Self insurance warning issued
Date: 30/05/2008 12:00:00
Self-insuring is "something to consider" for homeowners but should not be counted on to cover big problems, an expert says.
The British Insurance Brokers' Association (BIBA) said the tactic of using savings as cover would be useless to most people facing difficulties such as legal issues.
Officials from the group said stored cash was only really useful as cover for smaller items and should not be thought of as a replacement for full
home insurance policies.
BIBA technical and corporate affairs executive Graeme Trudgill said: "What you have to bear in mind is that household policies also include liability cover."
He added this meant such policies can protect people if they are sued and face a legal battle, something few savings accounts are likely to be able to cover.
BIBA is the UK's leading general insurance organisation representing the interests of insurance brokers, intermediaries and customers.
The group counts leading companies in the insurance industry among its partner members.