The meaning behind: Authorised & Regulated by the FCA
Niraj Mamtora • 13 January 2021
What does FCA Regulated Mean?
The body that is responsible for the regulation of all financial services in the United Kingdom is the Financial Conduct Authority (FCA). The main targets of FCA are to increase market integrity, promote healthy competition, and to protect customers. It achieves all of this by conducting three operational activities that include supervision, enforcement, and authorisation. As a result, all investment firms, consumer credit firms, and financial service providers need to be authorised. Moreover, the Bank of England's Prudential Regulation Authority (PRA) is responsible for the regulation of all insurance companies, banks, and credit unions.
Operational activities of the FCA
FCA has made it its main objective to make sure that all financial services prioritise customer protection against profit maximisation. Their regulation method I based on three major operational activities, which include:
Authorisation:
In order for a financial service provider to be regulated by the FCA, it needs to be registered or authorised by the FCA. The FCA then looks over the firm and the individuals involved to ensure that all required standards are met dutifully. For credit unions, insurance companies, and banks, the regulation process is undertaken by two bodies, including the FCA and the Prudential Regulation Authority (PRA).
Supervision:
Under this operational activity, the FCA supervises to ensure that all required standards are met by the individuals and firms. The element of risk is of primary importance that falls under the supervision. This operational activity is also based on a three-pillar approach with the three pillars being:
Proactive supervision of the largest firms- Reactive supervision as a response to the events that take place
- Thematic analysis which takes into account the risks impacting entire sectors or multiple firms
Enforcement:
This operational activity involves intervention by the FCA to charge penalties on the firms or individuals failing to meet the required standards. The FCA can impose penalties, including prosecution, compensation for the consumers, and orders to stop the trade.
The whole regulation by FCA is performed in order to make sure that the consumers are protected. As a result, consumers can gain the confidence in the services provided to them by the firms or individuals. The regulation and consumer protection directly impact the economic stability of a country. This is because increased consumer trust tends to increase the growth and competition.
Who does the FCA regulate?
The main responsibility that FCA undertakes is the regulation of the conduct of financial markets and firms. The finance industry of the UK has defined financial services as the economic providers. Several types of businesses that have to manage money fall under this definition laid out by the finance industry. These include banks, insurance companies, credit card companies, stock brokerages, and credit unions.
Apart from these businesses, the FCA also provides regulation services for listed corporates and their officers. However, the regulation undergoes in compliance with the listing and the disclosure obligations. The FCA can also bring enforcement proceedings against anyone for the civil and criminal offenses of manipulating the market and insider dealing. This a part of their role that is to maintain and restore market integrity. If any authorised firms or their officers breach the Money Laundering Regulations, the FCA holds the authority to prosecute them.
The funding to the FCA comes directly from the firms that it is responsible for regulating. These firms pay the FCA as part of the fee it charges for services. The FCA won't provide any regulation activities to the financial services providers as long as they are not registered or authorised by the FCA. If an applicant wants to get themselves authorised, they have to submit their qualification and experience, business plans, and qualification and experience. The FCA then thoroughly analyses these details before making a final decision. Once a positive decision has been made, all authorised firms are required to comply with the principles and rules and meet all minimum standards.
There are a total of 59,000 firms being currently supervised by the FCA. Most of these firms are serving wholesale and retail consumers as well as users of many of the world's most significant and largest global markets. The complexity and size of all these firms vary greatly. Moreover, FCA provides a level of regulation based on the level of risks of harm the firm poses to market integrity and consumers.
Why is it important to be FCA regulated?
Investing money is a risky business. As a result, consumers take extra caution while investing their money as everyone wants to avoid working with a firm that is unreliable and untrustworthy. FCA regulation or authorisation means that a consumer can trust the firm. It ensures that the firm treats all consumers in compliance with the strict criteria laid out by the FCA. As a result, consumers do not have to do extra research on the firm in making their final call. This is because FCA regulation ensures that all firms that fall under their supervision are complying with all the requirements of the Financial Services and Markets Act 2000 (FSMA).
