New research from the ABI indicates that as global temperatures rise, so will the cost of property insurance and for the UK specifically, the insured cost of flood and windstorm damage could increase significantly.
The experts in climate catastrophe risks, AIR Worldwide Corporation and the Met Office, produced The Financial Risks of Climate Change for the ABI which examines the financial implications of the increasing temperatures on the insured cost of flood and windstorm damage in the UK.

Spettro have over 38 years of experience in dealing with claims for flood damage and are prepared for the oncoming gloom of climate change.

This study brings to light a shocking potential rise of 14% in annual insured losses from river flooding and flash floods, based on a four-degree rise in global temperatures which could occur as early as 2060.  Windstorm losses are even more threatening with a possible rise of 25% due to changes in ‘storm tracks’, along which cyclones travel.

Mrs Middleton from Surrey points out how Spettro thinks ahead in practice: “I would like to say how pleased I was with the service provided by Spettro, in particular Graham Calladine who gave me some very helpful advice about what we can do to prevent flooding in the future.  You provided a far better service than the restoration company who were originally appointed by our insurance company, much needed at a stressful time!”

According to the research, the worst affected areas of the UK are likely to be Wales and the south-west regions; for the latter, average annual flood and wind damage insured losses could rise by 29% and 24% respectively.


 

Research published in June by the Association of British Insurers (ABI) reveals that almost a quarter of people admit to cancelling or not renewing their contents insurance to save money. Other insurances are also being ditched, despite the fear of being unable to cope with the unexpected being the biggest single concern for families in the recession.

The survey* highlights that:

• Nearly a quarter of people (22%) say that to save money in the last year they have cancelled or not renewed their home contents insurance. 17% say that they have cancelled or not renewed their buildings cover. In Scotland, the figures rise to 28% for contents and 21% for buildings.
• 13% have cancelled their life insurance.
• One in five (21%) say that they are seriously considering reducing or stopping saving.

This lack of cover is leaving many families even more exposed to their biggest fear in the recession: nearly half (49%) of those surveyed said that they currently worry about their inability to cope with a sudden event, such as a burglary.

With Government figures showing a 4% rise in home burglaries in the last quarter of 2008, the ABI warns that families who are tempted to save money by cutting back on their home insurance should think again.

Nick Starling, the ABI’s Director of General Insurance and Health, said:
”Many families will be looking to trim their budgets as the recession bites but cutting back on home insurance is a false economy. Last year insurers paid over 6,000 claims, paying out some £7 million, every week, to burglary victims. Without insurance, becoming another crime statistic could plunge you deeper into financial trouble, from which it may take years to recover.

“The insurance market remains very competitive, so shopping around can help you get a good deal, while ensuring that you are not at the mercy of the unexpected.”

Consider and prepare for the unexpected

Businesses and homeowners battling through the recession are being hit by an increasing fire threat according to the most recent figures released.  The cost of fire damage in 2008 rose by 16% on 2007 to a record £1.3 billion –  £3.4 million every day.

The figures show that in 2008:

• Commercial fire damage cost £865 million, up 15% on the previous year. School fires alone cost £33 million, with a serious school fire occurring every month on average.
• Fire damage to homes cost £408 million, up 17% on the previous year.

Graham Calladine the director of Spettro, is alarmed by the increase in insurance claims coming from property fires:
“These figures really highlight both the importance of fire insurance, and reducing and managing the fire risk. Research shows that arson tends to increase during an economic downturn. If it is a fire started on purpose to recover from financial difficulties it is important to remember that claims assessors use increasingly speciliased equipment that can invalidate a claim by proving arson but also that starting fires endangers lives. If a fire is started by someone intending malicious damage or to cover a burglary, it is important to be fully covered to recuperate losses.”

Spettro deals with claims for flood, fire, storm, impact damage and burglaries. They also are involved in rental property refurbishments and detecting the origin of water leaks. Spettro Limited is regulated by the Financial Services Authority which allows them to loss assess and mediate with all the major insurance companies, a service which is free of charge to the insured.


* These are the findings from a national survey of over 2,000 adults conducted by YouGov, on behalf of the ABI.
 

In 2005 Surrey recorded 2,216 fires with 678 starting in dwellings and 99 starting in private garages and sheds*.  Mr Salter in Croydon knows only too well the danger of fires started in garden sheds after an enjoyable BBQ turned into a house-warming!

Mr Salter had a family BBQ last summer, when he finished for the evening he placed the used charcoal in his garden shed. Several hours later the shed was alight and as the flames grew higher they set fire to a nearby tree which, in turn, set fire to the fascia board on the end elevation of the house. Mr Salter explains, “The fire was fanned by the night breeze and spread quickly across the roof before we noticed what was happening.”

The fire was eventually put out by attending fire fighters who used several thousand gallons of water which then caused substantial damage to the rest of the house. Local company Spettro were called in the next morning to assess the damage and spent 3 months returning the property to its original state. “After such a shock, we were so pleased to have someone sort out the insurance claims paperwork and get on with fixing the house straight away!”

Graham Calladine, the Spettro director, offers a few tips on BBQ safety:

1)    Avoid setting up the BBQ in draughty locations and keep away from flammable materials such as wooden fences and gazebos;
2)    Keep children, pets and guests away from the BBQ – even once the BBQ is over it stays hot for a long time;
3)    Be prepared - have a fire blanket and water close to hand;
4)    Don’t mix raw meats and make sure everything is completely cooked through to avoid food poisoning – fire isn’t the only danger at a BBQ.
5)    Don’t be caught drunk in charge of a BBQ - save your tipple until after the feast!
6)    Don’t put your BBQ away until it is completely cold – dampen embers with water.

Additional Info
In the UK in 2005 there were 35,300 fires recorded in buildings other than dwellings, of which 21,200 were accidentally started, and out of 7,000 which started in private garages and sheds 1,700 were started due to the careless handling of fire and hot substances *.

* Fire Statistics, United Kingdom 2005 – Published 26th March 2007 by the Department for Communities and Local Government, London

It seems that burglars are getting more creative when trying to access homes. This week one burglar in Mansfield climbed onto the roof of a house, removed some loose tiles and slipped through the hole to see what he could find!  

Graham Calladine,the director of Spettro,  was asked to repair the damage to the roof and, after getting over the shock of seeing such an odd break-in, suggests a few ways of keeping your home secure. 

1) Keeping your house in good repair is a great start. If an opportunist burglar can see an easy way to enter your home through a rotten window frame then all the better! 

2) Don’t forget to close your upstairs windows as well as the downstairs ones – there are several reasons for the name ‘cat burglar’! 

3) Always use good quality locks on doors and windows - they are often the first line of defence and are mandatory with some insurance companies.

4) If you are going away on holiday then ask a neighbour to pop in and pick up your post from the mat – post piling up is a clear giveaway that your house is vacant. 

5) Park your car close up to your garage door – garage burglaries are extremely common as people store so many valuables in there as space is at a premium in the house.