Insurance World

It’s hard to convince a would-be burglar not to bothering breaking into a house, when the figures relating to the sale of stolen goods say so strongly otherwise. A survey carried out by Halifax Home Insurance has revealed that one third of people buy goods that they know were potentially stolen. Why? Because the deal is too good to resist. A top range digital camera could cost Ј200 or more, if you’re offered it for Ј50 then would you be able to say no? And we’ve all seen goods going for far less than their market rate in our high streets, but do we report the criminals? Not so far.

The study estimates that 6.5 million Britons have given money to criminals on the street in exchange for stolen goods, amounting to a collective spend of around Ј247 million. The savings consumers make hit the high street, as the money’s not being spent there, which in turn affects the economy. The repercussions affect homeowners the worst, obviously, as there’s nothing to discourage burglars from giving up their illegal pastimes. Insurance companies end up paying out more they bargained for, which pushes premiums up. It’s a perpetual circle in which the only winners are those breaking the law.

So what can we do about it? The answer is obvious – don’t buy goods that you suspect might be stolen. Report people that you think may be dealing in stolen goods to the police, although this is easier said than done. And also, were you aware that if you are found to have bought an item that was burgled from a house, you could face criminal prosecution? Clearly not enough incentive to stop one third of people from making the purchase.

The survey also revealed some other interesting figures. For example, 85% of those that admitted to buying what they assumed were stolen goods, said that they didn’t actually care if they had been stolen or not. They just wanted to get a bargain.

It’s not all bad news for those worried about the moral state of Britain however, 20% of those buying potentially stolen goods on the street said they did enquire as to where the goods came from. Of course, there’s nothing to stop the vendor lying about the goods’ origins, but it’s nice to know that some people care, even if only a little bit.

There is something else we can do to stop this perpetual chain of events, although it’s not foolproof. Homeowners can improve their home security – good suggestions to avoid being a target are: join/start a neighbourhood watch scheme; invest in security lights; get a burglar alarm; and invest in high quality door and window locks.

You can also take measures to help improve your chances of regaining any stolen goods, such as marking all expensive items like TV and computers with an invisible UV pen, and taking photos of expensive items so police have a better chance of recognising and recovering the item.

Naturally, taking all the above measures and more cannot provide an absolute guarantee that thieves will be deterred, so be sure to invest in a good home and contents insurance policy. The Internet is the best place for the cheapest deals, especially as many insurers offer online discounts, and many also offer discounts for customers that take out more than one type of policy – both car and home insurance, for example.

Many of us take out holiday insurance, but few know really what it is and how it can be defined. If you know what is included, you will be able to make the most of your protection.

In general terms, holiday insurance protects a traveller’s holiday costs against adverse events such as cancellation and interruption and also reimburses medical expenses, the loss or damage of property and transit delays. Travellers are compensated if they have to cancel or interrupt their travel, they will also be covered should they need emergency medical treatment, medical evacuation and other situations.

The main categories of holiday insurance:

Delays and cancellation – including curtailment

Delay: This reimburses travellers for hotel, food or clothing expenses in the event of a flight delay. Some plans also cover costs associated with catching up with a cruise should another delay cause the traveller to miss embarkation.

Cancellation: Reimbursement comes into effect if travellers have booked and paid for a holiday, but are unable to embark because of personal illness or injury, death (of the individual or of a family member), adverse weather conditions, airline strikes, terrorism, bankruptcy, sudden unemployment, jury duty or by sustaining serious damage to their home causing it to be uninhabitable due to fire or flooding.

Interruption: Insurance companies pay money to policy holders abroad if they have to cut short their trip due to illness, death (of the traveller or a family member), weather, airline strikes, terrorism, bankruptcy, becoming unemployed, and other adverse conditions which mean that, due to events outside the control of the holiday-maker, a trip has to be curtailed.

Medical reasons

Medical and health reasons: Reimburses medical and emergency dental costs. Almost all holiday insurance plans work by reimbursing the traveller after they have paid locally for treatment. Claims are usually paid within 7 – 10 days. Pre-existing conditions are covered by most policies if the policy is purchased within (at the most) 21 days from the date the traveller made the first payment or deposit.

Medical evacuation: This provides emergency transportation to either a local hospital in the event that the traveller is unable to get there by themselves or back to a hospital near the traveller’s place of residence. If family members are covered on the same policy they can return home also.

Death of traveller

Air Flight accident – this covers death or dismemberment during an air flight only. Usually provides the highest amount of coverage due to fairly low likelihood of this occurring.

Common carrier – Covers death or dismemberment while travelling on public transport such as a plane, ferry, train bus or taxi.

Accidental death – covers death or dismemberment at any time of your trip. Usually provides the lowest amount of coverage due to a higher risk

Loss or damage of personal effects

Baggage loss – reimburses travellers for lost, stolen or damaged personal items. This coverage is usually restricted to the duration of the trip and not confined to baggage damaged or lost by the airline. There are two policy limits, total claim and per item maximum. Some policies also place limits on the type of items that can be claimed for – such as precious jewellery, laptops and sporting goods

Rental Car damage – Reimburses travellers for damage or loss to a rental vehicle. It is designed to allow the traveller to decline collision damage waiver (CDW) coverage offered by the car rental companies. Liability coverage should still be purchased through the car rental company. Rental Car Damage coverage is also often included with the credit card used to pay for the car rental which is often matches the coverage provided in the policy.

Assistance services – provides a 24-hour collect telephonel advice and assistance service to travellers. This service can be used anytime a traveller needs advice. Make sure you don’t leave home without it.

In conclusion

holiday insurance is the one product in the modern insurance-saturated world that really is essential. You will not regret taking it out, but not being insured for your travel mishaps is a source of huge regret for far too many holiday-makers every year.

Don’t leave home without your toothbrush, a sketch pad, a bar of scented soap and a holiday insurance policy!