UK Money News

Money News

25th June 2008

Summer home insurance warning

Higher prices for food could mean that homeowners are underinsured in the event of a loss of power for fridges, an insurer has warned.

NFU Mutual has highlighted the likelihood of power cuts during the summer months as a result of thunder storms.

The loss of power frequently causes the entire contents of a fridge to be thrown out, and with food prices currently soaring this could represent a significant financial loss in the event of being underinsured.

Sylvia Newham at NFU Mutual commented: "Rural dwellers are often more susceptible to power cuts than those elsewhere and in just one blackout you could lose all your food.

"With increased food prices, the contents of a large freezer could easily run into hundreds of pounds so freezer insurance is now more vital than ever."

She added: "NFU Mutual is one of only a handful of major insurers that does not impose limits on the amount of food covered."

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