£200 million cost of burglary to the uninsured

24/05/2010

Uninsured victims of burglary are facing an annual bill of £200million, according to research from Clydesdale and Yorkshire Banks. The research suggests that thousands of UK households that are burgled every year are not covered by home insurance.

New analysis by Clydesdale and Yorkshire Banks shows that around 1 in 4 households in the UK have no home contents insurance¹, and approximately 1 in 3 have no buildings cover¹. As a result, over 6 million households face footing the cost of a burglary themselves.

The UK insurance industry pays out approximately £3.2bn each year on claims for damage and theft of property, including burglaries, with 1 in 10 households making a claim each year¹. The average claim is roughly £1,260¹.

With approximately 600,000 burglaries reported each year², Clydesdale and Yorkshire Banks estimate that of these burglaries, up to 150,000 of them are not be covered by contents insurance. With an average claim value of just over £1,200, the total cost to these victims could be almost £200million each year.

Clydesdale and Yorkshire Banks, who are currently offering half-price contents insurance when bought with buildings cover, also noted that some household security offers greater protection from burglary. Of the most common security measures, double deadlocks, window locks, outdoor sensor/timer lights and indoor sensor/timer lights were the most effective deterrents².

Window locks were the most successful measure for preventing burglaries marginally ahead of double deadbolts on doors. Households with sensor/timer lights halved the risk of being burgled.

Steve Reid, Retail Director at Clydesdale Bank, said:
“It makes sense to take precautions to prevent burglaries from happening in the first case. But security measures are not fool-proof and you can still fall victim to a determined burglar.

“Adequate home contents insurance can’t stop the crime from happening but it can ease the burden should the worst happen.”