Another major importance of FCA regulation is the impact it has on the economic stability of the country. This is because consumer trust in financial services is directly linked with the stimulation of growth and competition. Conforming to the FCA's is also beneficial for the businesses. This is because new businesses are won by financial service providers who always put their consumers first. History has shown that these businesses are won by the financial firms based on the quality, service, and price they have to offer.
FCA has done wonders for the financial industry ever since it came into existence. The importance of this can be understood by the fact that before the FCA regulation of the financial industry, there were billions of pounds of fines being paid for financial crimes. These were in the form of compensations, penalties, and fines. The FCA has made it its utmost priority to monitor the sales-driven culture. Based on this, it implements suitable enforcement and control measures to make sure that the consumers are protected and the economy stays stable.
How do financial services providers become authorised and registered by the FCA?
In order to get registered or authorised by the FCA, an application has to be submitted. Once the application form is sent to the FCA, it will appoint a case officer for the firm. The responsibility of the case officer is to work with the firm to understand its procedures and processes. This evaluation is followed by an assessment by the officer to ensure that all the standard requirements in the FCA Handbook are being met by the business.
Moreover, the FCA also checks against all key position holders in the business, including the directors and other such as compliance officers. They then approve whether these individuals should continue to hold their respective positions. Once this whole process has been carried out, the FCA writes to the applicant to tell them whether they have been authorised or not. If the applicant is not authorised, the FCA provides them with a fair explanation for the rejection.
There is also an application fee to be paid by the applicant. If authorisation is confirmed, the applicant then has to pay an annual fee to the FCA for its regulation services. Moreover, they also have to effectively stay in communication with the FCA and submit any important reports on a regular basis.
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At Forum Insurance we know that if we look after our clients, our clients will look after us. With over 30 years of experience we ensure our clients have the correct covers tailored to protect themselves and their business. We use our extensive access to the wider insurance market to find the best cover at the best price. We are pleased to see the Financial Conduct Authority (FCA) announce that from January 2022 home and motor insurance policies renewals will be offered the same price as new customers. Sheldon Mills, Executive Director, Consumers and Competition at the FCA commented; “These measures will put an end to the very high prices paid by many loyal customers. Consumers can still benefit from shopping around or negotiating with their current provider – but won’t be charged more at renewal just for being an existing customer.” Click here to read the full press release. This is already a part of our renewal process; as we approach the insurance market and search for the best cover and price for each policy. This is one of our key reasons we have a 4.8 out of 5 star rating online . The new rule set by the FCA will improve genuine competition within the insurance market, as firms will no longer be able to offer below-cost prices to attract new customers. This predatory pricing practice harms consumers long term by increasing insurance premiums for everyone. We look forward to seeing the FCA’s next steps and welcome any changes that improve the insurance market for our clients. Want to experience how we put our clients first? Call us on 0208 909 2899 and get a same day quote.
What role does insurance play in securing long term success? Retail stores play a vital role in the local community across the nation by creating jobs and providing access to essential products and services. In our 30 years experience protecting retail and convenience store insurance risks, we know that to achieve long-term success retail store owners need their business to run smoothly, and most importantly be protected from any unforeseen incidents. Insurance is designed to do exactly that, protect your livelihood, your assets and your customers – paving the way for your business to truly grow. There are many insurance covers available to protect you and your business. Whether you’re looking for a new policy or checking the suitability of your existing policy we’ll discuss the plan to success. Liability Cover There are two main types of liability insurance to provide protection against accidents in your store. Public liability insurance is designed to cover compensation payments and legal costs if a member of the public sues your business because they have been injured or their property has been damaged. For example, if an employee fails to put out a wet floor sign after cleaning the floor and someone slips and breaks a bone. In this instance your public liability insurance would cover the financial impact of an unexpected claim up to the maximum stated limit of liability. Employers liability insurance is a legal requirement, and is designed to protect you from financial loss if your employee becomes ill or injured whilst under-taking their work for you. Business Interruption Cover In the event your business