Home insurance - keeping it cheap by Chris Rowlands

Most consumers assume that the home insurance industry generates huge profits on a continuous basis, yet this is not always the case. Last year, the industry faced £2bn-worth of claims from home insurance policyholders.

Of this amount, a quarter was met through customers' own policy excesses, the amount policyholders agree to pay before the rest of their claim is paid by their insurer. This left the industry with £1.5bn to pay.

Yet, despite predictions that average premiums would rise to offset these losses there have only been small increases noted so far, in large measure because the market remains so competitive that insurers don't dare raise prices too high for fear of losing business.

However, this may not always remain the case, as this year's insurance claims bill look set to be even higher. The terrible flooding that followed heavy rain storms earlier this summer is estimated to have caused an estimated £2bn to 3bn of damage.

While many householders in affected areas did not have cover in place - and were therefore unable to make a claim - insurers still face another hefty set of bills.

The unfortunate fact is that with the climate in a constant state of change, freak weather events such as storms, tornados and flash flooding are becoming increasingly common.

For those unfortunate enough not to have a home insurance policy in place this could have been costly to say the least. Indeed the average repair bill for this summer's flooding could fall anywhere between £10,000 and £20,000.

Inevitably, premiums will have to rise to reflect this strain on insurers' costs, particularly for policyholders living in flood-prone areas. The question is: how can you keep your house insurance cheap? As all insurance comes down to a matter of risk assessment you need to make you house as secure as possible in terms of structure and safety.

If you live in a flood plain area this will ultimately affect your premium price as you are at increased risk from flood damage.

Unfortunately there is little you can do to protect against severe weather conditions apart from making sure your property is kept well maintained in the case of the roof for example. You can however keep a close eye on the weather forecast for flood warnings if you live in a property built on a flood plain.

It is not too difficult to acquire sandbags and use these to protect your property once flooding becomes a strong possibility. Also, you can move possessions of a high value to an upstairs floor or attic to avoid water damage.

Water is not the only way in which to suffer massive damage to your home. You should always consider fire safety in a home and install at least one fire alarm on each floor and if possible one in every high risk area such as the kitchen and hallway.

It is prudent to have an escape plan in place in case you are trapped in a particular area of the house or on an upstairs floor.

In the event of your property being damaged by a storm, flooding or fire or even burgled, it is a good idea to have photographs of the content of each room stored safely, if possible with a relative or family friend.

Finally, to protect your contents from theft, remember to keep your property as secure as possible by installing extra locks where necessary, security lights and an alarm system (this usually helps to decrease insurance premium) and you should be pretty well prepared for "almost" any eventuality.
About the Author

Chris Rowlands is a UK-based author with experience within the financial industry, centering on the insurance sector.

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A Look at Life Insurance by Victor Ezeaku

Every year, billions of dollars is spent on life insurance. In today's world, families are buying more life insurance that ever before. The demand for insurance has really made the cost for insurance to skyrocket. Since life insurance is needed by almost every family, the demand for life insurance will continue to increase.

Obviously, to some individuals, live insurance is a priority over other insurance like auto insurance, property insurance, etc. But what surprises me most is that the average insurance holder is not aware of how the insurance policy works. Probably, because insurance policies uses terms that are not familiar to the average person who needs insurance.

This not withstanding, millions of people keep on buying insurance. Many are aware of the importance of life insurance. We all need life insurance because of the uncertainty of life. We can not really predict what will happen in the next moment.

The basic truth about life insurance is that it can not insure a person against death but it can protect dependents of a death person against some economic losses resulting from the death of a bread winner in a family. Life insurance will ensure that the dependents of a dead person don't suffer much loss.

The term life insurance doesn't warrant that the insurance will cover one for a life time. Life insurance is similar to car insurance. The usual term policy can be five or ten years or more depending on the choice of an individual. If the insured person dies after the term is up, his family gets nothing

Visit http://car-insurance-us.blogspot.com/ and http://insurance-for-me.net for more information on Your Insurance Needs
About the Author

Victor is the owner of the Car Insurance Blog. A car insurance blog dedicated to providing auto insurance information to anybody who needs information on car or auto insurance. You can also find information on general insurance at http://insurance-for-me.net/

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