Mischievous cats and monkeys make up 2018's oddest claims

In this month's edition, we start with the news that a third of all private renters have been found to have no Home Insurance policy in place at all.

We also explain the nuts and bolts of Business Interruption Insurance, we react to the news that the foreign office has declared a severe travel warning for Sri Lanka and finally, we reveal a short list of last year's oddest and most interesting insurance claims.

Third of all private renters found to have no Home Insurance

A new report by the AA has highlighted some rather startling statistics in the difference in insurance usage between housing association and private renters.

Specifically, the former are reportedly far more likely to have home insurance than the latter, with a third of all private renters noted not to have a home insurance policy in place.

The data digs deeper still to highlight that private renters are more likely to not have contents insurance on their properties; 54% are said to have it in place, as opposed to 64% of housing association tenants.

The explanation behind this is that private renters are less likely to get recommendations for some sort of cover from their landlords.

Nationally, 9% of homes across the country are said to not have any sort of home insurance policy in place. That figure increases to 29% when low-income households are brought into the equation.

“It is worrying that 2.4 million households risk losing it all as they have no home insurance,” noted the AA’s Insurance services managing director, Janet Connor.

“The widely reported high cost of private rent may be a reason why renters are not buying any form of cover. With three in 10 low-income households saying they do not have insurance, it is possible they see insurance as a ‘nice to have but cannot afford’ purchase.

“For less than £1 a week, renters can give themselves and their possessions protection and peace of mind regardless of how they got damaged, lost or stolen.

“Rather than have nowhere to turn, we want every household to have some form of insurance cover, as anything can happen.”

Foreign office issues severe travel warning after Sri Lanka attacks

The British Foreign Office has issued a warning to any Britons attempting to travel to Sri Lanka in the wake of Easter Sunday’s terrorist attacks, advising anyone wishing to visit the country only do so if their trip is ‘essential’.

The series of blasts that targeted several hotels and churches on April 21st claimed 250 lives, including eight British nationals and injured more than 500 others. The Foreign Office often issues such warnings if there is a security threat to Britons travelling to certain countries, with the current warning leaving holidaymakers or visitors needing to clarify their insurance policy criteria in the event of cancellation or if they should choose to travel.

"Following the horrific attacks on Easter Sunday, and the ongoing Sir Lankan security operation, I have received updated advice from the Foreign Office and decided to update the travel advice to British nationals to Sri Lanka to advise against all but essential travel,” offered Foreign Secretary Jeremy Hunt.

"Our hope is that it will be possible to change this when the current security operation has concluded. My first priority will always be the security of British citizens living and travelling abroad.
"We all hope the situation will return to normal very soon, and that the Sri Lankan tourism industry is able to get back on its feet following the terrorist attacks.”

Anyone with plans of travelling to Sri Lanka in 2019 is strongly advised to contact their holidaymaker to discuss cancellation or compensation policies in the event that their trip is postponed, alongside discussing insurance cover with their broker. Given the severe travel advice warning, we suggest checking all policy details to confirm procedures in this instance.

Mischievous cats and monkeys make up 2018's oddest claims

The insurance industry isn’t widely renowned for its levity, so any opportunity to delve into the oddities and quirks of the claims that brokers and companies face is always worthwhile. Recently, Aviva decided to highlight some of the more unusual claims that came their way in 2018 and they offered up some interesting little stories in the process.

Plenty were weather-related, with the Beast from the East accounting for over 3,0000 motor claims as the weather event caused major damage across the country and 7,000 home insurance claims were made due to floods, freezing and other storms. Last summer’s pronounced heatwave also had an effect, with an increase in road traffic accidents put down to sun glare and increased drivers on roads. All pretty standard so far, but several far more unique examples deserve a mention:

Monkey Business
Simians certainly made their mark last year! A holidaymaker needed medical assistance after being bitten by a gorilla whilst taking part in a wildlife trek, whilst another centred on a monkey that stole a customer’s bag during a holiday before proceeding to smash their mobile phone to bits. The motivation for the latter tale has remained unclear.

Horsing Around
An overly amorous horse mistook a customer’s car as a female horse and proceeded to make unwarranted advances on the vehicle, damaging the car’s hood. The damage was repaired on the car, but no word on any repair to the horse’s presumably wounded pride.

Burglary 101: don’t get yourself locked in
A luckless burglar attempted a break-in at a customer’s home, only to alert the homeowner and seek solace in their shed. Unfortunately for them, they managed to lock themselves into the shed in the process before being apprehended by the Police. The insurer paid for damage to the house’s windows and shed.

Feline Carjacker
It’s the perfect crime; sneak into an unsuspecting driver’s vehicle whilst they’re unloading their shopping and then waltz off with their car. Unfortunately, the cat who snuck into a claimant’s vehicle didn’t bank on being unable to escape and made substantial interior damage in their efforts to break out. The driver was altered to their plight after the cat accidentally switched the car’s hazard lights on in the process of trying to find an exit, and escaped into the night unscathed.

We’re not totally sure what lessons can be culled from these cautionary tales, but our advice would be to be wary of mischievous monkeys looking to dismantle your phone and cats trying to sneak into your car in future!

What is Business Interruption Insurance and could it help me?

There’s a misconception in business that contents and building policies will offer sufficient protection for your company should your base of operations fall victim to a small accident that stops operations for a time. Whilst having this sort of insurance cover is a vital part of safeguarding your business and will help you recover from incidents such as fire or flooding, they don’t take into account potential loss of income as a result of interruptions to your daily work. Worse still, the financial hit could be severe enough to lead to your business having to shut down entirely.

This is where Business Interruption Insurance comes in
Interruptions to your business’ operations can come in many shapes and sizes, with the most typical being as a result of a flood from a burst pipe or fire damage. Contents insurance can help to replace damaged equipment and buildings insurance will help to repair any damage to your office or warehouse, but neither offers protection from loss of income as a result of not being able to operate as a company. Business Interruption Insurance will offer the financial cover you require to potentially keep your business afloat during periods in which you’re unable to trade.

How does it work?
Typically, a business interruption policy comes into place after claims have been made against your contents or building insurance and helps to offset financial losses that you might experience whilst you aren’t operating. This could be anything from a loss of income from renting, the cost of additional staff or simply loss of revenue that you would be receiving were it not for an interruption.

Who is it for?
There are plenty of things to consider when it comes to deciding if Business Interruption service is suitable for you. The first thing to consider is how well your company could cope in a situation if you were unable to trade for a period of several weeks; are you well equipped financially to cover such losses and could you return to operations swiftly without too much concern? Should your stock be damaged in an accident, how quickly could you bounce back?

Take factors such as employee wages, repair costs and your total monthly outlay into your consideration, alongside issues such as your clients. Would you lose business due to your current clients needing to look elsewhere whilst you’re unable to operate? If the answer is yes, then Business Interruption could provide you with a vital peace of mind should you experience an accident or problem that forced you to cease functioning for a period of time.