cannot function as usual you will most certainly start losing income. Business Interruption insurance will put your business back in the same trading position it was before the unforeseen event occurred. This insurance will cover your loss of revenue or profit for the period of inability to trade. With this cover in place you can assure that any interruptions in your business, will not result in financial loss. No more sleepless nights that a burst water pipe or fire damage are costing you lost income as your store is closed. Contents Cover Protecting vital assets like your fixtures, fittings, and equipment is essential for the function of any business. You should ensure your contents are covered on a new-for-old basis to secure your longevity in the industry. Accidental damage, a burst pipe or an electrical fire are risks we can prepare for, but the replacement costs can be enormous. Having the incorrect level of coverage will leave you out of pocket, due to the ‘averages clause’ most insurers follow. This clause can result in insurers to reducing claims settlements if you accidentally or intentionally underestimate the value of your contents. For example, you have valued your contents at £20,000 but the actual value is £40,000. This is an underinsurance of 50%, according to the clause the insurer is entitled to pay out only 50% of the claim value. It’s horrible to think, but to continue this example the business is burgled and the business claims for £12,500 of losses. The insurer can use the average clause to pay out 50% of the value of the claim meaning only a settlement of £6,250 and the other £6,250 would be paid from your business. Self-insuring or underinsuring can save you a small sum of money in the short term on the premiums, but in the event of a claim those savings can be wiped out in an instant setting you back a lot further than your initial saving achieved by reduced levels of cover. Don’t be caught underinsured. Typically the store’s general stock is not covered under your contents insurance and will need to be covered separately on the policy. For grocers, cigarettes, wines and spirits should be covered separately to general stock. Deterioration of Stock If you have frozen stock, this should also be covered separately, which can provide cover for damaged stock in the event of breakdown of the fridge or freezer. If you have a cold-room there are increased risks and this will need to have its own provisions within the policy. Goods In Transit Goods in transit will cover you for any loss or damage to stock while traveling between your supplier(s) and your store(s) up to your chosen limit. Theft Of Cash Theft is a daily risk your convenience store faces. Whether you’re open or closed, there will be cash at your premises. The cover available is often restricted depending on the circumstances, for instance there will be a limit on cash covered in the till, in a locked safe overnight, and when in transit. If you’re in doubt that you’re sufficiently covered, use your busiest day possible and set your cover to those levels. If you’re transporting cash from your store to the bank or bank to the store then you would need cash in transit. Fidelity cover is when your employees steal cash from your business, it isn’t always required but as you grow so will your risk of it occurring. What Now? Not every business has the exact same requirements and risks. Getting an expert review of your insurance with a broker will put your mind at ease and secure your path to long term success. At Forum Insurance we offer free reviews and quotations. We will create you a tailored insurance policy with the covers that are a right fit for you and your business at competitive rates. Request a call back via the green button on the right.
Valentine’s day is full of romance and excitement for many people, but if you’re not careful it has the ability to leave you emotionally and financially distraught. There are many risks which are not considered which can result in an increase in insurance claims for lost or stolen jewellery, fires caused by candles or water damage from overflowing baths. Without the right insurance cover, the claim for the above reasons might be declined. This can leave you without compensation resulting in an emotional and financial loss. What can you do to reduce the chances of something going wrong this Valentine’s day? Expensive jewellery and watches The gift of jewellery is almost synonymous with Valentine’s day, most of these items can be covered by your home contents insurance policy. Single item value There is a value limit for any single item which is covered under your policy, an industry standard is around £1,000 although this does vary. Any item valued above this will need to be specified on the policy. Depending on the price of the item this can be a problem, we recommend checking your insurance policy for “single item limit”. If the item you want to insure exceeds the single item limit then contact your insurance company to list the item, note, you may need to pay extra for your cover or insurer it separately depending on the value. For your benefit, we recommend you keep ownership of the valuable items such as original receipt for the item, photographs or official valuations. In the event of a claim these will be vital to a successful claim. Away from home personal possessions There is a greater risk of something being lost or stolen when away from home, especially if it’s expensive jewellery, equipment or technology. Without cover away from your home you won’t be able to claim. Most standard policies only allow you to claim for lost or stolen items in and around the