The Week Unzipped: Insurers mobilise extra staff to cope with calls from flood victims

Published on Saturday 21 November 2009 14:16

INSURANCE companies drafted in extra staff to cope with thousands of calls following the recent flooding and sent out an army of advisers to offer flood-hit areas help.

Meanwhile, the Association of British Insurers is advising flood victims to contact their insurer as soon as possible. Most offer 24-hour emergency helpline services.

Householders may need to carry out temporary repairs to prevent further damage, but this should be cleared with the helpline and receipts kept.

Most policies cover the cost of alternative accommodation, but often up to a limit. Again it is best to get approval from the insurer to avoid problems later, where possible.

Electricity and water supplies should not be used until a property is given the all-clear. Once the floodwater recedes, floors and furnishings should be disinfected, and the property aired and heated.

It may take weeks to dry out, so there should be no rush to redecorate.

Property blow

BRITAIN'S biggest building society reported a profit collapse and predicted more gloom for the economy and housing market next year.

Nationwide reported pre-tax profits for the six months to the end of September down 62 per cent to 143 million.

The society, which rescued the troubled Dunfermline, predicted the recovery would be slow, while rising unemployment would put continued downward pressure on house prices.

"Looking ahead, we expect the remainder of this year and next to present a very difficult trading environment," Nationwide's chief executive Graham Beale said.

He added that interest rates would probably remain at their record low of 0.5 per cent until "at least the fourth quarter of 2010".

It said the squeeze on lending meant that, in the past six months, only those able to give a significant deposit were able to secure home loans. The average loan-to-value rate for new residential mortgages was 63 per cent, little changed from the 60 per cent of the previous six months.

Dunfermline Building Society has reduced its fixed rate and tracker mortgage prices by up to 0.8 per cent, ahead of the withdrawal of the stamp duty concession.

Two-year tracker mortgages are down from 3.59 per cent to 2.79 per cent, and two-year fixed rates from 4.29 per cent to 3.79 per cent. However, the rate paid will be affected by credit history.

According to the Council of Mortgage Lenders, gross mortgage lending was up 5 per cent in October, in line with the seasonal trend. Activity in this month has risen by 5 per cent in the past decade.

However, lending is still down 27 per cent compared with this time last year.

Elsewhere, the number of empty properties in Scotland has reached a four-year high, according to the Bank of Scotland vacant property report.

More than 4 per cent of all homes are vacant. The Western Isles has the biggest proportion of empty homes in Scotland, 13.2 per cent, followed by Argyll and Bute and the Orkney Islands.

These three areas have a significantly higher proportion of second homes than elsewhere in the country.

North Lanarkshire has the fewest vacant properties, with just 1.6 per cent lying empty.

Credit withdrawal

ONE in four Scots has had their credit-card account closed by the provider because they have failed to keep up with repayments, according to research from Confused.com.

Scottish credit-card users are above the national average when it comes to accounts closed due to non-payment.

A history of non-payments could damage a consumer's ability to borrow money in the future from credit providers, including mortgage lenders.

Confused.com advises consumer struggling to make repayments on time to set up a direct debit for at least the minimum payment with their bank.

The comparison website also stresses the importance of finding the right credit card to fit personal needs.

Broadband deal

TESCO has unveiled plans to offer bundled packages of broadband and home phone services in partnership with Cable & Wireless.

The expansion into the combined broadband and home phone market will pitch Tesco into direct competition with BT, Carphone Warehouse and Sir Richard Branson's Virgin Media. Tesco currently sells a standalone broadband product through Virgin Media.

Consumer experts are anticipating a broadband price war as the established brands try to hold on to their subscriber base.