Asda Money t/a Asda Financial Services Limited

April 01, 2013 01:00 ET

Power Cuts and Your Home Insurance: Are You Covered?

Asda Money reveals that the UK could be facing a power shortage equivalent to 1,000 households in 2015/16(1), if fears regarding a shortfall in electricity are realised.

LEEDS, UNITED KINGDOM--(Marketwire - April 1, 2013) - This prediction would mean that the chance of network operator National Grid having to cut power to customers would stand at one in 12 in 2015/161.

With these figures in mind Asda Money looks at the loss, damage and inconvenience that power cuts can cause.

Loss of heat and electricity

Most modern homes are thoroughly dependent on gas and electricity for everyday tasks from washing to cooking. Power outages mean that households will be unable to operate as normal, cutting off access to central heating, hot water and the internet. While this will simply be a short-term inconvenience for some, this could be a particularly worrying time for vulnerable groups, such as the young and elderly, who may be more susceptible to the cold, or who may find it more difficult to access help when it is needed.

Food wastage

Power cuts also mean that any perishable food items stored in your fridge or freezer may spoil, depending on the length of outage, potentially leaving households out of pocket. Recent figures from the Office for National Statistics showed that the average household weekly spend on food is £54.802, meaning that consumers could be forced to outlay this amount or more on replacing their weekly shopping, depending on the size of their household.

Top tips for dealing with power cuts

  • Be prepared: Ensuring that you always have a supply of candles, torches, warm blankets and non-perishable food items to hand means that you will be better able to weather a power cut.
  • Know who to contact: Speaking to your neighbours in the first instance will help to identify if the power cut is restricted to your household or is something that is affecting your wider area. This will determine whether you need to contact your individual supplier or your local Distribution Network Operator (DNO), with details available on the National Grid's website.

Asda Home Insurance provides cover for freezer breaks down - including equipment and the food inside your freezer - up to £1,000. This also applies power cuts if they last long enough to damage your food3.

Notes to Editors

1. Ofgem report:

2. ONS stats 2011 (published 2012):


About Asda Home Insurance

  • Buildings and content cover from £188*
  • Home Emergency Cover included as standard
  • New for old replacement cover (exclusions apply)
  • Automatic 10% increase for wedding gift and Christmas cover

* Based on a sample of 2331 Asda customer profiles whose details have been checked against our new Asda Home Insurance product. 15% of these customers would have paid £188 or less. Source: RSA. The premium you pay will depend upon individual circumstances cover chosen and claim history.

Asda Money is a trading name of Asda Financial Services Limited. Asda Financial Services Limited uses a selection of companies to provide its products and services. Please refer to for details of our product partners and the relevant terms and conditions for each of our products and services.

Asda Home Insurance is a trading style of Asda Financial Services which is an Introducer Appointed Representative of Commercial Vehicle Direct Insurance Services Ltd, who are authorised and regulated by the Financial Services Authority (Firm reference No. 302216). Commercial Vehicle Direct Insurance Services Ltd registered in England and Wales number 04137311. Registered office: MMT Centre, Severn Bridge, Aust, Bristol BS35 4BL.

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