Thursday 8 May 2014

Home improvement, part 4: How home improvement can affect your home insurance

Welcome to the final part of our series on home improvements; we’ve already looked at making the most of your loft, garage and building a conservatory.


Large or small scale home improvements can have an impact on your home insurance policy, and being open and honest with your insurance provider is an important part of the process to ensure that your home continues to be covered.  Some of the details they may ask you for may surprise you.

In some instances, for example, you may need to name the builder and his workmen on your insurance whilst the work is being completed. In this article, we’ll look at some of the potential improvements you could make to your home and what you need to tell your insurer.

Loft conversion
If you’re considering making alterations to your home to give you and your family more space and to add value to your property, one option would be a loft conversion. In under than three months you could have another bedroom and possibly a bathroom in your home which, according to some property specialists, can add up to 12.5% of the value of the property onto any future valuation.

Also, you don’t usually have to go through the same rigmarole as you would if you were extending the exterior of your home, as a loft conversion is classed as a permitted development.

If you have to move out temporarily
If you’re looking to make improvements to your home in another way and find you have to move out for the work to be done, if you’re out of the property for 30 days or more this could render your home insurance policy invalid. The message is clear; you need to check with your insurer no matter what you’re doing.

Your insurer is within their right to ask you, if you are undertaking home improvements and have the workmen in, to take certain precautions as well. If you don’t follow their advice and then need to claim – your insurance could be void.

Kitchen and bathroom renovation
Other home improvements that can add value to your home include renovating your kitchen or bathroom. These can sometimes even pay for themselves when you consider about how much they might add to the value of your property, and generally won’t affect your insurance.

Make sure that you inform your insurer that you are undertaking work in your home, though, otherwise you might not be covered for any accidental damage such as knocking down a supporting wall. Also, you may have to pay a higher premium on your contents insurance for expensive new cabinets and furnishings.

Solar panels
Adding
solar panels to your home can be cost-effective and environmentally friendly. Solar panels are valuable, however, and could add value to your home and therefore affect your home insurance. This could affect the amount you pay out if you did need to claim. While they are being installed, your insurer may want to increase your monthly premium to cover any potential costs that could be incurred if any damage to your roof or other part of your home is damaged accidentally in the process.

Keeping your insurer informed
Most people understand that their insurer should be informed of what is to be undertaken, but the finer details of how and who will undertake a home improvement project is also relevant.

Ensure you are open and detailed with your insurer about your plans so that in the event of a claim, you’re covered for every eventuality and aren’t caught out because you’ve neglected to mention an important detail. If you are lucky enough to ensure with MORE TH>N, make sure you contact us to let us know if your exciting plans!


Image credit – kitchen by rogue-designs on Flickr

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