Insurers warn on risks of keeping savings at home
Friday, 10 Oct 2008 17:41
Insurers warn customers keeping cash at home to contact insurer
Insurers are warning people thinking of withdrawing their savings from banks and keeping their cash at home to check their insurance policy.
According to reports in the media, firms selling safes have reported a rise in sales as Brits lose faith in their banks and opt to keep their cash at home instead.
But contents insurance policies often only cover small amounts of cash – in the hundreds, not thousands.
Keeping more money at home than is covered by your policy puts it at risk if your home is burgled, or suffers a fire or flood, insurers warn.
"For Norwich Union, the limit is around £150," Aviva spokesperson Erik Nelson said.
Mr Nelson said policies differ as to the amount you can keep at home, so it is best to check the details.
The Association of British Insurers (ABI) advises anyone who wants to keep cash at home to contact their insurer to find out what their policy will cover. Telling your insurer it is kept in a safe may well enable you to extend that limit.
However, there are other potential issues to think about if you want to keep your savings at home.
Without gaining interest to offset inflation, currently running at 4.7 per cent, the value of your cash will be eroded.