home so we recommend requesting this cover or using an insurance broker that can tailor your policy to your needs such as Forum Insurance. Fire Hazards Often you don’t think of fire hazard because you’ve lit candles before, you’ve used your fireplace or electric heater before and nothing has gone wrong. But in fact the risk of fire is always there but be more cautious on Valentine’s Day. Remember to turn off all candles, gas or electric heating sources when out of the room, going to sleep or when the area is heated up enough. Flood Hazards I doubt you’ll experience a flood in the traditional thought of it, from a river or excessive rainfall but more likely from a romantic bath. Remember to turn off the taps and remove the bath plug to stop it overflowing. If the bathtub overflows it can ruin your bathroom causing damp or even impact lower floors by destroying ceilings and floorboards. A leak from your bathroom to a floor below causes the cost of a claim increasing, which will impact your pocket through your insurance premium, or at the worst you’ll have to pay for repairs yourself. We recommend having accidental damage which will provide compensation to your property and contents through, yes, accidental damage. It is not often standard on policies so be sure to check your documents. Without it, you will be left having to pay for repairs and compensation out of pocket for the water damage. What’s next? Next, get an insurance policy that will cover you this Valentine’s Day for all the mentioned risks. At Forum Insurance it is within our consultation phase that we assess what type of home insurance policy you need. In fact, we will custom build you a policy so that you don’t have the wrong cover and to make sure you’re not overpaying. For more information speak to a member of our team on 0208 909 2899 or visit our website to request a call back.
The recent pandemic times have left everyone in a financial crisis, and during such phases, it is advisable to keep your budget in check. There are various ways in which you can cut back on the costs, and no matter how small that saving is, it will compound over time. One of the things that require our time and investment in home insurance. These policies act as a safety net in case of any theft or accident. This can account for a significant chunk of our income, so we need to be aware of how to bring the insurance premium down. One resourceful way of doing that is by investing in improved home security. The money that you spend in the security installations will be covered over time in the form of a decreased annual premium. Here are some ways you can upgrade your home security and eventually reduce premium costs: Security Locks Investing in secure locks can help in reducing your premium insurance costs and ensure the safety of your home. But this includes modern locks and not the conventional style locks as thieves are familiar to them. If you already have some sort of lock system in place, you can opt for an upgrade. It is better, however, that you go for locks approved by the British standard as they have been subject to various tests to ensure they are resistant to all sorts of attack techniques. Alarms This might sound reasonably traditional to you, but modern alarms are a great way to secure your house and intimidate anyone who tries to break in. The warnings come in many different forms, such as smoke alarms or home intruder alarms. The smoke alarm can either be a standalone variety that will go off if there is any smoke in the premises of a system alarm that automatically calls the firefighters if it recognises smoke inside the house. It is recommended to do a fire drill just to confirm the functionality of these alarms and to be on top of any maintenance or wear in tear, especially in terms of battery replacement. Home intruder alarms are usually installed on entry points such as doors or windows and automatically make a loud sound once they are triggered. These are often wireless and some with pet-friendly sensors to reduce any discrepancy. Some of them are designed in a way that does not make noise but alerts the security officials in the area to reach the site of the breach. CCTV Installation Modern technology makes way for new and improved methods of home security. CCTV cameras are one such upgrade that puts your mind at ease with regards to home security. Installing a CCTV camera increasingly lowers your chances of a possible theft which then gradually leads to a lower premium. You can establish one or several cameras in various locations to monitor every activity that occurs in your home premises and surrounding areas. The entire footage is recorded and connected either to your phone or a backup memory card so you can easily access it if needed. Neighbourhood Watch Scheme The neig hbourhood watch scheme has been around for many years and is still considered to be a valuable asset in maintaining security. It not only looks out for the community but also makes others keep a keen eye out for any unwanted entry in your house too. This scheme is also a great way of spreading awareness among the local communities on how to protect themselves against any harm. It brings together the community members in a way that serves every person. Overall, it is believed to reduce premium costs so ultimately, you would be saving up as well as returning the favour to the community . Final Thoughts There is no doubt in the fact that security policies markedly reduce your home premium by a fraction of the total cost. All the retained money can be used elsewhere either for personal expenditures or just savings, the true benefit is peace of mind.
