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Guest
Home owners are being questioned about when is the right time to make sure that the home is adequately protected with a comprehensive home insurance policy.
Many people may argue in the affirmative while some will simply choose to disagree. But in deciding what to do it is wise we think carefully and deeply.
Uncertainty
A major feature of the credit crunch is that there is general uncertainty in terms of jobs, finances and even health. People are very stressed about all of this because they are not sure what will happen the next day. Unemployment, as we have seen in the last 12 months, has reached a record level, with many more jobs likely to be cut. At present more than 2.6 million people have lost their jobs since the beginning of the recession.
The trouble with job losses is that it means people are substantially forced to cut down their budgets as they struggle with bills and mounting debts. Several loans since the beginning of the downturn have begun to either disappeared or become increasingly expensive and unattainable to borrowers. Before the credit crisis and its initial stage, credit facilities were so easily accessible that many people were able to run up huge debts via secured and unsecured loans. In addition, credit cards were used to their maximum, as consumers went on spending to their limits and thus accumulated huge repayment balances. And as things get harder, payment becomes even more difficult.
Dealing with personal financial crisis
In dealing with these and many other difficulties, under the climate of the recession people are cutting down on their expenses in order to make their budgets – which are already stretched to breaking point – more manageable. Many, in what is clearly a desperate bid for survival, tend to axe essential needs like insurance policies. Often life insurance, as well as travel insurance cover and health insurance policies are the most hit, but recent findings have shown that home insurance policies are increasingly affected.
The implication of not having any of these policies or cutting back in order to save money is grave. This is because while some policyholders are taking such step in the hope that they would save money and restore the policy when things get better, they could end paying more in the future. First, they may even end up having to deal with an unforeseen event while they are uninsured and foot the bills from their own pocket. Second, in the future they may spend a lot more money restoring the policy and discover they have not saved any money. Summer floods
As much as we long for sunny summer weather as a break from the wet spring, we must always have at the back of our minds, that summer in the UK over the past few years has always come with floods.
Insurers have been so worried about the cost of floods, they considered that unless something urgent was done several homes would become uninsurable. The government went on to set up think-tanks which would come up with means of effectively combating the perennial problem.
While steps are taken to resolve the problem we must not leave it all in the hands of the government or other stakeholders, as we are directly affected. We certainly can’t afford to leave our homes without adequate home insurance. Even if we are not considering the possibility of floods wreaking havoc and affecting us, what about accidental damage like fire or burst pipes and the like? How are we hoping to bear the expenses of any damage arising from a simple but expensive domestic accident?
Rather than cut back on home insurance policies homeowners should, at this time, aim to strengthen the level of cover they have and ensure that their homes and contents are sufficiently covered. This is an honest piece of advice that will save property owners some money and can alleviate worries.
By: Musaaliyu
Many people may argue in the affirmative while some will simply choose to disagree. But in deciding what to do it is wise we think carefully and deeply.
Uncertainty
A major feature of the credit crunch is that there is general uncertainty in terms of jobs, finances and even health. People are very stressed about all of this because they are not sure what will happen the next day. Unemployment, as we have seen in the last 12 months, has reached a record level, with many more jobs likely to be cut. At present more than 2.6 million people have lost their jobs since the beginning of the recession.
The trouble with job losses is that it means people are substantially forced to cut down their budgets as they struggle with bills and mounting debts. Several loans since the beginning of the downturn have begun to either disappeared or become increasingly expensive and unattainable to borrowers. Before the credit crisis and its initial stage, credit facilities were so easily accessible that many people were able to run up huge debts via secured and unsecured loans. In addition, credit cards were used to their maximum, as consumers went on spending to their limits and thus accumulated huge repayment balances. And as things get harder, payment becomes even more difficult.
Dealing with personal financial crisis
In dealing with these and many other difficulties, under the climate of the recession people are cutting down on their expenses in order to make their budgets – which are already stretched to breaking point – more manageable. Many, in what is clearly a desperate bid for survival, tend to axe essential needs like insurance policies. Often life insurance, as well as travel insurance cover and health insurance policies are the most hit, but recent findings have shown that home insurance policies are increasingly affected.
The implication of not having any of these policies or cutting back in order to save money is grave. This is because while some policyholders are taking such step in the hope that they would save money and restore the policy when things get better, they could end paying more in the future. First, they may even end up having to deal with an unforeseen event while they are uninsured and foot the bills from their own pocket. Second, in the future they may spend a lot more money restoring the policy and discover they have not saved any money. Summer floods
As much as we long for sunny summer weather as a break from the wet spring, we must always have at the back of our minds, that summer in the UK over the past few years has always come with floods.
Insurers have been so worried about the cost of floods, they considered that unless something urgent was done several homes would become uninsurable. The government went on to set up think-tanks which would come up with means of effectively combating the perennial problem.
While steps are taken to resolve the problem we must not leave it all in the hands of the government or other stakeholders, as we are directly affected. We certainly can’t afford to leave our homes without adequate home insurance. Even if we are not considering the possibility of floods wreaking havoc and affecting us, what about accidental damage like fire or burst pipes and the like? How are we hoping to bear the expenses of any damage arising from a simple but expensive domestic accident?
Rather than cut back on home insurance policies homeowners should, at this time, aim to strengthen the level of cover they have and ensure that their homes and contents are sufficiently covered. This is an honest piece of advice that will save property owners some money and can alleviate worries.
By: Musaaliyu