Rise in burglaries sparks insurance warning as inflation soars

A ‘perfect storm’ has seen an increase in burglaries in the South West amid fears of a crime epidemic.

Following the release of figures by the Office for National Statistics (ONS)1 which reveal residential burglaries have risen to 11,641 in the 12-months to June, William McCarter, of insurance broker Lycetts, is urging householders to take stock of their insurance cover.

“The ‘cost of living’ crisis, combined with the increase in value of such items as jewellery due to inflation, risks incentivising thieves,” McCarter said.

“This has been exacerbated by the onset of longer nights when police typically report spikes in burglaries, with the cover of darkness making it easier for thieves to operate.

“In such a climate, people may consider cutting corners on their insurance to make savings. However, this is fraught with risk and can lead to considerable financial loss.

“Undervaluing insured contents as a means of reducing premiums, for instance, is a gamble that can backfire. In the event of theft, owners will not be covered for the true value of the insured asset. Any savings made on reduced insurance premiums will invariably be eclipsed by vastly reduced claims settlements.

“Equally ill-advisable is choosing to let your insurance lapse entirely. In addition to potentially suffering thousands of pounds of losses, such a decision could adversely affect your risk profile. Insurers may deem you financially irresponsible, resulting in higher premiums when starting a new insurance policy at a later date.”

McCarter stressed the importance of reviewing policies on a regular basis during periods of rapid inflation, rather than just at annual renewal.

He also highlighted that it is the policy holder, not the insurer, who is responsible for ensuring sums insured are adequate.

“All too often, attempts to make short-term savings will result in long-term financial loss,” he added.

“Those considering amending their policies should always seek specialist advice before making any decisions.”