The legal definition for a sole trader states that it does not have a separate legal existence from its owner. Keeping this in mind, all sole traders must know that business insurance is vital for them to protect their business and personal interests. After all, running a business all alone involves putting your financials in a lot of risks. So, better be safe than sorry, and get yourself business insurance to protect you from the worst! Here at Forum Insurance, we tailor the perfect business insurance for sole trader to ensure that all their personal and business interests are safeguarded so they can enjoy complete peace of mind and take risks that would help their business grow! Why Is Business Insurance Vital For Sole Traders? There are plenty of reasons why a sole trader must get business insurance, no matter how big or small their business is. Here are few of the several reasons why they should do so! Insurance Keeps Your Business Running Smoothly As you might already know, sole traders cannot afford any time off, and they need to work continuously to keep on earning their living. Without you working around the clock and managing everything, your business will take a quick dip. However, this is something that you can control. What if something happens that is out of your hands? For instance, a theft or a robbery? Well, even if you are working around the clock, a theft or a robbery can still halt your business for some time. However, if you have business insurance and your claim succeeds, all the losses suffered and the profits you have to forgo because of a non-functioning business would be paid by your insurance company, bringing your business back on its feet! Builds Credibility Having business insurance plays a great role in building credibility in the eyes of your prospective clients and customers. An insurance builds trust, and gives reassurance to the clients that you are a safe bet in case things go south as you have complete coverage! Business Insurance Protects Your Personal Assets As a sole trader, your personal assets are at risk of lawsuits as well. This means that in case you go bankrupt or liquidate for whatever reason, claimants can come after your personal property to recover money. A business liability insurance, professional liability insurance, or malpractice insurance can safeguard your business and personal assets in case you lose a personal injury claim or any other lawsuit. You Are Responsible For Property Damage And Other Liabilities Being a sole trader, you are the only one responsible for any property damage that occurs on the premises for whatever reason. If you want it to be covered, you need to have business insurance, or else paying it all from your pockets is nearly impossible. On the other hand, if an employee or a customer gets injured while on your business property, they have the legal right to sue you for compensation. Here, considering all the legal expenses and the damages, you would need business insurance to safeguard your business, or you would most probably liquidate. Different Types Of Business Insurances There are multiple kinds of business insurance policies for you to choose from. Hence, it is essential that you have adequate knowledge about them all. Sole Trader General Liability Insurance The general liability insurance protects you when a client brings a claim against you. This insurance provides you with all the legal costs of handling the lawsuit and even the compensation in case you end up losing it. Other risks such as bodily harm and property damage are also covered in the general liability insurance. Sole Trader Products Liability Coverage As the name itself suggests, the sole traders liability coverage protects your business against claims brought forward due to incidents arising from your products. This can also be added with the general liability insurance, but it totally depends on the insurance policy. The claims are generally brought forward by people who have a negative effect on their business because of using your product, or by those who are harmed or injured in any way because of using your product. Professional Indemnity/Liability This specific type of insurance protects you in case your customer or client suffers from a loss due to an error you made while providing them with a service. The loss is often in monetary value, and that client is looking for compensation for the error you made. Professional Indemnity will protect you from such legal actions. Sole Trader Commercial Auto Insurance If you use any vehicle for commercial purposes, you need to get commercial auto insurance as well. It will protect you from any unfortunate events such as accidents, and even personal injury to other people and employees. Some insurance policies also protect all the vehicles being used by the business from vandalism and theft. Life Insurance Getting life insurance is essential as part of your business insurance. Being the sole owner, in case the worst happens and you lose your life, life insurance ensures that the beneficiaries receive a considerable amount of money. It will allow your family to be financially secure after the only breadwinner passes away. With complete peace of mind of their family being protected, a sole trader can work more efficiently on their business and be as profitable as they can. Hence, speak with expert insurance brokers such as those at Forum Insurance so they can safeguard all your interests and tailor the best possible Business Insurance for you. Conclusion In a nutshell, allow experts at Forum Insurance to do all the hard work for you and let them use their expertise to make the most viable Business Insurance policy for you at highly competitive prices! Once you are covered, you can focus on things that would help grow your business and profits.
