| Research published in June by the Association of | | | | unexpected." |
| British Insurers (ABI) reveals that almost a quarter of | | | | Consider and prepare for the unexpected |
| people admit to cancelling or not renewing their | | | | Businesses and homeowners battling through the |
| contents insurance and fire insurance to save money. | | | | recession are being hit by an increasing fire threat |
| Other insurances are also being ditched, despite the | | | | according to the most recent figures released. The |
| fear of being unable to cope with the unexpected | | | | cost of fire damage in 2008 rose by 16% on 2007 to |
| being the biggest single concern for families in the | | | | a record £1.3 billion - £3.4 million every |
| recession. | | | | day. So despite a drop in fire insurance claims there is |
| The survey* highlights that: | | | | still a great need to be covered |
| * Nearly a quarter of people (22%) say that to save | | | | The figures show that in 2008: |
| money in the last year they have cancelled or not | | | | * Commercial fire damage cost £865 million, up |
| renewed their home contents insurance. 17% say | | | | 15% on the previous year. School fires alone cost |
| that they have cancelled or not renewed their | | | | £33 million, with a serious school fire occurring |
| buildings cover. In Scotland, the figures rise to 28% | | | | every month on average. |
| for contents and 21% for buildings. | | | | * Fire damage to homes cost £408 million, up |
| * 13% have cancelled their life insurance. | | | | 17% on the previous year. |
| * One in five (21%) say that they are seriously | | | | Tony Smith, the founding director of Spettro, is |
| considering reducing or stopping saving. | | | | alarmed by the increase in insurance claims coming |
| This lack of cover is leaving many families even more | | | | from property fires: |
| exposed to their biggest fear in the recession: nearly | | | | "These figures really highlight both the importance of |
| half (49%) of those surveyed said that they | | | | fire insurance, and reducing and managing the fire risk. |
| currently worry about their inability to cope with a | | | | Research shows that arson tends to increase during |
| sudden event, such as a burglary. | | | | an economic downturn. If it is a fire started on |
| With Government figures showing a 4% rise in home | | | | purpose to recover from financial difficulties it is |
| burglaries in the last quarter of 2008, the ABI warns | | | | important to remember that claims assessors use |
| that families who are tempted to save money by | | | | increasingly speciliased equipment that can invalidate a |
| cutting back on their home insurance should think | | | | claim by proving arson but also that starting fires |
| again. It should also be noted that fire insurance | | | | endangers lives. If a fire is started by someone |
| claims were down by 10% last year as people have | | | | intending malicious damage or to cover a burglary, it |
| failed to renew. | | | | is important to be fully covered to recuperate |
| Nick Starling, the ABI's Director of General Insurance | | | | losses." |
| and Health, said: | | | | Spettro deals with claims for flood, fire, storm, |
| "Many families will be looking to trim their budgets as | | | | impact damage and burglaries. They also are involved |
| the recession bites but cutting back on home | | | | in rental property refurbishments and detecting the |
| insurance is a false economy. Last year insurers paid | | | | origin of water leaks. Spettro Limited is regulated by |
| over 6,000 claims, paying out some £7 million, | | | | the Financial Services Authority which allows them to |
| every week, to burglary victims. Without insurance, | | | | loss assess and mediate with all the major insurance |
| becoming another crime statistic could plunge you | | | | companies, a service which is free of charge to the |
| deeper into financial trouble, from which it may take | | | | insured. |
| years to recover. | | | | * These are the findings from a national survey of |
| "The insurance market remains very competitive, so | | | | over 2,000 adults conducted by YouGov, on behalf |
| shopping around can help you get a good deal, while | | | | of the ABI. |
| ensuring that you are not at the mercy of the | | | | |