‘Money loss risk’ for home stashes
Article Category: Debt Management Help and Advice
Building up a stash of savings in the wardrobe or under the bed can actually be adding to consumers’ debt problems, according to Cornhill Direct.
The insurer warns that stockpiles of cash are unlikely to be reclaimable on insurance policies if they are stolen.
With a cumulative total of £4.6 billion believed to be under the nation’s mattresses and floorboards, the combined debt risk could be substantial.
“Our home contents policy provides protection for money kept in the house, but it is never a good idea to keep large sums in the house,” asserts spokesperson Mark Bishop.
Exclusions to the insurance cover include money not reported as stolen within 24 hours, or which goes missing when there is a paying guest in the house.
And with one respondent to the survey keeping their savings in the freezer, 45 per cent of those queried predicted the amount of cash kept at home will grow following the Northern Rock crisis.
Simon Ward of asset management firm New Star this week observed that Northern Rock could be in debt of about £7 billion.
His comments come as the Bank of England’s “other assets” - which include its support for the financial services provider - have risen by that amount since last week.
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