Britons washed out with debt
With bad weather lashing at our windows throughout spring and summer, unexpected debt could be closer to home than we think.
Over 257,000 people are turned down by their insurance companies each year, as their insurance does not cover adverse weather conditions.
On June 25th, over 8,500 claims were made to Abbey, regarding flood damage which caused internal and external damage to peoples homes.
People need to be aware of the exclusions and limitations on their policies, as flooding could cause a huge debt problem along with a nasty shock if claims are rejected.
Those who do successfully make a claim could also expect the price of their premiums to rise, which could add to debt problems.
Most policies will advise that expensive items should be taken upstairs so as water cannot cause damage, and strong efforts should be undertaken to satisfy an insurer that everything was done to keep costs to a minimum.
Ideally you should have ensured that all of your items were valued at their full replacement cost, rather than the price that they would fetch at the current market value.
Figures show that the interior of a typical family home now estimates to the value of £41,914 which is a substantial increase to the figures calculated in 1986. This could be an area where consumers are severely underinsured. Many opt for minumum cover at just £15000 which could leave them underinsured by up to £26000.
If you live in an area which is prone to severe flooding, ensure that your insurance policy is covered for this. If it isn’t, you could find that money saved for a ‘rainy day’ could be soaked up for that very reason.
Savings News posted on 03/09/2007 10:16:15
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