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In the harsh economic climate we find ourselves in, there is a tendency to find areas where we can make cutbacks and save a little money. Worryingly however, the Association of British Insurers have found that as many as 25% of homeowners are choosing not to purchase contents insurance for their property.
This disturbing shortfall in insurance could leave many people struggling in the case of a natural disaster. Homeowners could stand to lose thousands, if not tens of thousands of pounds worth of belongings should the unexpected happen. Floods are one such example, often highly unpredictable and incredibly devastating.
Water can be a hugely damaging force. Not only will carpets, furniture and electrical items at ground level be ruined, but your property could also suffer structural issues as a result of prolonged water damage. Costs can easily mount up; whilst the inconvenience of not being able to access your home can be upsetting, it can be significantly increased by the knowledge that you have insufficient insurance coverage.
Phil Morgan from Morgan Clark, the UK’s leading independent firm of Loss Assessors, discussed the findings of the Association of British Insurers and the potential impact for homeowners everywhere; “At times of recession people are looking to cut costs and contents insurance is one area where people look to make a saving.”
Mr. Morgan continued “Figures from the Association of British Insurers 2008 report showed 25% of homeowners do not have contents insurance. Even with a flood of just 2-3 feet deep the average household would lose contents on the ground floor worth £10,000 - £20,000.”
This shortfall in insurance could leave many households struggling to rebuild if they were to be struck by flood waters. Phil Morgan highlights recent research which showed that around 4 million people across the UK are at risk of flooding in their homes, with an estimated value of £213.7 billion worth of property. He therefore suggests that “Contents insurance premiums are an area where the homeowners should not be looking to make a saving.”
So whilst consumers are still looking to save money and avoid any unnecessary expense, this latest evidence shows that it shouldn’t be done to the detriment of essential home cover. The long-term impact of losing thousands of pounds worth of possessions and repairing the damage caused by flooding, far outweigh the short-term benefits of saving a little each month on insurance premiums.
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http://www.prlog.org/
