Consider and prepare for the unexpected and avoid a fire insurance claim
Businesses and homeowners battling through the recession are being hit by an increasing fire threat according to the most recent figures released. The likelihood of a fire insurance claim has increased in homes and businesses across the UK and the cost of fire damage in 2008 rose by 16% on 2007 to a record £1.3 billion – £3.4 million every day*.
The figures show that in 2008:
• Commercial fire damage cost £865 million, up 15% on the previous year. School fires alone cost £33 million, with a serious school fire occurring every month on average.
• Fire damage to homes cost £408 million, up 17% on the previous year.
Nick Starling, the ABI’s Director of General Insurance and Health, said:
“These are alarming figures. They highlight both the importance of fire insurance, and reducing and managing the fire risk. We know that arson tends to increase during an economic downturn. Insurers are reporting a rise in large-scale fires that are increasingly putting lives at risk. We believe that arson and fraud are contributing factors. We are investigating this worrying trend, and will be publishing our recommendations for tackling the problem later this year.”
Tony Smith, the founding director of Spettro, is alarmed by the increase in insurance claims coming from property fires:
“These figures really highlight both the importance of fire insurance, and reducing and managing the fire risk. Research shows that arson tends to increase during an economic downturn. If it is a fire started on purpose to recover from financial difficulties it is important to remember that claims assessors use increasingly speciliased equipment that can invalidate a claim by proving arson but also that starting fires endangers lives. If a fire is started by someone intending malicious damage or to cover a burglary, it is important to be fully covered to recuperate losses.”
Spettro deals with claims for flood, fire, storm, impact damage and burglaries. They also are involved in rental property refurbishments and detecting the origin of water leaks. Spettro Limited is regulated by the Financial Services Authority which allows them to loss assess and mediate with all the major insurance companies, a service which is free of charge to the insured. You can call Spettro free on 0800 389 2251 or view our testimonials at www.spettro.net
The great news is that insurers and loss adjusters will be able to respond more quickly to a major emergency as the result of a new agreement between the insurance industry, police, fire and rescue services, and local authorities. A planned and speedy response is vital in the aftermath of a major incident. This agreement reflects the vital role insurers play in the recovery process, especially when it comes to a fire insurance claim. Public safety and preserving evidence is the priority, but the sooner insurers can safely assess the damage the sooner they can help their policyholders.
* These are the findings from a national survey of over 2,000 adults conducted by YouGov, on behalf of the Association of British Insurers.