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For UK customers only

Aviva Policyholder funds are managed by a group company, Aviva Investors Global Services Limited.

Aviva Investors has appointed a team whose purpose is to focus solely on Socially Responsible Investment, commonly known as SRI. A key objective being to ensure that further emphasis is placed on social, environmental and ethical issues as an integral part of the investment process.

Aviva Investors' policy on SRI is one of constructive engagement. This means it believes that making public demands to company management does not help to build a positive dialogue to bring about change and could be counter-productive to the engagement process.

Aviva Investors' fund managers have a programme of regular meetings with senior management of the companies in which they invest.

For UK customers only

The worst storms for 200 years hit the UK in the autumn/winter 2000 with the resulting floods costing the industry over £750m.

At present Aviva will continue to write flood insurance cover in a focused and controlled manner. We support in principle the ABI 2-year agreement but reserve the right to change rate and terms and to exclude cover in certain circumstances.

For existing customers in higher risk flood areas, premiums may be higher or the customer may be asked to pay a higher excess to reflect the increased frequency of flood claims.

In exceptional cases where flooding has occurred frequently, and where there is no planned defences being built within a reasonable timescale, flood cover may be withdrawn. Cases will be considered on an individual basis.

For new customers in high risk areas, all cases are considered on an individual basis much in the same was as areas affected by subsidence and where protections against theft are needed.

To help ensure the continued availability and affordability of insurance, Aviva will take a leading role in influencing the Government and industry bodies for the need for adequate flood defences, funding and planning controls.

October and November floods 2000

October 2000 was the wettest for 100 years and overall, autumn 2000 was the wettest for 200 years. A number of experts commented on the severity of the storms and floods:

“What was unusual this year was that instead of getting low pressure - a stormy spell of weather - followed by an interlude of high pressure, drier and more settled, storms just came rattling in one after another” - Helen Young, Met Office.

“The defences were designed to cope with the worst rainfall you could expect in 100 years... that was based on how much rainfall we used to have“ - Vivian White, BBC Panorama

Aviva claims

Between mid-October and mid-November, Aviva (formerly Norwich Union) received in excess of 50,000 claims for flood or storm damage. We received claims from all over the country with the majority relating to storm damage, for example, broken roof tiles, fallen trees and minor structural damage.

Flood claims were received from Wales, the West Country, Gloucestershire & Worcestershire, Kent, Yorkshire and East Sussex.

Since the severe flooding, we have been working closely with York city council to help them develop a 'flood template' for all local authorities to use in their future planning for floods.

Advice on what to do if your property is flooded

If you have been unlucky enough to suffer flooding, we recommend that you call your insurer's emergency helpline or contact your local broker as soon as possible.

Aviva's 24 hour Clubline numbers are 0800 012345 and 0800 555333 (all calls are free and lines are open 365 days a year).

The sooner you report the damage to Aviva, the faster we can get loss adjusters and repair experts to your home, to advise on minimising further damage and find out the information we need to finalise your claim.

Taking preventative measures

If you receive prior warning of flooding you may be able to take the following action to minimise damage to your home and belongings, but only if it is safe to do so and you have enough time - do not put yourself at risk!

• Protect entrances and external doors with sandbags, if you have them.

• Where possible, move furniture and electrical items upstairs - but don't risk an accident or hurting yourself by carrying heavy items.

• If you are unable to leave your property, fill a vacuum flask with a hot drink and take items such as a torch, warm clothing, a battery-operated radio (tuned to the local radio station for updates) and a mobile telephone (if you have one) upstairs, until the danger has passed or help arrives.

• If you have time, seal delicate items in plastic bags to protect them from water damage - but don't put yourself in any danger by wasting time, when you should be getting to a place of safety.

• Ensure that your insurance documentation is to hand with helpline numbers.

• Pack a small selection of dry clothes and toiletry essentials, including any medicines and emergency contact numbers.

