LONDON, ENGLAND, December 02, 2009
Customers taking out Sainsbury’s Home Insurance qualify for Double Nectar points on their Sainsbury’s shopping for two years

Over the past year in order to save money, one in four people have cancelled or not renewed their home insurance. Sainsbury’s Home Insurance is warning people not to go without home insurance as it could have disastrous consequences leaving them in further financial dire straits. To help pay for their home insurance, Sainsbury’s Finance is urging people to spread the cost of cover over a year, something it does not charge customers for doing. However, its research reveals that 68% of policies do.

Ben Tyte, Sainsbury’s Home Insurance Manager, said:
“In the current economic environment many people are looking to dumb down on their insurance or do away with it completely in order to save money. However, this is a false economy because if disaster strikes they could be left in ruin. Rather than risk inadequate cover, they should shop around for better deals – it is possible to find quality cover at a competitive price – and find a policy that does not penalise them for paying on a monthly basis.”

However, when reviewing policies, Sainsbury’s home insurance warns that it is very important to look closely at the quality of cover being offered. For example, its research reveals that only 8% of home insurance policies offer unlimited buildings cover and only 12% offer a no claims discount of up to 30% or more. Furthermore, less than one in ten (8%) policies provide no claims discount protection. These are all features offered by Sainsbury’s Home Insurance.

Sainsbury’s shoppers are rewarded with double Nectar points on their shopping in store, online and in petrol filling stations for two years when taking out Sainsbury’s Home Insurance. For example, customers who spend GBP50 a week with Sainsbury’s and have Sainsbury’s Home Insurance as well as a Nectar card would receive GBP52 worth of Nectar points a year.

About Sainsbury’s Home Insurance:
As well as being competitively priced, the bank also offers an extensive range of cover and benefits. This includes:

Unlimited buildings cover
Unlike some home insurers, Sainsbury’s Bank does not apply charges for customers paying their premiums by direct debit
Maximum no-claims discount of up to 30%
No-claims discount protection
Cover for accidental damage – even by pets
Sainsbury’s provide a wide range of financial services including credit cards, loans, personal loans, savings account, pet insurance, life insurance, home insurance and car insurance, visit www.sainsburysbank.co.uk now to find out more

For further information, please contact:
Phil Anderson / Ian Morris
Citigate Dewe Rogerson
020 7282 1031/1037

Notes:
(1) Defaqto research commissioned by Sainsbury’s Finance, September 2009
(2) ABI, June 2009
(3) Dependent on the number of years you have remained claimed free
(4) Terms and conditions apply – additional premium required
Sainsbury’s Home Insurance is underwritten by St Andrews Insurance ltd.

Another year gone by and little or nothing has been done by government to address the flooding problems

The following two BBC articles illustrate the extent of the problem:

Environment Secretary Hilary Benn has rejected claims by a committee of MPs that Britain’s flood preparations are in a “chaotic state”.

The Environment, Food and Rural Affairs committee said the UK is still not prepared for the sort of flooding which hit much of the country last summer.

And it warned an extra £800m pledged to improve readiness was not enough.

Mr Benn said the government was already taking action in many of the areas identified in the report.

More than 55,000 homes and businesses across central, northern and South West England were devastated by last year’s floods, which killed nine people and left an insurance bill of about £3bn.

‘Confused and chaotic’

In its report, the select committee said there had been a “total lack of awareness” about how vulnerable many parts of the country were to flooding before the downpours.

“The public will not forgive the government if it is not seen to be responding to the lessons learnt from the floods of last summer,” said Michael Jack, the committee’s chairman.

“Our report has shown how confused and chaotic was the infrastructure when it came to preventing and dealing with surface water flooding.”

The report said flood defence measures have been focused almost solely on river and coastal defences, with plans to cope with heavy rainfall in an “unclear and chaotic state”.

No organisation had responsibility for dealing with surface water at a local or national level, and when drains began to overflow it was hard to see who was responsible for the drainage system, the committee said.

Planning changes

Ministers had repeatedly suggested the £800m a year for flood management by 2010/2011 would allow the government to deal effectively with future crises, the committee said.

But the settlement for flood defences made under the Comprehensive Spending Review was “far less impressive under close analysis”, it added.

Mr Benn said he “welcomed” the committee’s report but said action was already being taken to improve readiness for another major incident.

Changes to the planning laws would make it more difficult for homeowners to “concrete over” their front gardens – which he said was one of the causes of surface water flooding.

“The truth is that if we concrete over, pave over, tarmac over ground in our towns and cities and it rains like that then the drains get overwhelmed and the select committee recognises that,” he told BBC Radio 4′s Today programme.

“And what we need to sort out – what we had already recognised – is clarity of responsibility for making sure that the bits of the surface water drainage system fit together.”

Spending ‘doubled’

The right of new developments to automatically connect to the public sewerage system was also being reviewed, he added.

And the environment agency had been given “overall responsibility” for dealing with flooding and there was now a “single chain of command”.

He denied there was a shortage of funds for flood defences.

“We’ve doubled the spending on flood defence in the last ten years.

“We’re increasing it by about another two hundred million pounds a year by 2010-11.

“Last summer, the Association of British Insurers said we should be spending about £750m a year by 2010-11 – actually we’re going to be spending £800m – and that’s going to mean the environment agency has more money to spend on more flood defence schemes to protect more peoples’ homes.”

Meanwhile, a confidential government study seen by the BBC suggests hundreds of UK power substations and water treatment plants are potentially at risk from flooding.

The report warns that “there are likely to be hundreds of sites at the highest levels of criticality” and says that “the risks posed by natural hazards are already rising and are predicted to rise further”.

It concludes that it would “be imprudent to rest on the basis that events on the lines of those which happened last summer were so infrequent as to reply on a reactive response alone”.

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Most homeowners hit by last summer’s floods remain unprepared for a repeat, an insurance company survey suggests.

Some 83% of residents of Gloucester, Tewkesbury, Hull, Sheffield and Rotherham believe there is nothing they can do to protect their homes.

Of 1,500 people surveyed for Norwich Union, 95% had not secured their properties ahead of the threat of further flooding this summer.

A total of 29% also were unaware that their homes were at risk again.

Yorkshire, Gloucestershire and Worcestershire were worst hit by last year’s floods, which the Association of British Insurers says led to 180,000 claims totalling about £3bn.

Mary Dhonau, chief executive of the National Flood Forum, said: “Having been flooded myself, I know what an awful experience it can be.

“The findings of this report have shocked me because there is so much more people can do than using the humble, not to mention ineffective, sandbag.

“As someone who has witnessed the huge benefits of flood-resilient repairs, I’m a huge advocate of taking measures to protect your home.

“Adapting or altering your home can significantly lessen both the practical and emotional impact of flood.

“Not only can damage to your personal possessions and furnishings be reduced, you could be back in your home quicker after a flood if you have to move out at all.”

Flood defences

Simon Black, head of flood mapping at Norwich Union who produced the survey, said: “We believe that everyone has a responsibility to help reduce the risk of flood damage.

“That includes the government, with continued investment in flood defences, and the homeowner.

“While home insurance will protect people from the majority of costs caused by flooding, no insurance policy can replace those significant personal belongings with sentimental value.

“Similarly, no policy will be able to spare families the inconvenience and stress of being forced from their homes while it is being dried out and repaired.”

Flood protection for houses includes flood boards for door frames in case of flash floods, one-way valves on water outlet pipes and water-resistant sealants around doors, window frames and on bricks and mortar.

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