Over 50s at risk from holiday home underinsuranceWednesday 12 May 2010
Over 50s at risk from holiday home underinsurance
- One in ten over 50s holiday home owners have no insurance
One in ten holiday home owners (211,000*) have no insurance for their properties abroad, putting them at huge financial risk. The study from Saga Holiday Home Insurance also shows that over 160,000 over 50s who have insured their European properties in pounds Sterling could be caught out due to the weak pound.
The last three years have seen changes to the Euro– a fall of a quarter from a high of 1.51% in January 2007**- which in turn affects those with properties in Europe that are insured in Sterling. For example, possessions valued at £10,000 in 2007 would have given policyholders 15,069 euros. In 2010, this would only provide 11,050 euros; combined with the fact that the cost to replace such items is also likely to have increased in the period means that holiday home owners could be left out of pocket.
The study also shows that whilst 71% of over 50s have reviewed their policies in the last year, 19% have not checked for up to three years and one in twenty (6%) have never checked their valuations.
Andrew Goodsell, Executive Chairman, Saga Group Ltd, commented: “Holiday homes are often left vacant for periods of time making them especially vulnerable. It is therefore important that people regularly check their level of insurance to ensure that they are protected for the full value of their property and possessions.”
With Easter fast approaching, many of the two million over 50s who own properties overseas will be thinking about escaping to sunnier climes. However, the average owner only spends one month a year in their properties***, meaning for much of the year the properties can lay vacant and vulnerable to burglary and vandalism.
Saga’s Holiday Home Insurance has no un-occupancy limit, meaning policyholders will be covered if an incident happens whenever the property is vacant. Saga also offers up to £25,000 for protection from loss of rent, a key concern for owners who rent out their properties as a source of income, and up to £2m cover for legal liability as owner of the home.
For more information or a quotation please call 0800 015 0751
Saga/Populus poll among 15,393 adults aged over 50 between the 12th and 19th February 2010.
There are 21,586,000 over 50s in the UK.
9% own a holiday home = 1,942,740 over 50s. 10% of holiday home owners have no insurance = 194,274 over 50s
8% of holiday home owners have properties in the Euro zone, with policies in pound Sterling = 8% x 1,942,740 = 160,000
160,000 + 194,274 = 354,274 over 50s potentially as risk from underinsurance
*Mintel, October 2007
** According to http://www.x-rates.com/d/EUR/GBP/hist2007.html Jan 2007 - 1.50687
http://www.x-rates.com/d/EUR/GBP/hist2010.html March 2010 - 1.10497
*** Source: A Place in the Sun, March 2009
Other features include £1,000 worth of garden cover, trace and access cover up to £2,000 and £500 for sports cover, £750 for replacement locks and £1,500 cover for contents in the open. The policy also includes cover for temporary alternative accommodation if you suffer loss or damage to your home making it uninhabitable and £500 cover for travel and accommodation should an emergency arise at the property.
For more information please contact the Saga Press Office on 01303 771529
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