After the event

If your home has been flooded, Aviva advises you take the following action:

• Turn off the electricity at the mains.

• Don't throw anything away - the loss adjuster will need to assess damage to your belongings for valuation purposes and see if it is possible to repair them.

• Lift any sodden carpets to allow the floor to dry, but do not throw them out.

• Use a low heat to gently dry things out - using a high heat can cause further damage. Safety first - do take care not to use electrical sources of heat near flood water.

• Once the floodwater has gone, take professional advice before you start redecorating. You may need to let brickwork dry out for some months before you can redecorate.

• If you are using a dehumidifier, make sure doors and windows are closed.

• If you are drying out your building by the central heating system alone, make sure the rooms are ventilated.

• Be patient - taking time to dry out your home properly now could save a lot of time later on when it comes to redecorating.

• If your property suffers severe flooding, you should not attempt to get through flood water to leave - it will probably be safer to move to an upper storey rather than risk wading through deep flood water, where there is a danger you could be swept away by the current.

What is covered?

Generally speaking, Aviva's household policies provide cover for contents of outbuildings, garages and garden sheds, and for garden items that are temporarily in the open.

The two Aviva household products available from insurance brokers are Home Plus and Your House. It is also possible to buy household cover direct through Aviva.

There is a £50 excess on any claim

What type of cover is provided?

• Cover includes vandalism, theft, fire, storm etc.

• Where possible, we will endeavour to replace items rather than offering a cash settlement.

What is not covered?

• The standard policies do not cover plants, shrubs, trees, greenhouse heating failure etc (except for Home & Gardens package - see below).

• Bicycles are not covered under the Contents section if left in your garden or on your drive. (Unless additional bicycle cover has been taken).

• Loss or damage is excluded if the property has been unoccupied for more than 30 days, or if the house is unfurnished.

Buildings cover vs contents cover

• If ornaments, statues etc are not fixed to the ground, they are covered by contents insurance, but if they are permanently secured, they are covered by your buildings insurance.

• Fences, garden walls and hedges would be covered under the buildings section of a household policy - but fences and hedges are not covered for storm or flood damage.

NB There is also an additional package that can be added to Home Plus policies, which gives greater cover for gardens, including plants and shrubs.

Home & Garden Package - cost £30

Garden cover

• £2,500 for cost of re-landscaping garden (including replacing plants, trees, shrubs).

• Cover against theft, malicious damage, fire, explosion, lightning, malicious persons, riot,theft or attempted theft, collision by vehicles, animals or aircraft and anything dropped by them.

• £250 single article limit.

• Policy excess - £50.

For UK customers only

How does postcode affect insurance cover and premium?

• The postcode is just one of the many factors that an insurer will consider when assessing a customer's premium. Postcodes are simply another form of geographical locator and are used in conjunction with other data.

• The insurer will refer to the postcode to check the profile of an area for subsidence risk, theft risk, flood risk, etc. For example, if a number of properties with the same postcode have made a claim for subsidence, that postcode may represent a greater risk for subsidence. Further investigation would be necessary before the buildings premium is set for properties in that immediate area.

• Individual insurers will rate postcodes differently, according to their own experience and data. So, for instance, Aviva may rate a postcode lower than RSA whose experience shows there is a high theft risk in that area.

What are the most common claims made?

• This will vary from insurer to insurer. Claims arising from water damage are the most common.

• Accidental loss of personal belongings and theft by forcible and violent entry are also common.

What is Legal Protection Cover and what are the benefits to the policyholder?

• Our legal protection cover will pay reasonable legal costs (including payments that your solicitor has to make on your behalf - eg paying expert witnesses). It gives you up to a maximum of £50,000 of legal cover in any one year.

