Odd Insurance Claims

A UFO was alledged to have caused damage to a wind turbine in Lincolnshire recently which begs the question, if a UFO crashed into your house, are you covered by your home insurance? This and many others are included in this list of the oddest freak insurance claims.

Claims for freak household disasters are nothing new but if something like this happens to a householder, too often they fear the response from an insurer. They worry that it will be up to the policyholder to prove that a little green man was responsible. ‘Act of god’! More like ‘Act of Alien’!

What if a meteorite was to strike my house?
How about a stampede of wildebeest on the run from a local safari park?
What if a vindictive ex-husband bulldozes my home to the ground?
How about if a shark fell through my roof?

British motorists made claims last year for everything from a frozen squirrel crashing through a car windshield to a cow jumping on a quad bike, an insurance company said. Freak accidents involving animals topped the list of odd excuses for motor insurance claims with food-related mishaps in second place.

"We see a lot of strange claims but we were surprised at how many involved animals and food, of all things," said Sally Leeman of Norwich Union, one of the country's biggest insurance providers. "We can hardly tell drivers to beware of flying kebabs and frozen squirrels when they're on the roads but this shows how important it is to be aware of what's going on around you at all times."

The top 10 motor insurance claims were:

"A frozen squirrel fell out of a tree and crashed through the windscreen onto the passenger seat."

"The car was parked when a reindeer fell on the bonnet of my car."

"As I was driving round a bend, one of the doors opened and a frozen kebab flew out, hitting and damaging a passing car."

"A herd of cows licked my car and caused damage to the paintwork."

"A zebra collided with my car when I was at a safari park."

"While I was waiting at traffic lights, a wasp went down my trouser leg which made me hit the accelerator and prang the car in front."

"I couldn't brake because a potato was lodged behind the brake."

"My parked car was hit by a bull which had escaped from an agricultural show."

"A cow jumped on my quad bike."

"As I came over the hill, I hit a cow in the middle of the road, which then hit the bonnet and shattered the windscreen with its rear end."

Landlords Should Protect Lettings

The national deposits regulator is urging landlords to get the necessary home insuranceafter research revealed the cost of damage caused by tenants.

According to The Deposit Protection Service (The DPS), landlords can be exposed to the cost of cleaning up after tenants who show little regard for a property.

Figures show 40% of DPS disputes between landlords and tenants occur in the South East of England, making it even more important for these landlords to arrange suitable buildings insurance to cover mishaps from flooding to fire.

Half of disputes in the South East were the result of tenants damaging the property, with 36% due to the property not being cleaned.

Results show cities which are popular with students are also likely to have a number of disputes. Most disputes happened in London, followed by Bristol, Manchester, Newcastle upon Tyne and York.

Kevin Firth, director of The DPS, said: "Exasperated landlords have sent us all sorts of complaints about tenants. One landlord discovered that his property was being used as a brothel."

Source: Landlords Urged To Protect Lettings

What Act of God means in Home Insurance

Home insurance policies sometimes contain clauses which refer to an ‘Act of God’. These tend to limit liability for natural phenomena such as lightning strikes, floods, hurricanes, tornadoes, earthquakes and plagues of frogs – freak occurrences which cannot be prevented.

Insurance providers occasionally include these clauses to protect themselves from the hefty payouts usually associated with such unpredictable events. So, in the event that your property is damaged by what is deemed to be an ‘Act of God’, you may find that your insurance provider refuses to pay out. At which point, you might well take certain names in vain.

To this end, it’s always an idea to check your home insurance policy and see what’s excluded under the ‘Act of God’ clause. Obviously, the very essence of these exemptions is that they are unpredictable, so it can be difficult to judge if they apply to you. For example, you may not think of your property as being particularly lightning-prone, but you never know. However, it is certainly prudent to check for supposedly freak events which are becoming more prevalent, such as floods. If you do live on a floodplain, and yet floods are considered to be an ‘Act of God’ by your insurance provider, then you may later regret being underinsured.

That said, policies today often provide cover for chance occurrences in their standard buildings insurance inclusions. A certain level of flood damage cover may be provided, for example – probably no surprise since flooding seems not uncommon nowadays. Likewise a certain degree of storm damage cover may be provided. To be sure of the extent to which you’re covered, be sure to read the small print in your policy.

What if your house were to be destroyed? It is obviously unlikely, but not unheard of. In such a situation, if you have taken out buildings insurance (which you almost certainly will do if you have a mortgage, as it is likely to be one of your lender’s requirements), then you will be able to recover your rebuild cost. Plus some policies may be able to provide an ‘alternative accommodation’ payment in the undesirable event that your property is rendered uninhabitable for a period of time.

