Tuesday, 1st November, 2011

Research by MoneySupermarket.com has discovered that whilst the country is experiencing an overall decrease in home insurance premiums by 0.36% with the average premium now standing at £152.44 many areas are experiencing both significant increases as well as decreases.

Homeowners in Jersey, South and East London and Norwich were the lucky ones who experienced the biggest reduction in premium costs, according to data produce in the MoneySupermarket Monitor on Home Insurance complied from research into nearly 3 million home insurance quotes made between June 2010 and May 2011.

Whilst policy holders in Jersey saw an average of 13% reduction, east and south London both saw a reduction of 7% and Norwich enjoyed a reduction of 6%. Why is it that some areas are experiencing a decrease to their home insurance when others are suffering an increase?

Julie Fisher, head of Home Insurance at MoneySupermarket.com explains: "Our research shows some areas have seen more of a decrease in the cost of their premiums than others. Unfortunately, postcodes can dramatically affect how much people pay for their home insurance premium. For example in Jersey, one fifth of the population is retired, and low crime rates coupled with mild weather conditions means that the cost and frequency of claims are likely to be lower than other areas of the country. East London is undergoing significant regeneration and infrastructure improvements and insurers may be adjusting premiums as a result."

While residents of Jersey are enjoying a decrease in their premiums, neighbouring Channel Island Guernsey is experiencing the biggest increase at 32%. Likewise Orkney and the Shetland Islands have seen an increase of 21% and 20% respectively. Julie Fisher explains the likely cause of such large increases "In the case of Guernsey, Orkney and The Shetland Islands, home insurance cover in Summer 2010 was lower than the national average premium price. It is likely that insurers have brought these prices in line with the rest of the country, rather than responding to any specific 'occurrences' on these islands, although climate may play a part."

Other areas that were subject to an increase in their home insurance premiums included Llandrindod Wells at 13%, Stevenage at 10%, and St Albans at 9%. Other explanations for an increase in home insurance premiums include, property being in a 'high-risk' area, for factors including crime, flooding or even fraudulent claims. Living in a more affluent area will also tend to increase home insurance premiums as contents values will then usually be higher.

While there isn't much you can do to change how your postcode affects your home insurance premiums there are some steps you can take to help reduce them as much as possible. Simple things like installing a good home security system, joining the local neighbourhood watch and investing in security lighting can reduce premiums, understanding your policy and ensuring you only have the level of cover you require will also help, add on's that you don't always need can increase your premiums by up to 25%.

Tuesday, 6th September, 2011

We all tell ourselves that we're going to do it; Get in the gym, cut down on the snacks we know we shouldn't have, quit the ciggies and lose those few pounds that've been creeping up on us.

Of course, for most of us that isn't exactly what happens, but trimming a few excess inches and getting on a health kick can really make a difference to your finances, ridiculous as it sounds.

If you're a smoker, quitting could well be the best thing you ever do. I'm sure I don't even need to begin to list the health benefits involved in cutting out the ciggies, but there are also a few enormous financial benefits as well.

Number one: Quitting smoking means you're not spending money on cigarettes any more. That means that if you currently smoke ten a day, cutting them out completely will save you over a thousand pounds a year - not a bad saving considering you're actually making your life better!

Further to that, quitting smoking will also make any life insurance you may have cheaper, and quite remarkably so too: According to Money Supermarket.com a combined life and CIC policy could become over £6000 cheaper on average, whilst a single life policy could become around £1500 cheaper.

These are serious savings - although I'm sure you can work out that between three and seven thousand pounds extra in your pocket every year isn't exactly anything to be sniffed at.

Keeping on the life insurance tack, decreasing your BMI can also have a positive benefit on your premium cost as well - a BMI of over 30 can increase the cost of life cover by around 50%, so it might well be worth finding out exactly what yours is, and whether losing a few pounds could make your life a whole load easier - both financially but also physically!

Of course, not only do fatty foods and snacks take a toll on your waistline, they can also make life difficult for your wallet as well: Put the cakes and biscuits back and you'll be saving pounds (in both senses) before you even know it!

That said, there are a few outlays you may have to make in order to lose weight. Joining the gym or a slimming club both cost money, and if you were to take up both, you can probably expect to have to spend £60-70 in signup fees, then £40-50 a month for the pleasure of being weighed and run ragged.

