The Olympics, the Euro 2012 football championship and the Queen’s Diamond Jubilee will lead to an increase in home insurance premiums, says a new report.
These high-profile events will see an increase in the number of people holding gatherings in their homes, says insurer Axa.
And the knock-on effect of this, suggests Axa, will be an increase in accidental damage and other losses leading to higher payouts for insurers and ultimately a rise in premiums for their customers.
Axa’s report follows findings from advisory service Deloitte whose survey of top insurers indicated that buildings and contents insurance prices would rise between 5 and 10 per cent in 2012.
Burglars take advantage
As well as damage caused by guests, criminals will take advantage of homes which are empty during these big occasions to commit burglary, Axa said.
Its research found that last year’s August Bank Holiday saw a theft rise by almost a quarter.
Many thieves are turning to social networking services to help them plan crimes.
Axa pointed out that figures showed around a third of people attending events such as the Olympic Games mention the fact on websites such as Facebook or Twitter.
The Olympics could cause further problems, with many homeowners renting out rooms or properties to visitors during the games without ensuring their home insurance is sufficient.
Threats from weather and the economy
Axa said that even if the current winter did not turn out to be as extreme as the past two years, dry conditions since the autumn could lead to drought later in 2012 and an increase in subsidence claims.
Ongoing economic woes were expected to lead to a rise in theft, as well as more householders cutting back on general maintenance.
Axa warned that insurers could be entitled to turn down claims on properties which had not been looked after properly.
This includes leaking pipes that had not been fixed or guttering left blocked.
'Get your house in order'
Christine Matthews, head of household claims at Axa, said: “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.
“Around 20 per cent of homeowners have no contents insurance leaving themselves very vulnerable in the face of a year of very real increased risk.
“But even those who have insurance in place need to make sure they don't try and cut corners or are careless about their security or home maintenance as this could lead to a turned down claim.
“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.”
