Posts Tagged ‘insurance policy’

Insurance cover proves hard to get as terrorism continues to grab the headlines.

Friday, December 5th, 2008

As another terror campaign hits the Indian city of Mumbai (formerly known as Bombay) we find ourselves asking ourselves the question, are we insured for terrorism? According to the article “Terrorism: the more attacks, the less insurers covering you for it” ‘terrorism insurance’ is difficult to find.

Norwich Union, immediately the 07/07 bombings hit London with a terror campaign, were observed amending the home insurance policy content. Their new wording stated clearly and concisely that terrorism acts were not to be covered. No fewer than sixteen large insurance companies followed suit stating clearly that terrorism could not be insured against.

Despite the likelihood of a terrorist attack being very small, when they do happen, all the usual risk models go out the window. In terms of monetary and financial value, insurance is engineered to protect against the threat of the probable to the very improbable. Terrorist attacks are considered extraordinary events and so it is difficult for any insurance company to realistically account for it. One terrorist attack is capable of being highly catastrophic within a concentrated and minimal period of time and so is difficult to measure.

The cost of the damage of the IRA attack on the Manchester Shopping Centre in 1996 exceeded £200 million while the Canary Wharf bomb attack caused over a hundred million.

The government are looking at ways to encourage our insurance companies with some sort of encouragement to provide terrorist cover. Once such incentive is to get insurance companies to pool their resources. According to an article in the Telegraph following 9/11, negotiations have taken place instigated by the government between insurers and something called Pool Re. Pool Re is a scheme whereby insurance companies and the Government join forces to provide a guarantee that any losses brought about by acts of terrorism to enterprises will be covered.

In the meantime, it is very difficult to come by terrorism insurance although the situation does seem to be in a state of elementary metamorphosis. Although terrorism cover is practically impossible to come by, you may be able to achieve it through your travel insurance policy (check your small print for confirmation!)

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Posted in General, Home & Contents Insurance, Travel Insurance | No Comments »

How much is your insurance really worth?

Saturday, November 29th, 2008

You may not have the insurance you think you have through no fault of your own, according to the article “You’re covered – what could possibly go wrong?” When booking insurance for a gap year or an ordinary trip abroad several factors come into play to present the details of your insurance cover in a less than clear light. We need to know exactly what we are covered for.

A Medicare International survey recently produced information that confirmed people taking out an insurance policy were to a greater extent concerned that their healthcare was provided for. Twenty per cent of respondents replied their valuables were more important when it came to cover and the remaining eighty per cent were essentially after healthcare provision.

On a gap year or holiday abroad, problems with healthcare are the worst and most expensive situations that can happen to you. Should something go wrong in far off climes where you require medical provision, if your insurance is not adequate, this would inevitably lead to an absolute disaster. With medical bills to pay and repatriation required, if your travel insurance lets you down this is nightmare territory!

Always read the small print when about to set off on a gap year expedition or you could come disastrously unstuck. The story about UK student James Pinnington who had a scooter accident in a remote Vietnamese village is a shocking but all too common one. He purchased insurance that he believed would be decent coverage because he believed in the brand. Unfortunately, there was a stipulation in the policy that he wasn’t aware of, that it was necessary to possess a full UK MOTORCYCLE licence (as opposed to a full UK car drivers licence which James did in fact have). Due to this James was not able to return to the UK on the cover he bought, instead out of their own pockets, the Pinnington family stumped up the cost of £25,000.

The Consumer Action Group confirmed that this key piece of information should have been supplied in their policy accompanying travel brochure.

Medicare International confirm that many of these insurance policies are on the market today. They are travel policies with other items like healthcare ‘thrown in’. They are popular with young people in particular because they are quickly drawn up with a minimum of hassle and consequently the small print is rarely read. They insist that this situation can be avoided simply by taking out specialist medical insurance while keeping travel insurance and cover for possessions separate. Avoid hybrid insurance cover where everything is thrown in without discussing the vital points of information and reading the small print.

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Posted in Travel Insurance | No Comments »

Accidents happen! Get ready for Christmas!

Saturday, November 29th, 2008

Getting ready for Christmas involves much more than ordering the turkey and seeing the reindeers according to the article “All I want for Christmas is …”. In preparing for Christmas we need to ensure that we have adequate insurance cover in case the freezer breaks down or the house gets burgled. The Norwich and Peterborough Building Society are concerned that we are overlooking the necessity of protection throughout a time when accidents and oversights could have drastic consequences. While it is not exactly getting into the festive spirit a bit of common sense in advance will provide peace of mind and save us from adding to our Christmas anxieties. Approaching Christmas and writing our shopping lists, this is the perfect time to address our concerns rather than later on.

