When Disaster Strikes Are you Covered?

No matter where you live if a disaster happens in your home the effect is the same. It may be a flood or a burglary or, increasingly, freak weather conditions. It may take years to fully get over such an event. Imagine, then, having to cope without the benefit of home insurance. According to the Association of British Insurers (ABI) many households on low incomes are among those most at risk without proper home insurance.

The trade association fears those who cannot afford contents and building cover could face even graver financial difficulties in the event of an emergency. This could mean they have no way of getting their home repaired. In addition, any possessions lost are gone forever.

In an attempt to address the issue, the ABI has launched an initiative to provide affordable premiums payable in small instalments at the same time as rent collection. This will help low income households who do not own their own homes to have the peace of mind that most homeowners have. If disaster does befall them at least the insurance company will cover it. In addition, it is claimed that many landlords will benefit as tenants are less likely to fall into arrears as they are financially protected should the worst happen.

A representative of the ABI comments, "For people on low incomes, buying insurance is sometimes not a priority. However, it is often the most vulnerable who can benefit the most from insurance."

The scheme is claiming the premiums will be very small, possibly even as low as £1 per week on top of existing rent.

This could be particularly relevant as in other home insurance news; research from a large insurance company warns one in ten homes is at risk from burglary this summer while occupants are on holiday.

If you have any questions about home insurance why not ask AnswerBank at Business & Finance.