wedding in the UK is a staggering £20,000. Combine that with a recession creating the potential for an increasing number of suppliers to go bust leaves a recipe for disaster, with  couples being left in the lurch. Making sure that all elements of your wedding are covered has never been more important.

There are specialist policies available to provide exactly this type of cover and lump sum premiums vary from about £20 to more than £150, depending on the level of cover.

The most important things to consider are how much the insurance will pay out if the wedding has to be cancelled – the highest top out at around £70,000.

Policies should normally pay out for cancellation if the wedding venue cannot be used, or guests cannot attend because of severe weather, or the death of a member of the wedding party, for example but you should also, check how much the policy will pay if your most expensive items, such as your wedding dress, become lost or damaged.

It is important to check the small print on what happens if your caterer or florist fails to deliver goods – while most policies will cover you if your supplier goes bust, very few cover a supplier’s ‘failure to meet obligations’. So it’s vital you explain your requirements to your broker very carefully, to ensure they select the right policy for your needs.

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The Networking Knight is sitting quietly polishing his Mighty Broad Sword when he is approached by the Court Jester – Andrew Cooper.

“Nice Sword” says Andrew

“Thank you” replies the Knight, “I call it Truth”

“Why Truth?” said the Jester

“I call it truth, as it represents how I approach my Quest. Just last week for example, the Lady Ruth asked me to provide a quote for two rental properties that she and Lord John of Belsay own. Upon examining her existing policy, I found they were already receiving the right cover at the best possible price. So I advised them to renew with their existing company.”

The Jester replied “Good Networking Knight, you’re certainly unlike the other Insurance Robbing B..b..arons that I know…. How can I help you?”

“Well you could stop shaking that Pigs Bladder in my face for a start… and speak to all the people you know who own rental properties and I promise on this ‘Sword of Truth’, that they will receive the same honest approach.”

And the Networking Knight returned to whetting Truth, secure in the knowledge that he was fulfilling his quest to protect people while helping them to save more too

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Life Insurance is probably not the most exciting thing you’ll read today. However, if there are people in your life who depend on you financially, these two words are very important indeed.

You need to ask yourself what would happen if I was no longer around to bring in an income or look after my children? Would my family be able to cope financially? Would my partner manage to keep up with all the mortgage repayments?

If the answer is no, and you care about your family’s well-being, then having a life insurance policy in place is vital. Without one, your family could lose their home at the worst possible moment imaginable.

Yet despite this reality, recent research from Sainsbury’s Life Insurance has revealed that nearly one in two mortgage holders in Britain don’t have their mortgage contributions covered by life insurance. In fact, the findings suggest there are over 7.1 million people with a collective outstanding mortgage balance of £318 billion who have no life insurance to cover this. That’s a staggering amount of people gambling with their families futures.

Youngest are worst

Of course, not everyone needs life insurance. Perhaps unsurprisingly, the Sainsbury’s research revealed that young mortgage holders (18-24 year olds) are the least likely to have life insurance (62% of them don’t). This makes perfect sense, because at that age you’re unlikely to have to support anyone financially, such as a child or a partner.

However, 44% of 25-34 year olds also don’t have life insurance, 32% of 35-44 year olds are also unprotected, and 34% of 45-54 year olds have no cover. These are pretty significant numbers of people who are likely to have a loved one who depends on them financially in one way or another.

If you’re concerned about how much life insurance will cost you, the good news is, it really doesn’t have to be expensive, particularly if you contact me to look for the best deal for you. With premiums for the young starting from as little as £5 a month, there is simply no reason to leave your family unprotected if something happened to you.

And of course, the advantage of taking out a policy when you’re younger is that your premiums will be lower. The simple reason for this is that a claim is more likely to be made under the policy if you’re older because your health is likely to be worse.

If you’re age 20 and you took out a 25-year policy, for example, there’s a good chance you will survive until the end of the policy at the age of 50. But if you’re age 50 and you take out a 25-year policy, although your chances of surviving until the end of the policy are still good, they are lower. So the sooner you take out a policy, the cheaper it will be.

That said, it’s worth bearing in mind that if you’re taking out a policy when you’re older, you may not require your policy to run for as long as 25 years and your outstanding mortgage debt is also likely to be lower – in which case, your total premiums will also be reduced.

Further things to consider

While covering your mortgage costs is important, you might want to take this one step further. After all, even if the mortgage is covered, would your family be able to cope with paying energy bills, food bills, council tax, without you? If you really want to ensure your family will be fully covered, you need to look at covering all your expenditure.

It’s also worth noting that if you’re buying as a couple, a joint policy usually works out to be cheaper than buying to single policies. However, the problem with this is that it won’t give you as much cover as two single policies because it will only pay out once – when the first person dies, leaving the survivor without any cover. On the other hand, two single policies will pay out twice, so you’re effectively getting double the protection, and they rarely cost double the price.

Life Insurance may indeed be a boring term – but it’s a vitally important one

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Having quenched his thirst and sated his hunger at the Firenze Hog Roast, the Networking Knight and his faithful horse Valiant are once again attending to his quest.

Crossing a sun-dappled, woodland glade, the Networking Knight sees a woman bent over a boiling cauldron. Curious he calls over “Hail Fair Maiden, what potion are you preparing”. As she turns to answer, the Networking Knight recognises the fair White Witch, the Lady Ruth.

