R I C H A R D S & C O
S O L I C I T O R S
news and information
Warning to under-insured homeowners
Homeowners collectively face an annual bill of £126 million as a result of fires in their property.
About a third of the damage which was caused by fire during 2002-2003 was not covered by insurance, according to supermarket giant Asda.
Figures from the Association of British Insurers estimate that one in five homes does not have any contents insurance, rising to one in three in London.
But Asda said many people with cover also faced a shortfall between the cost of damage and the amount their insurer would pay out because they had underestimated the value of their possessions.
It said the contents of the typical home had increased by around 40% during the past decade to average £42,000.
Gev Lynott, director of financial services at Asda, said: "The average bill for fire damage in the home is around £900, but can still rise to thousands. "If you are under-insured you could be looking at a hefty bill, on top of the stress of seeing your personal effects destroyed."
The group is also urging homeowners to fit smoke alarms to their property after research showed one in five people do not have one. Mr Lynott said: "Smoke alarms are inexpensive, easy to install and give you vital extra time to escape in the event of a fire."
AOL: September 2004