At Forum Insurance we know that if we look after our clients, our clients will look after us. With over 30 years of experience we ensure our clients have the correct covers tailored to protect themselves and their business. We use our extensive access to the wider insurance market to find the best cover at the best price. We are pleased to see the Financial Conduct Authority (FCA) announce that from January 2022 home and motor insurance policies renewals will be offered the same price as new customers. Sheldon Mills, Executive Director, Consumers and Competition at the FCA commented; “These measures will put an end to the very high prices paid by many loyal customers. Consumers can still benefit from shopping around or negotiating with their current provider – but won’t be charged more at renewal just for being an existing customer.” Click here to read the full press release. This is already a part of our renewal process; as we approach the insurance market and search for the best cover and price for each policy. This is one of our key reasons we have a 4.8 out of 5 star rating online . The new rule set by the FCA will improve genuine competition within the insurance market, as firms will no longer be able to offer below-cost prices to attract new customers. This predatory pricing practice harms consumers long term by increasing insurance premiums for everyone. We look forward to seeing the FCA’s next steps and welcome any changes that improve the insurance market for our clients. Want to experience how we put our clients first? Call us on 0208 909 2899 and get a same day quote.
What role does insurance play in securing long term success? Retail stores play a vital role in the local community across the nation by creating jobs and providing access to essential products and services. In our 30 years experience protecting retail and convenience store insurance risks, we know that to achieve long-term success retail store owners need their business to run smoothly, and most importantly be protected from any unforeseen incidents. Insurance is designed to do exactly that, protect your livelihood, your assets and your customers – paving the way for your business to truly grow. There are many insurance covers available to protect you and your business. Whether you’re looking for a new policy or checking the suitability of your existing policy we’ll discuss the plan to success. Liability Cover There are two main types of liability insurance to provide protection against accidents in your store. Public liability insurance is designed to cover compensation payments and legal costs if a member of the public sues your business because they have been injured or their property has been damaged. For example, if an employee fails to put out a wet floor sign after cleaning the floor and someone slips and breaks a bone. In this instance your public liability insurance would cover the financial impact of an unexpected claim up to the maximum stated limit of liability. Employers liability insurance is a legal requirement, and is designed to protect you from financial loss if your employee becomes ill or injured whilst under-taking their work for you. Business Interruption Cover In the event your business cannot function as usual you will most certainly start losing income. Business Interruption insurance will put your business back in the same trading position it was before the unforeseen event occurred. This insurance will cover your loss of revenue or profit for the period of inability to trade. With this cover in place you can assure that any interruptions in your business, will not result in financial loss. No more sleepless nights that a burst water pipe or fire damage are costing you lost income as your store is closed. Contents Cover Protecting vital assets like your fixtures, fittings, and equipment is essential for the function of any business. You should ensure your contents are covered on a new-for-old basis to secure your longevity in the industry. Accidental damage, a burst pipe or an electrical fire are risks we can prepare for, but the replacement costs can be enormous. Having the incorrect level of coverage will leave you out of pocket, due to the ‘averages clause’ most insurers follow. This clause can result in insurers to reducing claims settlements if you accidentally or intentionally underestimate the value of your contents. For example, you have valued your contents at £20,000 but the actual value is £40,000. This is an underinsurance of 50%, according to the clause the insurer is entitled to pay out only 50% of the claim value. It’s horrible to think, but to continue this example the business is burgled and the business claims for £12,500 of losses. The insurer can use the average clause to pay out 50% of the value of the claim meaning only a settlement of £6,250 and the other £6,250 would be paid from your business. Self-insuring or underinsuring can save you a small sum of money in the short term on the premiums, but in the event of a claim those savings can be wiped out in an instant setting you back a lot further than your initial saving achieved by reduced levels of cover. Don’t be caught underinsured. Typically the store’s general stock is not covered under your contents insurance and will need to be covered separately on the policy. For grocers, cigarettes, wines and spirits should be covered