- 18
- Nov
As the country teeters on the brink of recession, Abbey has urged people not to forget the importance of home insurance cover as they attempt to safeguard their financial security.
The firm explained that while many consumers main priority may be incubating their nest egg during these difficult times, it is likely that as people become more hard done by, there is likely to be a rise in the number of burglaries.
According to the group, there is a historic link between the financial fortunes of the country and the rates of burglaries and other instances of theft. Its records show that during the last recession, between May 1990 and March 1992, the number of residential break-ins rose by 33.8 per cent. So too, official figures from the British Crime Survey also show a similar heightened risk of burglary.
And in recent months, home secretary Jacqui Smith has warned that Britain may again need to brace itself against an impending spate of burglaries as more people are driven to the wall financially. In a public letter written in August this year, she alerted homeowners to the link between economic adversity and rises in acquisitive crimes such as burglary, theft and robbery.
Meanwhile, Abbey warned that those consumers who lack adequate insurance could find the stress of being burgled compounded by the financial constraints of replacing stolen items. This in turn could impact on their ability to make mortgage contributions or pay off credit cards and personal loans. In a bid to prevent such a scenario, the group urged homeowners to take out cover quickly to avoid being caught out by the recession and a concomitant rise in crime.
Responding to Ms Smiths suggestion that burglary rates will rise seven per cent this year and a further two per cent in 2009, Thierry Campet, sales and marketing director at Abbey Insurance, said that the admission should serve as a warning to consumers without cover.
“When household budgets tighten and families look to cut back on financial expenditure there are the usual outgoings that people feel they can cut back on. Wrongly, many people believe home insurance is one of these. However during these times, protection is increasingly important and should not be overlooked. At this stage, not many insurance policies provide cover for an unlimited amount. Policies without this provision may not cover you for the full amount of your home contents. Look for peace of mind with an unlimited sum policy,” he advised.
For those without such cover, it is possible that structural repairs and replacement of items will have to be covered using personal loans or existing savings.
Consumers who are concerned about the rising risk of burglary may wish to apply for a home improvement loan in order to boost their home security. Indeed, such measures could prove particularly useful during the winter months. According to Halifax, there is a sharp rise in the number of break-ins witnessed during this period as burglars take advantage of the extended hours of darkness.
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