Insurance World

Pests and vermin are costing homeowners money – a survey carried out by ICM revealed that in the last year, one in ten homeowners have had to pay a bill as a result of damage caused by the little critters. Most of the damage is caused by the five most common pests: mice, wasps, grey squirrels, rats and hornets – and which year on year invade our homes, causing all kinds of damage.

The problem is that although most home and contents insurance policies cover the results of a pest problem, for example a fire caused by chewed wiring, under the accidental damage part of the policy, they don’t cover the damage itself. So if you discover that you are sharing your house with vermin, then you will probably have to cover the associated costs yourself.

There are a few exceptions. Saga, for example, includes damage caused by squirrels in all its policies. Choose its Cover Plus policy and damage by all vermin is covered.

Esure is another notable exception, and they now offer full cover for damage from the top five most common vermin to all policy holders for an extra Ј21.99 a year. Compare that to the cost of having a hornet’s nest removed - Ј100 – or Ј150 to have rodents eradicated, and it seems like a good investment.

Peter Priestley, president of the British Pest Control Association, has seen some of the worst pest cases, the most notable being a house in Preston where the upper floor of a house completely collapsed as a result of rats chewing through the joists. In the Isle of Man, they have a particular problem with rats. One man was found dead, having fallen down the stairs – the bottom half of his torso had been eaten by rats that had entered his house.

More everyday cases involve squirrels breaking ornaments and damaging furniture – causing damage that regularly adds up to Ј4000. Mice and rats chewing through flooring is another expensive problem, the bill can reach Ј1500 in a worst-case scenario. The costs of eradicating the pests can also be inflated due to the fact that the pest control is currently unregulated. As an Esure spokesperson said, “Many people are left to find their own contractor, potentially calling out ‘cowboy’ pest controllers to their homes to then be faced with a hefty bill.”

The best insurance is prevention, and we have put together some tips to help you avoid being targeted by vermin.

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Keep your garden and the area around your house free of spilled rubbish, make sure the rubbish goes in a bin that had a lid.
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Don’t leave spilled birdseed under feeders and bird tables – it could attract mice, rats and squirrels.
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Seal up holes around pipework – mice can get through tiny gaps. The basic rule is, if a pencil fits in the hole, so can a mouse.
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Keep your home clean – don’t leave dirty plates out, clean up spills and vacuum on a regular basis.
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Don’t leave piles of wood, leaves, pipes and other detritus in the garden as it provides a perfect hiding place for mice.
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Try not to keep items like clothes, cuddly toys and tissue paper in the loft – it provides a perfect nest for wasps and hornets.

If you live near a nature reserve or an area that is rich in wildlife, then it may be worth considering getting cover against pest damage. However, if you follow the above advice and also make regular checks then you may catch them in time, before they ruin your roost!

Wouldn’t you love to know how insurance companies come up with your home insurance rates? Maybe you wouldn’t after you understand what all is involved. The whole concept of insurance started as a benevolent community partnership. Life insurance was the pioneer. When a member of the community passed away the friends and neighbors of that community would drop some money in a hat to help the deceased family give their loved one a proper burial. All insurance is based on the combined giving of local communities. The communities are bigger today and the hat has now become the insurance company. Home insurance rates are calculated by fiduciaries. These folks will add up all of the premiums remitted to the insurance company from a community and will compare it with the number of claims paid from that particular community. These geographical areas are called territories by most insurance companies. When the claims are less and the cost to recover a claim is stable then your rates will be lower. When claims are high and the cost to rebuild and recover is high then your rates will be higher. That is the simplified explanation of how home insurance rates are derived. There are investment factors and many other variables that raise and lower rates also.

Why Shop for Better Home Insurance Rates?

1. Comparing is Easy – It’s not difficult to get a homeowner’s insurance rate. Make sure that you have your declarations page so that you get the apples to apples quote.

2. Comparing is Smart – The worst thing that you can discover is that you have good rates with your present company.

3. Comparing is Leverage – If you like your present insurance company and your agent then a comparison quote from another company will make them work that much harder to keep your business.

There is no better buy in the insurance market than the home insurance policy. Shopping online for rates is one of the easiest methods for comparing rates. Take the time. You will learn a lot the first time shopping online.