• It offers a broad range of cover, such as:

  • Slipping and tripping - eg you may be covered if you trip on a loose paving stone and are injured

  • Breach of contract - such as wrongful dismissal or perhaps a tour operator sends you to a hotel which is not the one you booked and consequently you have a bad holiday

  • Your death and personal injury - such as due to medical negligence

• You are also covered for defending a claim made against you, but only if it concerns the sale of your private goods, eg in a dispute over the sale of your home or car.

• Customers have access to a free legal helpline as many times as they want each year. The most common types of problems our customers call about are boundary disputes (trees, fences etc) and disputes over faulty goods and services (eg a contractor does some work in your home that proves to be faulty).

How are lost or damaged items replaced?

• Policy wordings make it clear that, wherever possible, we will replace items rather than offer a cash settlement. This is because it minimises hassle for customers, who do not then have to get three comparable quotes and shop around for the best price for the replacement item - once the claim is validated, the customer simply has to take delivery of the replacement goods.

• We are able to use our 'buying power' to negotiate competitive prices for standard items (such as carpets, white and brown goods). This means that we can keep our costs down and, in the long term, these savings help us to control premium increases.

• In the case of unique or unusual items, we will endeavour to replace them - even if this means having a piece of jewellery made from scratch. If this is simply not possible, we will always consider the option of a cash settlement.

Is a policy affected if the policyholder goes away on holiday?

• Our policy states that cover is restricted if the home is unoccupied for more than 30 consecutive days. If the property is left unoccupied for this long (or longer) the risk of it being burgled or being damaged by a burst pipe, or suffering malicious damage, for example, increases.

• If the property is to be left unoccupied for longer than 30 days, the policyholder must let the insurance company know. The insurer may ask the policyholder to make arrangements for the property to be visited regularly by a responsible adult, to ensure it is secure and maintained in good condition. Additional security measures (eg an alarm or additional locks) may also be necessary in order for the insurance cover to continue.

How do you ensure that customers are not discriminated against if they make a claim?

We are bound by law to ensure that we do not discriminate against any customer on the basis of their religion or their sex. All insurers set their premiums according to their claims experience or their judgement of the likelihood of a claim being made. Making a claim would result in loss of claim free discount.

Does the policy provide any cover

1. For a wedding?
2. Over the Christmas period?

• Our household policies automatically increase the sum insured by £3,000 for the month of December to cover any Christmas gifts and provisions kept temporarily in the property.

• Similarly, the contents cover automatically increases by £3,000 for 30 days before and after a wedding to cover gifts.

• The contents cover also increases automatically by £3,000 for 30 days before and after a birthday to cover any presents.

• If necessary, you should adjust your sum insured once this temporary cover expires, to make sure your new gifts are covered.

Are contents in the garden, in garden sheds, greenhouses and outbuildings covered?

• The standard policy refers to cover for “contents in the open” - to make it clear that it does not cover any 'growing' items - but items stolen from a garden, drive, shed, greenhouse or outbuilding are likely to be covered by a standard household contract.

• HomePlus has an add-on package, called Homes & Garden, which now includes up to £2,500 of cover to re-landscape a garden, including plants and shrubs.

• The levels of cover will vary depending on the policy, but typically, the contents of your garden or drive will be covered for up to £1,000 (not including pedal cycles).

• Theft of contents from an outbuilding may also be covered up to a certain limit (Your House gives cover for up to £2,500), while the cover for theft of contents from a garage is more likely to be unlimited (ie up to the value of the sum insured).

As an insurer, how do you assure your customers that their premiums will be kept down

• Fraudulent claims are a major cause of premium rises across the insurance industry. We regularly meet with the ABI and other insurers to discuss and tackle the latest trends and have procedures in place to assess claims.

• There are also a number of discounts that homeowners can benefit from that help to keep their premiums low. These include:
  • Security - approved locks and burglar alarms
  • Being a member of a Homewatch scheme
  • Higher sum insured - discounts given off the premium
  • Age of property - discounts on post 1980 properties
  • Age of policyholder
  • Car and home discount
  • No claims discount
  • Combined Buildings and contents policy

Floods

1. How will you react in the event of a flood?
2. Which areas are most at risk of floods?
3. How can the public protect themselves against the dangers of flooding and minimise the consequences?