You may also find that if you lose a large amount of weight, you may also have to replace items of clothing as things become too big. Although for many replacing the items is a pleasurable experience, it does cost - you may do well to pick up cheap essentials whilst you are losing, as the likelihood is once you have finished, those clothes won't fit you either !

They say you have to spend money to make money, and that is true in that sense as well: Although you will have to fork out the cash in the first place, six months of solid hard work can make a real change to your entire life - not a bad payoff, I think you'll agree !

Thursday, 21st July, 2011

Business insurance is vital for firms of every size - from the newly established sole trader to the biggest multinational.

But the range of covers and policy types on offer can be confusing and, as a result, some business owners find themselves either uninsured or underinsured.

There are three main types of insurance that your business might require.

Public liability insurance

Public liability insurance covers you against injury or damage caused to a client, a member of the public, or their property, when your business is found to be at fault. Claims of this sort can arise from the simplest of errors, and often include not just compensation, but also legal fees and medical bills. Public liability insurance can protect you against this financial risk.

Professional indemnity insurance

Professional indemnity insurance is designed for businesses that sell their knowledge or advice. It covers you against financial losses sustained by a client as a result of a mistake you make. For example, if you are an IT contractor and you advise a client to set up a system that doesn't meet their needs, you might well be held liable for the cost. Professional indemnity insurance should cover you against this.

Employers' liability insurance

Finally, employers' liability insurance covers you against the cost of claims arising from illness or injury suffered by an employee in the course of their work. This type of claim is often hugely expensive, particularly if the employee requires ongoing medical care.

Why do I need insurance ?

There are several very good reasons why you should take out a business insurance policy. A properly tailored policy is an investment in your business's financial stability. It will help to ensure that you have the protection you need in the event of a mistake, an accident, or an unforeseen event. Even a single claim can be financially crippling - and a good insurance policy can therefore help to guard against the possibility of your firm being landed with a bill that it simply cannot pay.

Business insurance is vital for your own peace of mind - but also, perhaps more importantly, for that of your clients. Depending on the industry in which you operate, many prospective clients will ask to see evidence that your business is suitably insured before they will enter into a contract with you. This is particularly common in the public sector, where organisations will often require contractors to have public liability cover of at least £10 million.

Finally, you may have a legal or regulatory responsibility to take out certain covers. If you are an employer you must have employers' liability insurance. You must also keep details of your cover, as illnesses that give rise to claims can often manifest many years after the employee has finished work. Additionally, some professions demand that their practitioners take out professional indemnity cover. If you are an accountant, a financial advisor, or a solicitor, for example, you may be required to take out insurance before you will be allowed to practice.

A business insurance policy needn't break the bank either; by using a price comparison website such as MoneySupermarket.com you can save time and money when searching for the right policy for your need.

Remember, business insurance is one of the key ways in which you can protect your business. It should be a top priority for firms of every size, and in every industry.

Wednesday, 22nd June, 2011

In these uncertain times, with the cost of living continuing to rise, it makes sense to use any deals that can help offset the increased costs of everyday items. For many, the first step is to tighten the purse strings and cut back on spending.

It is not possible to totally eradicate spending, so it makes sense to maximise the value of all purchases. By using a cashback or reward credit card, it is actually possible to make money when you use your credit card for everyday purchases.

Many credit card providers offer cashback or reward schemes that allow you to earn each time that you spend on the card. Providers offer a number of different variations on the market, targeting people with different spending habits.

Such schemes are suited for those who are able to pay off their balance in full each month, as the interest payable can otherwise be much higher than cashback earned.

Cashback and reward schemes operate in a number of different ways. It is important to think about the type of purchases that you make on a regular basis to ensure that you pick the most opt for the most appropriate scheme.

Some schemes offer a percentage cashback on all purchases whilst others offer a percentage cashback on particular types of goods, for example, petrol or supermarket shopping.

Reward schemes tend to offer vouchers, generally for high street stores or flights or holidays. Opting for vouchers can be a good way of saving up for specific items or saving towards big events, such as Christmas.

Some providers additionally offer discounts when buying goods from other parties. These include holiday firms, wine clubs and special retail deals.

When you will be paid out depends upon the scheme. This could be yearly, every six months or monthly, depending on the terms and conditions of the individual card provider.

To benefit as much as possible from a cashback or reward credit card, it is important to put all spending through your credit card. It is equally important to pay this off in full at the end of the month, as otherwise, the rewards earned will be outstripped by the interest payable.