Last, but by no means least, it is an idea to know exactly what constitutes this exemption in the eyes of your insurance provider. Don’t get caught out by vague wording… If the situations which constitute an ‘Act of God’ aren’t specifically defined in your policy, then request clarification from your insurer, so that they cannot hide behind something loosely defined in the event of a claim. Possibly the best advice that can be given – with ‘Act of God’ clauses and as with all insurance – is know your Home Insurance policy!

Source: Confused.com Explain ‘Acts of God’ in Home Insurance

Considerations For a UK Landlord

Energy efficiency

The National Landlords Association has highlighted the benefits of maintaining an efficient home, stating that it can make it more attractive to prospective tenants. Improving a house or flat can also add value to the property, as well as lowering the risk of damp or mould setting in. Tenants who receive lower fuel bills are more likely to stay in a property for longer, reducing the amount of void periods that landlords experience. In winter a property which feels warm, insulated and comfortable with a modern boiler and no signs of damp should be particularly appealing to tenants. Finally, under law, UK landlords are required to provide energy performance certificates to potential tenants.

Rent Protection Insurance

Landlords take a gamble if they do not take out rent protection insurance. Even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments. It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, but taking out insurance can offer extra protection, since there is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent.

The Credit Crunch will make it tough in 2009

Next year will be difficult for some people with buy to let mortgages. The CML expects the number of households in arrears for three months to increase by 500,000 next year. Unemployment levels will also have an impact on the property market. But for those who manage to stay in employment, variable-rate mortgages will become progressively cheaper.

Consider Deposit Protection Schemes

Deposit protection schemes can improve relations between landlords and tenants. Such schemes should have a positive effect on the tenants relationship with you. Landlords must provide proof of any damage to a property in order to withhold deposits. Some landlords abused the old deposits system, but most landlords are reasonable and do not charge for small amounts of damage. People with buy to let mortgages have been advised to take out rental guarantee insurance as a safeguard against the current economic situation. It is also recommended that investors should always carry out credit checks on potential tenants whether there is an economic downturn or not.

Recent figures from the National Landlords Association show that 71 percent of landlords expect rent arrears to rise next year.

Consider your buy-to-let mortgage deal if you need one

Those with buy to let mortgages should begin preparations to find a new deal on their loans as early as possible. Landlords should begin the remortgaging process as soon as they can to avoid paying higher amounts of money later on. Investors who do not have a 25 percent deposit in a property to seek a professional valuation before looking to remortgage.

In November 08, the Council of Mortgage Lenders reported that there were 11.69 million mortgages outstanding in the UK in the third quarter.

It'll take time

Those with buy to let mortgages must put time and investment into their property portfolios over the coming years if they are to make a profit. Landlords must be clever to survive through the economic downturn: you will not make money over the next ten years if you do not put in the investment and time to work out what the best buy to let strategy is. You could save money by cutting out agents and managing properties yourself.

Deposit Protection Schemes

Deposit protection is likely to improve relations between landlords and tenants. Such a system should have a positive impact on tenants' relationship with you. Landlords must provide proof of any damage to property, in order to keep the deposit. Some landlords abused the old system of deposits, but most homeowners are reasonable and do not charge a fee for a small amount of damage. People who have bought mortgage loans have been advised to take the lease as a guarantee of insurance coverage from the current economic situation. It is also recommended that investors should always carry out credit checks on prospective tenants, whether or not the economic downturn.

Recent data from the National Landlords Association show that 71 percent of homeowners expect rent arrears will increase next year.

Gamble with no Insurance

Landlords take a "gamble" if they do not take out rent protection insurance, it has been claimed.

Michael Portman, the managing director of Let Insurance Services, said that even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments.

It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, he noted, but added that taking out insurance can offer extra protection.

"There is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent," he remarked.

This view is shared by the Association of Residential Lettings Agents (Arla).

They note that many landlords face the possibility of tenants being unable to pay their rent, saying that even reliable occupants "may not know what's around the corner" in times of recession.

"There are ways that landlords can manage that risk and the most important way is to insure themselves," Arla remarked.

They also recommended that buy to let investors should always carry out credit checks on potential tenants whether there is an economic downturn or not.

Recent figures from the National Landlords Association show that 71 per cent of landlords expect rent arrears to rise next year.

Energy Efficiency for Landlords

Those with buy to let mortgages have been encouraged to consider the energy efficiency of their properties.

The National Landlords Association has highlighted the benefits of maintaining an efficient home, stating that it can make it more attractive to prospective tenants.

Improving a house or flat can also add value to the property, as well as lowering the risk of damp or mould setting in, the body noted.

And it claimed that tenants who receive lower fuel bills are more likely to stay in a property for longer, reducing the amount of void periods that landlords experience.

"In winter a property which feels warm, insulated and comfortable with a modern boiler and no signs of damp should be particularly appealing to tenants," stated NLA senior policy officer Elizabeth Brogan.

Under law, UK landlords are required to provide energy performance certificates to potential tenants.

The legislation has just been introduced into Scotland.