More destructive weather, UK playing host to a number of large events, and continued economic pressures will make 2012 another very expensive year for British insurers, according to AXA Insurance.
The company is predicting that in 2012 a mix of continuing economic pressures, ongoing unusual weather conditions and an unprecedented number of events this summer such as the Olympics, Diamond Jubilee and Euro 2012 could add up to soaring numbers of home claims.
Here are the reasons why:
EVENTS
According to AXA’s claims data, when friends and family get together the likelihood of a something getting lost or damaged rises by up to 78%. With a number of large events scheduled for 2012 most Brits are expected to be either hosting or attending more gatherings, so accidents around the home are expected to rise.
On top of this, the Insurance giant expects the amount of burglaries increase, as thieves take advantage of people leaving their homes for the Olympics.
AXA also found that while many Brits are planning on renting their homes or rooms for the games, only 53% were aware that they need specific tenant insurance to cover themselves for this.
WEATHER
We’re just four days into the new year and already insurance companies have been reporting 300% increases in claims from storm damage.
While the storms will pass eventually, more long term weather phenomenons may start prompting insurance claims as well. For instance, the end of 2011 saw some of the warmest and driest weather on record, and if these ‘drought’ conditions continue it could lead to a huge rise in subsidence for homeowners in 2012.
ECONOMY
With added pressures on personal finances, corner cutting and money saving schemes are expected to increase which could result in a rise in claims.
Homeowners may try to cut back on maintenance expenses which often results in increased repair claims. AXA warned, however, that this is a false economy because if something is damaged as a result of lack of repair claims are usually declined.
Research also shows that the number of household thefts rises in times of economic pressure. The company said they are already seeing evidence of this, with theft numbers on the rise over the past three years.
Christine Matthews, head of household claims at AXA says: “Homeowners need to make sure more than ever that they get their house in order this year. This includes making sure they take precautions against theft but also that their homes are properly maintained.
“We sincerely hope that our predictions turn out to be wrong but we would urge people everywhere across the UK to think about what they can do to avoid the stress and potential financial loss of a burglary or accident around the home.”