She curtsey’s deeply and replies “Morning good Knight, I’m busy preparing a solution of coffea to cure my Lord John’s chronic insomnia. As you know with my remedies like cures like.” “By the by” Ruth continued “thank you for sorting out the buildings and contents Insurance for Belsay Towers. The other evil Insurance Barons simply would not help, as I run my clinic for the sick from home and they were trying to Rob me blind, the Robbing B…arons. Thank goodness that you came along and slashed my premiums in HALF for much better cover… How may I ever thank you?”

“Well… you could stop skipping around for a moment…. and talk to your family, friends and neighbours who own their own homes and ask if I could help them to slash their costs too. It doesn’t matter when their insurance is due or where in the UK they live, Valiant will get me there.”And with a weary look from Valiant, the Networking Knight rode off, secure in the knowledge that he was fulfilling his quest to protect people while helping them to save more too.

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I’ll admit that Home insurance isn’t the most exciting of topics but it’s an important one. And with winter drawing in, bringing darker evenings, home insurance claims are expected to peak due to adverse weather and an increase in the number of burglaries.

As a result, ensuring you have adequate home insurance in place is even more important!

So I’ve put together a list of the biggest home insurance blunders we’re all prone to making:

1. Not having insurance in the first place

The first mistake is not to have a home insurance policy in the first place.

It’s estimated that over a fifth of households in the UK have no insurance protection in place. This is partly because many (42%) feel they can’t afford to take out a policy.

I can understand that. But more than a fifth haven’t got any just because they don’t think home insurance is important and 18% apparently don’t believe they have anything worth insuring! Meanwhile, 15%  don’t have any insurance simply because it’s not a legal requirement.

As an old policeman this worries me. I’ve seen the ‘worst happening’ many, many times and if you take just one example – a house fire, people are always amazed at just how much it costs to replace all of their belongings.

2. Underinsuring your possessions

Even if you do have home insurance, many of us fail to have enough insurance. In fact, its estimated that on average, we’re underinsured by a whopping £4,650!

However, if you don’t have enough insurance in place, and you did need to claim, your insurer may assess your property and only pay out in proportion to what you’re covered for.

Of course, it can be really difficult to work out exactly how much all of your possessions are worth. After all, it’s easy to think a wardrobe of clothes is far less valuable than it actually is, and it’s easy to exclude items you have in say the garden or shed.

I advise my clients to go through their home’s one room at a time. Start by splitting each room into three ‘zones’ – High. Middle and Low. Working your way around each room 360° making a note of everything, you’ll be amazed at how much you actually possess! I also recommend you make sure you value everything by finding out how much it would cost to replace the item.

Alternatively, if you really want to ensure you’re fully covered, make sure you opt for a policy that offers unlimited cover as you won’t have to specify a limit to the value of your property.

3. Thinking the cheapest option is best

All of us want to keep our costs to a minimum. However, opting for the cheapest home insurance policy isn’t necessarily the best solution.

Some home insurers are increasingly offering certain aspects of cover as optional extras rather than as standard features. So if you’re choosing the cheapest policy, there’s a good chance you might not be covered for everything you need to be. For example, many policies now include accidental damage as an optional extra.

So, if you want to ensure you’re fully covered, you may need to pay that little bit extra. Make sure you explain your requirements carefully to your Broker and read the terms and conditions of the policy carefully so you know exactly what you’re covered for.

4. Forgetting about personal possessions cover

Leading on from this, you also need to check whether your insurance includes personal possessions cover. This protects your belongings when they are outside your home.

These days we’re all prone to carrying around a lot of valuable items – mobile phones, your iPod/iPad, wallet, expensive watches, handbag, and so on. So making sure these items will be covered when you step outside your front door is a very wise move.

5. Forgetting about single item limits

Most insurers automatically cover valuables up to a certain amount, typically around £1,500. I always offer policies with a much higher cover but this is the industry standard typically £4 – 5,000.

So if you have an item that’s worth more than this limit, you need to get it named separately on your policy. Yes, this will push up your premiums, but you need to do this to ensure you’re covered. If you’re not, the insurer won’t pay out in the event of a claim – which means you could lose thousands of pounds simply by failing to spot this clause!

To keep your costs down, I always advise my clients to shop around themselves to find the best deals and THEN come to me, as I’ll always beat the best deal you can find, with the right policy for your needs. If I can’t… I’ll tell you – it hasn’t happened yet!

6. Paying monthly

You might think that spreading your costs and paying for your home insurance in monthly instalments is a good idea. But for many policies you’ll find if you do this, you’ll end up paying more in the long run because interest will be added to your payments.

That’s not the case with my policies, as we do not penalise at all for paying monthly by Direct Debit.

7. Staying loyal

When your home insurance policy is up for renewal, don’t simply ignore the letter you receive from your insurer and let your policy roll over for another year. Insurers tend to offer their best deals to new customers only and then push the premiums up in the second year. So even if you had a good deal for the first year, chances are you’ll pay a considerable sum more in the second.

I always check that my clients are receiving the best deal currently available for them and their needs. However I still advise them to do their own research as well and compare various home insurance policies online, to see if they can get a better deal elsewhere! If they can, I guarantee to beat it.

8. Making too many claims

Finally, you might think it doesn’t matter how many claims you make on your insurance, but unfortunately, that’s not the case.

If, over a period of three years, you make three claims on your home insurance policy, you’re likely to find it much harder to get insurance. Some insurers frown upon this and as a result, they will refuse to issue you with a quote when you come to renew your policy. And those that do are likely to charge you much higher premiums.

So to avoid this, try not to make a claim unless you really need to.

9. Making your Home Secure

If you can do so, make sure your home has the correct window and door locks. It will help to have a smoke detector and an intruder alarm fitted. There are some excellent preventative ideas on a web site from my old Police Force – Northumbria

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