Sainsbury's expect a New Year spike

Sainsbury’s Home Insurance is bracing itself for a spike in claims now that the festive season is over. Christmas and New Year can prove costly for insurance companies, with figures suggesting that over £25 million could be paid out in Jan 2010. Last year, in the first week of Jan, the number of claims handled by Sainsbury’s was more than a third higher than a normal week and the amount paid out per claim was higher on average too by about one sixth.

All sorts of reasons have been advanced for the increase in claims. If homeowners are entertaining on Christmas Day, Boxing Day or New Year’s Eve their freezers can be stacked to the gills and if a power cut strikes the costs of ruined food can easily run into hundreds of pounds.

Then of course there is the damage which can be caused by houseguests. Spillages (with red wine being a favourite culprit), breakages and other damage to furniture are sadly all too common with guests who have had a bit too much of the Christmas spirit or with over-excited children running around.

Fires are another common feature of home insurance claims at this time of year, with Christmas tree lights, candles, log fires and overloaded plug sockets often being to blame.

If homeowners are away for the festive season it is sadly all too common for them to come home to disaster, with frozen pipes being a particular problem in freezing temperatures, especially if people have not had the foresight to leave their heating on at a low setting.

Finally of course there is the problem of burglary, one of the few “professions” which does not take a break over Christmas. With homes up and down the country being stuffed with expensive presents, the temptation is greater than ever for the unscrupulous thief.

It may be too late for this year but homeowners would be well advised to check that they have adequate insurance cover for Christmas 2010.