The article goes on to provide a series of recommendations to ensure you enjoy a stress free Christmas including the matter of house security (what with all the presents that will be sat under the tree).

One top suggestion is that we make sure our insurance cover includes accidental damage. Imagine the scene, the secret stash of Babycham has been discovered by Uncle Bob. Arms a-flaying to the tunes of the Elvis “White Christmas” LP at teatime and things could get extremely messy!

Another suggestion is to check your insurance policy covers your freezer packed with food breaking down. In most houses in the UK, that could be hundreds of pounds of food down the pan so its very worthwhile.

Additional recommendations include taking your presents out of full view of the window and the outside world, leaving your central heating on (very low) to ensure your pipes don’t freeze and wreck the house when a pipe bursts and purchase some security lights for the exterior of your house.

In the event of a disaster happening over the Christmas period, what you need to be ready to do is make repairs to ensure your home is weather proofed and safe and keep all receipts ready for when your insurance company requests them. Make sure you find out (in advance) the Claims Assistance number, a phone book with tradesmen contact information and last but not least read the small print of your insurance cover to make sure it suits.

Merry Christmas!

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Posted in Home & Contents Insurance | No Comments »

Don’t Get Pi$$ed On The Piste

Sunday, February 3rd, 2008

Amid claims that British holidaymakers are taking loutish behaviour to the winter sports resorts comes news that Swiss piste police have introduced speed cameras in some popular resorts. Their aim is to slow down speeding or drunken skiers in an attempt to reduce a worrying increase in the numbers of deaths and serious injuries on the slopes.

Après ski is recognised as an essential ingredient of the winter snow scene, but insurers are keen to point out that skiing after too many drinks invalidates your ski insurance cover. Insurance policy terms and conditions state that cover ceases in any incident “caused by the direct or indirect effect of you using alcohol or solvents or you being under the influence of drugs.”

A story in the Telegraph points out that even with the European Health Insurance Card (EHIC) there could still be significant expenses for mountain rescue, ambulance rides and flights home. The story is even worse in the US, in fact you’d be totally mad to ski there uninsured simply because medical fees are simply sky high.

When arranging you winter sports insurance remember that an annual policy with ski cover will be about the same price as two separate policies if planning to go abroad once during the summer. If there’s the chance of additional weekends in Europe then go for the annual policy, you’ll save money and it’s one less thing to worry about when planning a trip.

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Pet Insurance For The Old Timers – At A Price

Tuesday, January 29th, 2008

Liverpool Victoria have introduced a policy that has no upper age limit. Pet insurance policies vary widely from insurer to insurer but generally you’ll find that a pet insurance company will not take on a new dog after age 8 or 9 and maybe a couple of years longer for a cat. They will often renew an existing policy beyond that age but with restrictions on certain parts of the policy.The new Liverpool Victoria policy allows you to take out insurance on a pet of any age over 8 weeks, but of course there are restrictions.

Cheaper (or should that be less expensive) pet insurance policies tend to fall into two camps, either they restrict payment on any single ailment to 12 months or they restrict the maximum amount that they will pay out for each condition – or even a combination of the two.

The new Liverpool Vic product offers both choices. Cheaper of the two restricts payment to twelve months on any single ailment with a top limit of £5,000 whilst a more expensive option offers a total of £5,000 for a single ailment with no time limit. In both cases the excess payable on any claim is £60. An average annual premium for a 10-year-old cat on the Essential plan is £106 and £146 on Premier whilst a Labrador dog (prone to leg ailments in old age) is £198 and £306.

Now, as with most insurance, you have a decision to make. Does it make sense to insure or would you be better off sitting it out and stumping up for the vet bill?. It really is a toss of the coin thing, who knows what’s going to happen in the future?. For sure, there are certain people who much prefer to know that whatever happens to their pet, it will be paid for by the insurance company and obviously for those people pet insurance is essential.

In my own case I bought my dog, A Hungarian Vizsla, from the breeder when he was 4 months old. The breeder had insured him for a year and when that expired I let the policy lapse. Up until about age 9 he didn’t have any unexpected visits to the vet, just the normal booster injections etc which aren’t paid for by pet insurance in any case. Then at about 10 years of age he developed a limp in his shoulder. A few visits to specialists who all scratched their heads and said that they couldn’t see what the problem was ate up a thousand or more. Medication has cost a bit more. To be honest I don’t know if I’d have been better off with insurance. What you do have to remember that the insurance company will not cover existing medical conditions, so you can’t wait until the dog starts hobbling before insuring him. My fella’s now over 14 and he’s been worth every penny, he’s my best friend.

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