You are here: Home - Insurance - News -

Tornado buffets the underinsured

0
Written by:
12/12/2006

The recent tornado in the London suburb of Kensal Rise has highlighted alarming gaps in people’s building and content insurance cover for such events.

The Government already knows from its Family Expenditure Survey that one in four householders does not have home contents insurance, so it looks likely that some of the 100 families whose homes were damaged by the freak storm will have to shell out their own money to replace and repair damaged items.

Most of the buildings will be covered, as mortgage lenders make this cover compulsory when people take out a homeloan, but having no, or inadequate contents insurance, is a far more serious problem.

Malcolm Tarling of the Association of British Insurers (ABI) explained the distinction between building and content insurance. “If you could turn a house upside down and shake it, anything that fell out would be covered by the contents policy. Building insurance covers the bricks and mortar – contents covers what is inside.”

Some homes have been so badly damaged that residents will have to live elsewhere while surveyors assess the possibility of their repair – a contingency covered by many home insurance UK policies. “But there will be limits,” pointed out Tarling. “Most will cover the cost of alternative accommodation up to a specified limit, perhaps 20% of the sum insured.”

 

 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Blair sharpens resolve to axe red tape

Red tape is costing the UK investment sector and the general economy around £14bn a year and Tony Blair has announced...

Close