Insurance deals need to cover valuable possessions

New research shows that two-thirds of respondents have a potentially valuable collection of items but many are unaware of how much it is worth.

Findings from Halifax Home Insurance revealed that 47% said they do not know how much their items could be worth while a further one in 10 have no home contents insurance in place.

Additionally, 38% think their valuables are covered but are not certain about the policy details.

David Rochester, head of underwriting at Halifax Home Insurance, said: "Although in many cases collectables are unique and irreplaceable, most people would at least want to recoup any financial loss in the event of them being stolen or damaged.

"We'd recommend anyone who has a potentially valuable collection to get it valued by an expert every two years and ensure they obtain a dated copy of the valuation certificate."

The survey also showed that 19% of people said they were keeping these collections in the hope that they will increase in value in the future.

Rate standstill prompts advice to fix home loans

BORROWERS were advised yesterday to lock in to a fixed rate mortgage after comments from the European Central Bank were interpreted as signalling an end to the current cycle of rate cuts.

Economist Austin Hughes of KBC Bank said it was now likely eurozone rates would not go below their current level of 1pc even if the first hike in interest rates seems far away.

Comments from ECB president Jean-Claude Trichet yesterday indicated that central bankers believe the worst is over for Euorpean economies, but that the turnaround would be slow.

Mortgage

Mortgage adviser Karl Deeter of Irish Mortgage Brokers warned that some fixed rate mortgages have already started to rise.

In March, before the ECB dropped its main rate to 1pc, homeowners could get a five-year fixed rate of 3.6pc from AIB, but now that has crept up to 3.69pc.

"Profit margins are moving upwards while the ECB's base rate moved down. Already that means you'll pay just over €20 per month more on a €300,000 mortgage."

Mr Deeter said the danger of a return to inflation was evident. Any rise in inflation would spark the ECB to start pushing up rates.

Commodity prices, such as gold, copper and oil, were all rising. These were all signs that inflation is coming, Mr Deeter said.

Frank Conway of Irish Mortgae Brokers said the cycle of interest rate rises appears to have run its course.

Mr Conway said that with fixed rate so low, the argument for fixing has never been stronger.

"For consumers who have experienced savage wage cuts (in the private sector) as well as increased taxation by way of income and pension levies, fixed-rate mortgages can provide excellent insulation against rising mortgage repayments.

"They also become a great budgeting tool for homeowners who need to manage their day-to-day finances," Mr Conway said.

The Professional Insurance Brokers' Association (PIBA) said consumers should consider fixing, but not at any price.

Its chief executive Diarmuid Kelly said some short-term fixed rates may not be optimal if interest rates rise substantially within the next two years.

"PIBA would caution against such short-term fixed rates, as they may not represent value taking account of likely medium term economic realities.

"The kind of stimulus packages being injected into the US and belatedly European economies are likely to lead to increased inflation to which the natural economic response will be increased interest rates.

"For an extra payment of €96.14 per month on a loan of €190,000 a person can avail of a five-year fixed rate rather than a two-year fixed rate giving them security against upsurging interest rates after this deflationary period," he said.

Months later, flood recovery still ongoing

TUMWATER, Wash. -- Most of the Tumwater Fish Hatchery is back up and running, but not all.

The Deschutes River backed up so high in January that the water level rose up to 6 feet, filling a huge space near the fish ponds with gravel, sand and other debris.

Crews have been dredging out the buildup, but their work isn't done. Part of the lower fish ladder still needs work.

The gushing waters also wiped out a safety fence where people can stand to get a good look at the falls, and will cost close to $3,000 to replace it.

"These are a bunch of small projects where that we're working," said Willie Nunn of FEMA.

The damages were small by FEMA standards, but large to most counties that don't have tens of thousands of dollars to spare for repairs. Thirty three of the state's 39 counties have ongoing repair projects.

FEMA works closely with the state to make sure each of those projects is getting done since they involve community infrastructure. But they also work closely with homeowners to make sure they're getting the help they need.

"If they feel that something's missing they need to call back, they need to let us know. They need to let the state know. Because if we don't don't know, we can't help," said Nunn.

Now, FEMA and the state are pushing to prevent the damages from recurring in future storms.

"If you've been flooded, you may qualify or be eligible for a mitigation grant that would elevate your home so that we can turn around and prevent the flooding in the future," said Kurt Hardin of the state Department of Emergency Management.

Studies indicate each dollar spent to prevent damage saves taxpayers $4 in repairs.

And residents shouldn't skip flood insurance, even if they don't live in a flood-prone area. Over the course of a 30-year mortgage, a homeowner's risk of flooding is one in four while the risk of fire is just one in ten. And one third of all flood insurance claims are by residents who live in low-risk communities.

"If a water main breaks and they get flooded, they may not be eligible for any assistance except flood insurance," said Hardin.