separately to general stock. Deterioration of Stock If you have frozen stock, this should also be covered separately, which can provide cover for damaged stock in the event of breakdown of the fridge or freezer. If you have a cold-room there are increased risks and this will need to have its own provisions within the policy. Goods In Transit Goods in transit will cover you for any loss or damage to stock while traveling between your supplier(s) and your store(s) up to your chosen limit. Theft Of Cash Theft is a daily risk your convenience store faces. Whether you’re open or closed, there will be cash at your premises. The cover available is often restricted depending on the circumstances, for instance there will be a limit on cash covered in the till, in a locked safe overnight, and when in transit. If you’re in doubt that you’re sufficiently covered, use your busiest day possible and set your cover to those levels. If you’re transporting cash from your store to the bank or bank to the store then you would need cash in transit. Fidelity cover is when your employees steal cash from your business, it isn’t always required but as you grow so will your risk of it occurring. What Now? Not every business has the exact same requirements and risks. Getting an expert review of your insurance with a broker will put your mind at ease and secure your path to long term success. At Forum Insurance we offer free reviews and quotations. We will create you a tailored insurance policy with the covers that are a right fit for you and your business at competitive rates. Request a call back via the green button on the right.
Valentine’s day is full of romance and excitement for many people, but if you’re not careful it has the ability to leave you emotionally and financially distraught. There are many risks which are not considered which can result in an increase in insurance claims for lost or stolen jewellery, fires caused by candles or water damage from overflowing baths. Without the right insurance cover, the claim for the above reasons might be declined. This can leave you without compensation resulting in an emotional and financial loss. What can you do to reduce the chances of something going wrong this Valentine’s day? Expensive jewellery and watches The gift of jewellery is almost synonymous with Valentine’s day, most of these items can be covered by your home contents insurance policy. Single item value There is a value limit for any single item which is covered under your policy, an industry standard is around £1,000 although this does vary. Any item valued above this will need to be specified on the policy. Depending on the price of the item this can be a problem, we recommend checking your insurance policy for “single item limit”. If the item you want to insure exceeds the single item limit then contact your insurance company to list the item, note, you may need to pay extra for your cover or insurer it separately depending on the value. For your benefit, we recommend you keep ownership of the valuable items such as original receipt for the item, photographs or official valuations. In the event of a claim these will be vital to a successful claim. Away from home personal possessions There is a greater risk of something being lost or stolen when away from home, especially if it’s expensive jewellery, equipment or technology. Without cover away from your home you won’t be able to claim. Most standard policies only allow you to claim for lost or stolen items in and around the home so we recommend requesting this cover or using an insurance broker that can tailor your policy to your needs such as Forum Insurance. Fire Hazards Often you don’t think of fire hazard because you’ve lit candles before, you’ve used your fireplace or electric heater before and nothing has gone wrong. But in fact the risk of fire is always there but be more cautious on Valentine’s Day. Remember to turn off all candles, gas or electric heating sources when out of the room, going to sleep or when the area is heated up enough. Flood Hazards I doubt you’ll experience a flood in the traditional thought of it, from a river or excessive rainfall but more likely from a romantic bath. Remember to turn off the taps and remove the bath plug to stop it overflowing. If the bathtub overflows it can ruin your bathroom causing damp or even impact lower floors by destroying ceilings and floorboards. A leak from your bathroom to a floor below causes the cost of a claim increasing, which will impact your pocket through your insurance premium, or at the worst you’ll have to pay for repairs yourself. We recommend having accidental damage which will provide compensation to your property and contents through, yes, accidental damage. It is not often standard on policies so be sure to check your documents. Without it, you will be left having to pay for repairs and compensation out of pocket for the water damage. What’s next? Next, get an insurance policy that will cover you this Valentine’s Day for all the mentioned risks. At Forum Insurance it is within our consultation phase that we assess what type of home insurance policy you need. In fact, we will custom build you a policy so that you don’t have the wrong cover and to make sure you’re not overpaying. For more information speak to a member of our team on 0208 909 2899 or visit our website to request a call back.