The damage suffered in the recent riots is being estimated by insurance experts to cost more than a staggering £200m and the destruction to homes and businesses has highlighted again the need for decent insurance cover.

With hard economic times squeezing the family budget it may be tempting to cut back on insurances, but this could prove to be a costly mistake.

Research* has revealed that over five million households are not saving enough money and 1.1 million have savings under £1,000, leaving them exposed when faced with unexpected expenditure. This can be particularly difficult for the self-employed, but at least those business owners with income protection insurance cover have comfort in the knowledge that they will receive a regular income if they are not able to work due to accident or illness.

It may be the unexpected that has the most impact but often it doesn’t have to be a serious issue to have serious financial consequences – even a bout of flu can leave you incapacitated for a few weeks. For the employed, wages are covered by the employer, but what happens if you’re self-employed?

Thankfully, self-employed income protection insurance cover is designed for such circumstances and policy holders can relax knowing that an umbrella will be there when that rainy day comes. * Financial Inclusion Centre