The earthquake and your home insurance

The Association of British Insurers (ABI) has estimated that the cost to repair damage caused by the earthquake that hit the UK in the early hours of 27 February 2008 is set to be over £10 million.

The ABI has confirmed that most home insurance policies will not only cover the structural damage to your property but also the cost of alternative accommodation (up to policy limit) if you need to move out of your house while it is repaired. Anyone who had been affected by the earthquake should contact their insurer immediately for advice.

Always keep a record of damage that has been caused and keep a copy of all correspondence with your insurer. Photographs are a good way to show insurers the damage that has been caused. If you have to make any temporary repairs keep all your receipts as these will form part of you claim.

Damage to cars and other vehicles should be covered by comprehensive motor insurance policies. Those who only have third party car insurance are unlikely to receive compensation.

The tremor should start alarm bells ringing to ensure that you have adequate home insurance in place. It is unlikely that homeowners would have enough money readily available to pay for the repairs to their home out of their own pockets. This is why home insurance is so important.

Home insurance is designed to provide a financial safeguard should your valuable asset be struck by disaster or if your possessions are damaged or stolen. It is impossible to prevent forces such as an earthquake from striking your home but you can make sure that you have adequate levels of home insurance cover.

What you need to do now:

• Ring your insurer's help line to report all damage.
• Use a camera to film and record any damage - both the property and to your possessions.
• Wait for the insurance company to give their approval before carrying out any repair work.
• Take your time documenting everything that is damaged.
• Do not dispose of any item until you are told by your insurer you are able to.
• Get several quotes from firms recommended by your insurance firm, friends, family.
• Beware of builders touting door-to-door. They may not be appropriately trained or qualified and only keen to exploit your vulnerability.
• NEVER pay cash in advance.
• Get signed receipts for all work done.

Most common earthquake claims