• If an Aviva Customer has suffered flooding, we recommend they call our 24-hour, 365 day a year free telephone service. We aim to get things back to normal as quickly as possible and will call out tradesmen to help sort out any damage.

• Some areas are more susceptible to floods - these are mainly eastern England, the central Midlands (Northamptonshire, Warwickshire) and the Thames estuary. Experience of flooding in certain areas may vary between insurers.

• Homeowners can help protect their properties against flooding by:

  • Protecting entrances and external doors with sandbags

  • Where possible, moving furniture and electrical items upstairs

  • Sealing delicate items in plastic bags to protect

  • Ensuring their insurance documentation is to hand with helpline numbers

  • Packing a small selection of dry clothes, toiletries, radio and mobile phone (if available) and moving upstairs until the danger has passed or help arrives

Which areas are most at risk of theft?

These will vary between insurers - however, inner city/town areas or highly populated areas have a higher risk of theft. Also, out of town, modern estates are attractive to thieves - professional thieves will target those houses obviously left unoccupied while people are at work.

How is the buildings re-build cost calculated?

• You should first find out the sq ft/m of the property (the external floor area). The best way is to go outside and measure, if possible, along the external wall, the length and width of the property - as a guide, the average pace is three feet. If you cannot measure outside, measure inside and add the thickness of the walls. Multiply the two figures together. This gives you the ground floor area.

• For upstairs, you can normally double the ground floor area but if the upstairs is a different size, measure as before and add the two figures. (For three-storey houses, only 70% of the floor area need be included). This gives you the sq ft/m area. A valuation or survey report may also have this information.

• Next, multiply the sq ft/m figure by the rebuilding cost. Most insurance companies have a Guide to House Rebuilding Costs, published by the Royal Institution of Chartered Surveyors (RICS) - these will vary between different regions of the country, the size of the property and will depend on the cost of surveyors/tradesmen in that area. You should be able to get the rebuilding cost from your insurance broker or insurer, or try the website for RICS or the ABI.

• Rebuilding costs vary according to the age of the property - for pre-1900 or listed buildings, you should seek specialist advice. The Royal Institute of Chartered Engineers may be able to help.

• Finally, you should then add a further 15% to allow for architects' and surveyors' fees.

If a customer moves house and their contents are damaged in the process are they covered?

• Loss of or damage to contents while in transit from one home to another, including packing and unloading, is covered provided that removals are carried out by professional removal contractors. The move must be in the UK, Republic of Ireland, the Channel Islands or Isle of Man. Valuables are excluded from this cover as are sea transits.

Do you cover students ie son/daughter away at university and what are the restrictions if any?

• Cover for students is a standard feature of their parents' household policy with Aviva. Students' cover is provided under the 'contents temporarily removed' section, to a maximum of £5,000 (under Your House).

• However, this cover only applies as long as the student intends to return to their parental home during vacation/at the end of the course.

• Theft for personal money is restricted to violent or forcible entry.

• If their parents have personal belongings cover, the student is covered too for anywhere in the UK and up to 60 days worldwide. Ordinarily, cover is calculated on parents' postcodes.

• If parents don't want to put their children on their policy (to protect their claim-free discount for example), then we would recommend they phone Harrison Beaumont on 01993 700200 for specialist student policies.

How will customers know how much their contents are worth?

• Many homeowners are underinsured - and don't realise it until they have to make a claim.

• We recommend that homeowners make a list of items, room by room, including things like carpets and soft furnishings. Most policies replace items with new items, so the cost of replacing items as new should be calculated.

• Many people forget to include things like clothing, bedding and contents in outbuildings, such as garages and sheds - so these also need to be included.

