In the first quarter of 2004 claims were already 13 per cent higher than in the corresponding period for

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In the first quarter of 2004, claims were already 13 per cent higher than in the corresponding period for 2003, despite the establishment of a National Mobile Phone Crime Unit and industry measures to (finally) prevent the use of stolen mobiles.While both insurers have something to gain by frightening customers into taking out cover, there is a serious point here. If you didn't have insurance, you would feel a lot worse.Halifax General Insurance also warned last week that mobile phone theft is still rising. Partly that's because the true cost of last year's claims is only now being confirmed since it normally takes six to nine months to determine whether the damage is permanent.Bad subsidence can be devastating, even if you have buildings and home contents cover, particularly if you have to move out for several weeks while repair work is carried out. But lack of insurance is no laughing matter, even in this country where we have less of a claims culture than in the US.

Insurance can seem like a waste of money unless you have to make a claim, and with premiums rising every year, it can be tempting to cut back on cover to save cash.But such a move could prove short-sighted if you are the victim of theft or have an accident. She declared she would sue, leaving him hugging his expensive coffee table and squashy designer sofa in desperation, pleading with her to have mercy and let him keep his things.She did back down eventually and Frasier escaped an expensive lawsuit. Convinced she would sue him, given her line of work, and realising that he had no cover, Frasier tried to keep her sweet by asking her to stay for a few days to recuperate.The best bit was when she found out that this fear of litigation, rather than romance, was the reason Frasier was being so nice. Frasier usually generates a laugh or two chez Bien and last week's episode of the Channel 4 show was no exception. Unfortunately, this awful woman - who had been on an unsuccessful date with Frasier in the past - slipped on a dollop of mayonnaise that his father Martin had dropped on the floor and broke her leg. This gives a current pay rate of 4.5 per cent and has a £550 arrangement fee.. There is a £299 arrangement fee.Abbey also offers a flexible "lifetime tracker" loan at 0.5 per cent above base rate.

"Your saving on cheaper monthly payments will be better than [Abbey's] cashback. You have to ask: 'Can a cheaper deal be found?' The answer is yes."For example, he cites a two-year tracker at 3.95 per cent with Alliance & Leicester, offered by mortgage broker Charcol and The MarketPlace. There are no redemption penalties and valuation fees are refunded.Calculating the monthly savings over two years on a £100,000 mortgage compared to the 1 per cent cashback, you would be nearly £1,600 better off not taking the Abbey deal, he says.Jane Harrison, marketing director at broker London & Country, says: "It's almost like fool's gold. The rate is terribly poor and there are better deals from Abbey itself." She points to its two-year tracker mortgage, which offers the base rate minus 0.06 per cent - giving a payable rate of 3.94 per cent. "His mortgage is fixed for four years, so if he did want to free up any of the equity and change his provider, he could be subject to hefty redemption fees."ProtectionMs Gee is concerned about Mark's lack of insurance. And, if he wants to buy another property to rent out, he must also investigate property prices to find out how much he needs to borrow.However, Ms Gee reckons it would be madness to invest all his capital in bricks and mortar without building up an emergency savings account.Mr McDermott points out that Mark has "a good level of equity" in his property which he can tap into at a later date if, for example, he needs the cash for home improvements."Remortgaging is a simple process but I recommend a qualified mortgage adviser [to handle this]," he says. He can reduce this by transferring his £300 balance to a provider offering 0 per cent interest for an introductory period of six months or so.

This should give him time to chip away at the debt, not just pay the interest.Savings/investments"Saving seems to me to be more of a priority than a second mortgage," says Jennifer Storrow, managing director at IFA Gee & Company. "He should start putting £50 a month into a mini cash ISA; now that Mark is a house owner, there will always be money needed for repairs and maintenance."Mr McDermott picks up on this need for rainy-day cash. "A pot of about £1,000 would be an appropriate and realistic goal for Mark," he says. "He could try the Intelligent Finance mini cash ISA, paying 4.6 per cent interest tax-free, or look at ING Direct's savings account, paying 4.41 per cent."He suggests Mark could even consider a stocks and shares ISA: "Markets have recovered in the past year, and equity ISAs remain an attractive long-term investment vehicle." He recommends the Cazenove UK Growth & Income and Liontrust First Income funds.PropertyConverting his current house to a buy-to-let mortgage is a possibility, says Ms Storrow, but it is "an ambitious project".Mark would need to carry out detailed research into the Northampton area to find out what rental income he could expect. The interest on his student loan will be low, so he should continue to pay £30 a month. He could increase this to £50, if he can afford it, to reduce the debt more quickly.The rate of interest on his Capital One credit card is 13.2 per cent. He has taken out a repayment mortgage with the Nationwide building society on a four-year fix at 4.45 per cent; this works out at about £450 a month.