A growing number of people are being priced out of essential insurance. 

Insurance industry leaves customers out in the cold 

MANY of us are finding it more difficult -- or prohibitively expensive -- to arrange insurance for our cars and homes. 

The growing number of telephone insurers that only offer standard cover to standard customers are leaving many people out in the cold. 

A Treasury report in September highlighted the issue of "redlining" -- where insurers allegedly refuse all applications from customers who live in certain postcode areas. 

Insurers deny such exclusions, but premiums are often so inflated that people in apparently high-risk areas can be forced to go without cover. David Ross of Axa, an insurance company, says: "We would quote to any householder unless they have a conviction for fraud." 

People who live in properties which insurers regard as atypical - such as thatched cottages or windmills - can expect to pay up to 40% more for buildings cover. If your property is in an area that is deemed susceptible to subsidence, you should also brace yourself for a high premium. 

And if your home has already suffered a subsidence problem, you could be in for a shock. Paul Harrison of Berry Birch & Noble, an insurance broker, says: "It can be impossible to get new cover for a property that has a history of subsidence claims." 

A gentlemen's agreement among insurers should offer some protection to the consumer - the company that paid the original claim should continue to cover the property, even after the previous owner has sold it. 

Direct Line confirmed that it would offer continuous cover in the event of a subsidence claim. However, some experts dispute the strength of the agreement. The Subsidence Advisory Bureau, a specialist surveyor and insurance broker, says: "Insurers may agree informally to continue cover when a house is sold, but then fail to confirm the offer." 

Direct Line quotes an annual premium of £100.80 for buildings cover for a three-bedroom semi-detached house in Aberdeenshire built between 1946 and 1979, with an £85,000 sum insured and a £50 excess. For the same property in Kentish Town, London, which is prone to subsidence, the insurer quotes £253.05. 

If you live in a high-crime area, your contents insurance will be comparatively costly. A policyholder in Bruton, Somerset, would pay £71.40 a year for contents cover with Direct Line. In inner-city Leeds, the premium would be £326.55. 

Young male drivers have a worse claims record than other motorists and are penalised with expensive car insurance. 

If you try to add your son to your own policy, you can expect premiums to at least double. 

A 17-year-old who owns an inexpensive car and wants his own insurance policy may find he has to pay almost twice the value of the vehicle. He will also have to accept a higher excess than is usual. 

Several companies promise to help customers who fall outside the standard insurance categories. Direct Line, for example, has a specialist division - Privilege - to handle inquiries from those who are classed as high-risk. 

Customers who do not fit the standard criteria will normally have to deal through a broker, who can scour the market on your behalf and perhaps negotiate favourable terms and conditions. The British Insurance Brokers' Association (0207- 623 9043) can give details of brokers in several specialist categories. 

Masterquote (0870 6061346), a telephone broker, may be able to help motorists who have previous driving convictions. 

Or you could try an online service. The website www.Insurancewide.com aims to offer competitive premiums for all applicants, but those who fail the standard test are referred to a call centre. 

Copyright: The Sunday Times: January 9 2000

Exercises

1)	Make sure you know -- and could use yourself -- the specialist terms and idiomatic phrases that are underlined.

2)	Find alternative ways of saying:

(a)	cheap												
(b)	expensive											
(c)	high (i.e. for a price)										
(d)	likely to suffer from....										
(e)	not normal, unusual										
(f)	prepare yourself for sth.									
(g)	reasonably-priced										
(h)	to make an offer for										
(i)	to shop around											
(j)	too dear for people to afford									

3)	Give three examples of policyholders who may have problems finding insurance cover.