• If the customer has an index-linked policy, they need only calculate the costs at today's prices - otherwise they should add a percentage to take inflation into account.

• Any valuable antiques or jewellery should be valued professionally. Many insurance companies have associations with professional valuers to offer specialist deals.

• We would also recommend that homeowners make a videotape or take photographs of their contents - these can prove invaluable when it comes to making a claim. However, make sure they are kept away from the home.

Are customers covered for travel and, if so, for how long?

• Homeowners can take out an annual travel policy as an add-on to their household policy.

• For European cover - the cost is £65 (for a family including children under 23 if in full-time education), and £125 for worldwide cover where the insured is aged 65 or under.

• This covers all trips up to 60 days duration both abroad and within the UK and a special winter sports extension up to 21 days in any one year is available at an extra charge.

If someone is burgled after losing their keys, but there is no evidence of forced entry, does the policy cover them?

The policy would cover theft of contents but theft of personal money is restricted to theft following forcible and violent entry. In addition, our policy pays for the cost of replacing locks to external doors or alarm/safe systems if the keys are lost or stolen.

Are the sums insured index linked?

• This will vary according to the policy you have, but Aviva does index link sums insured, except for clothing and personal effects, money and credit cards.

If a customer's property has suffered some subsidence in the past will it be covered?

• This depends on the type of subsidence, when the problem was rectified and what was done to rectify the problem. However, we would normally recommend that homeowners keep their insurance with their existing insurer if they have suffered from subsidence.

• If an Aviva Customer makes a claim for subsidence, we will process the claim in the normal way and this should not necessarily affect future premiums, other than the loss of any claim free discount. Normally we would continue cover for the new purchase should our insured sell the property.

What difference does it make to put the policy in joint names?

• It makes no difference to the premium but may mean that any cheques received following a claim will be made out to both parties.

For UK customers only

Aviva has produced some simple tips for homeowners to help avoid the trauma of winter house problems:

• Locate main stopcock

• Lag all pipes and tanks with insulation material before winter sets in

• Ensure you have thick loft insulation Repair dripping taps to stop the water freezing and splitting the pipes

• If you go away leave your heating at the minimum setting

• Check whether your boiler is due for a service

• Repair loose roof tiles and ensure the whole roof is watertight

• Repair crumbling brickwork promptly to ensure water cannot get in and freeze

• Clean and flush out all gutters

• Check timber windows and door frames and repair or repaint where necessary

• Ask a friend or relative to visit your home every day when you are not there

And if the worst happens and a pipe bursts:

• Turn off the mains stopcock and turn on all cold water taps

• Switch off the central heating system

• If the pipe has frozen, thaw it with a hot water bottle or hair dryer - never use a blow torch, heat gun, cigarette lighter or matches

• Protect or remove items that may be damaged by water

To make a claim, Aviva Customers should call the 24-hour claims line on 0800 012345 or 0800 555333 (all calls are free).

For UK customers only

Checklist

If you are planning to go away, there are a few simple steps you can follow to protect your property:

• Cancel the milk and newspaper deliveries for the time you're away

• During colder months, leave your heating on - a lower setting will suffice - to protect pipes from frost

• Ask a trusted neighbour, relative or friend to keep an eye on your home and report anything suspicious to the police. Also encourage a neighbour to park their car in your drive while you're away

• Use timer switches, (readily available from DIY stores), to turn lights off and on during the evening to give the appearance that someone is at home

• Keep cash, keys, credit cards and other valuables out of sight - avoid putting keys on key hangers near doors. If you are leaving your car at home, ensure that your car keys are put away

• Never leave a spare key concealed anywhere near the front or back door - burglars know all the hiding places

• Don't have your home address on your luggage for the outward journey - put this only on the inside of your case

• Lock all doors and windows

• If you have an alarm, make sure that it is set

Media contact:

Liz Kennett, Aviva press office on 01603 688263

November 2003