“More than 200,000 homeowners who live in flood-risk areas face the threat of repossession because of a stand-off between the Government and insurers.”  The reason being that an agreement currently protecting homes built in these area will not be renewed in 2013.

Under the current agreement, insurance provide cover for the thousands of homes built in high-risk flood areas as long as DEFRA (The Department of Environment, Food and Rural Affairs) keeps up its investment in flood defences.  However, according to the Association of British Insurers (ABI), DEFRA do not plan to renew this agreement when it runs out next year.  This, of course, will render these properties uninsurable, other than by taking out hugely expensive policies with payments or excess levels set ridiculously, and probably unaffordably, high.

If buildings are uninsured, the mortgagee is technically in breach of the loan agreement, rendering him or her liable to repossession.  ABI are calling for government agreement to pay the insurance for those properties deemed most at risk but, thus far, there has been no commitment from DEFRA.

Not only will this cause enormous hardship for those affected home owners, but the likelihood is that flood plain areas will become like the ghost towns seen in some northern towns and cities, with shops and properties lying vacant because they become uninsurable or unsaleable.

Already some major insurers refuse to provide cover for previously flooded homes – Direct Line, for instance, will not provide insurance cover on a home that has been flooded within the past ten years.

Oh dear, if it’s not one thing, it’s another…

Comparison sites abound nowadays – along with the, mostly irritating, TV ads selling their wares! We’ve recently come across a site that doesn’t bombard our senses with bouncing, moustachioed, opera singers or infuriating jingles.

Car hire excess insurance can seem confusing, but it doesn’t need to be. On this car hire excess insurance review
site you’ll find simple, clear explanations of what excess insurance is and how it works, as well as a detailed look at the small print you should understand for your chosen policy, in plain English.  This very useful site reviews various car hire excess insurances available on the market, so you can see which one is best for you. And all without confusing legal jargon.

WHAT IS EXCESS INSURANCE?

As with most insurance policies, car hire insurance policies carry something called excess.  Excess is the term used to describe that first bit of the bill that must be paid out of your own pocket.  So, for instance, if your policy quotes ‘£100 excess’, you will pay the first £100 of any claim; the insurance company will then pay the balance of the bill.  These excess charges apply even if the damage to the vehicle wasn’t your fault.

With car hire insurance policies, excess amounts vary wildly – in fact, we found variances between different policies of up to £2,000.  This just goes to show that paying excess charges can prove very costly indeed.

Car hire excess insurance does what it says on the tin – for not much money you can eliminate those excess charges, reducing your risk to zero. Or, in other words, if your hired car is stolen or damaged you will be reimbursed in full for any associated charges.

Car hire companies will offer to reduce your risk – i.e. waive the excess fee – but this doesn’t come cheap.  One well known company charges £15 or more per day for this service. Arranging your own excess cover will be far cheaper than this and, in most cases, will also provide wider cover for your money.

If you want to save money on your car hire excess insurance you need to shop around – and we’ve found the site to help you do just that.

PPI has had a bad press recently, due to a number of companies misselling expensive cover alongside their products, but in the current economic climate it really pays to have some form of insurance in place, should you be unable to pay your debts due to sickness, accident, or redundancy. Otherwise, you will have to maintain payments whilst your income is compromised and may well find that you cannot do so.

• PPI provides peace of mind, should you lose your job or be unable to work
• Payments (or a certain percentage of them) are covered for a specified period of time (usually 12 or 24 months)
• It is optional – there is usually no obligation to take out PPI with the majority of loans and you should not be pressurised into buying it
• There are limitations and exclusions in every policy – check these out before you sign up – the most significant ones are normally listed on the policy summary. Most policies specify that you should have been in permanent employment with the same company for at least 12 months, and will not provide cover for those with pre-existing medical conditions.
• Policies offered alongside a lending product, such as a loan, are often very expensive. It is usually cheaper to buy your PPI online or through an insurance broker. Shop around to find the best deal for your individual circumstances
• The policy only pays out for 1 or 2 years, meaning you still have to cover payments after this time, whether you are back in work or not.
• Cover is not always provided for the self-employed
• Stress is usually not covered under the sickness part of a policy
• Should you take out PPI and then discover it is not suitable for your needs, you legally have 30 days to cancel the policy and get a full refund of premiums paid

PPI is paid in two ways: in one lump sum (single premium) or by monthly premiums. If you pay in a lump sum, it may be better to try and pay upfront – if this is added onto a loan, interest will become due on it and the total amount to pay will increase considerably.

Shane Craig, M.D. of Paymentcare.co.uk, comments;

“Following a 2 year inquiry into PPI by the Competition Commission, the single premium is to be banned; this is something that Paymentcare.co.uk has long campaigned for. The FSA (Financial Services Authority) recently wrote to everyone currently selling single premium PPI, stating that they should stop selling it as soon as possible and by the 29th May 2009 at the latest.

Furthermore, lenders will no longer be able to sell PPI at the same time as they sell a loan and there has to be a seven day period before the lender can conclude a PPI sale to the customer, unless the customer specifically asks for it (which they will be able to do after a 24 hour “cooling off” period): these changes are proposed to come into effect around October 2010.

This is great news for people who want the peace of mind that PPI can offer, especially in these uncertain times. The golden rule is to shop around and do check policy terms and conditions; don’t just buy on price alone! That said, most policies from stand alone providers like Paymentcare.co.uk will cost significantly less than lenders PPI.

Before taking out PPI, it is a good idea to check whether any other insurance policies you may have will affect the level of cover offered or cancel any aspects of the cover out

The table below shows the cover provided by a typcial PPI policy for the various loans:

If life cover is incorporated into the PPI, then the balance of the above debts should be paid off in full if you die.

When shopping around for a PPI policy, make sure you know exactly how much it is going to cost, whether you are buying it alongside a loan or separately. If you are unsure about anything, such as the terms and conditions of a policy, do not be afraid to ask questions – after all, it is important that any policy you take out fully meets your needs.

Finally, if you believe you have been missold a PPI policy that you neither wanted or needed, you may be able to claim back money paid out on premiums. Firstly, raise the issue with the company who supplied the insurance -if you get nowhere with them, put in a complaint to the Financial Ombudsman Service.