Of course, when putting all spending through your credit card, it is equally important not to actually increase your spending. After all, the whole purpose is to offset your cost of living rather than add to it.

You should also be careful about making any cash withdrawals on a credit card, or making foreign purchases. These can attract a high level of interest as well as a fee.

An extra bonus when spending on your credit card is that, when it comes to purchases over £100, you have more consumer protection than when you spend on your debit card, as Section 75 of the Consumer Credit Act applies to such purchases. If something goes wrong with your purchase you may be able to claim against your credit card provider, rather than against the retailer. The Act does not apply to debit cards.

For those able to pay off their balance in full each month, cashback and reward credit cards can be an excellent way to make their hard earned wages stretch a little further. They offer an innovative way to offset the increasing cost of living or simply to provide a little extra to treat yourself.

Article provided by moneysupermarket.com, the UK's number one comparison website. Here is a comparison of the best credit card deals currently available.

Tuesday, 3rd May, 2011

Price comparison site moneysupermarket.com have analysed 3.4 million home insurance quotations from February 2010 to May 2011 to see which areas of the UK have suffered the largest increase in their home insurance premiums.

Homeowners in Dorking, Surrey were hit the hardest with a massive 46 per cent rise in their premiums. Locals in Dorking can now expect to pay on average £174 a year compared to 14 months ago when it was just £119, a rise of 15 pence per day.

Julie Owens head of the Moneysupermarket home insurance team said "The cost of insuring homes in the UK is steadily on the increase. Unfortunately for consumers, things look set to get worse with the increase in prices unlikely to slow down in the coming years. As our research shows, some areas have been harder hit by rising premiums than others; unfortunately, postcodes can dramatically affect how much people pay for their home insurance premium."

Scots to lose out
Whilst Surrey was the highest hit area, Scotland had three separate areas which have all experiences eye-watering price increases.

Edinburgh city centre has experienced a 45 per cent rise in its home insurance premiums whilst its neighbour, Glasgow has seen a 40 per cent rise. Locals in Dunblane also look set to pay out more with a 31 per cent increase.

Insurers usually use a person's postcode amongst other factors to work out the annual premium. For example if your property is classed as residing in a 'high-risk' area, whether that be for crime, flooding or even fraudulent claims the this will be reflected in your home insurance premiums.

It is not just the 'rough' or crime ridden areas that will see people paying out more. Affluent areas where property prices are high will usually end up paying out more, not just for the high property value but also for the high value in contents that are usually associated with the well-off.

Friday, 15th April, 2011

On the 1st October 2010, legislation was quietly introduced in England concerning the maximum rent level for a tenancy to be considered an 'assured shorthold tenancy', an important legal categorisation. Previously in both England and Wales, where the rent exceeded £25,000 per annum, the tenancy was not considered legally an 'assured shorthold tenancy', and so landlords did not need to use any of the three regulated deposit protection schemes set up by the previous government as part of the Housing Act 2004. Many tenancies, mainly in London and the South East, fall into this high rent category.

Whilst the limit is still in place for Wales, as of the 1st October 2010 the maximum rent level for an assured tenancy in England has now been raised to £100,000. This means that all tenancies where the rent is between £25,000 and up to £100,000 per year automatically become assured shorthold tenancies, and any deposit taken must be registered with one of the deposit protection schemes. This seems to be so even if the rental began before 2010, so quite a few landlords have fallen within the reach of the law, many without knowing it !

Remember it is the legal responsibility for a landlord to register a tenant's deposit with one of the deposit protection schemes. Failure to do so can lead to the landlord being taken to court and could be liable to pay back the deposit plus a penalty of three times the deposit amount. And the landlord cannot take control of the property from the tenant once the tenancy has ended, or if the tenant is in arrears, without the proper deposit protection being in place.

Tenant/Landlord disputes have been widely documented throughout the years. When it comes to damage in the property it is always worth insuring both the property and its contents. Comparison sites such as gocompare.com and Moneysupermarket.com allow you to shop around for the best deal whether you're looking for landlord insurance or tenants insurance.

How Transpact can play a part
Short-term rentals such as holiday rentals do not fall under this legislation, and it is essential in those cases for the deposit payer to protect their deposit with an FSA Authorised company such as Transpact.com. If they do not, it is proven that they are unlikely to get 100% of their deposit back.