When undertaking a home renovation project, people often forget to review their insurance needs, too. Whether your renovation is large or small, undertaking this work means you are both adding to the value of your home and increasing your exposure to risk. To help ensure that your project goes smoothly and that you have the appropriate cover you need, Natasha Root, Private Client Insurance Executive, explains a number of useful points to bear in mind.
Home renovations can be a daunting undertaking, although the rewards, both aesthetic and financial can be considerable. However, before you or the contractors raise any tools to begin renovations, you should review your home insurance policy. The reason for this is that your policy may not cover renovations, which means that any damages that occur during the process may not be covered.
In fact, 90 per cent of homeowners are unaware that not only do they need to advise their home insurer of any potential building works, but that if they were to carry out the works, their policy may automatically be invalidated.
When you alert your home insurer of your impending renovations, you must also specify whether you (the homeowner) are the one managing the renovations or if they are being handled by contractors. What kind of insurance you need will depend on who is responsible for the renovations, however, regardless of who is conducting the renovations, you should provide your home insurer with the following information:
- The timescale for the work—including a start and end date
- The cost of the project
- A thorough outline of the project
- Names of the individuals conducting the renovations
In addition to contacting your home insurance provider, there are several pieces of general guidance to consider before you begin your home renovation:
- Set a hard budget
- Research contractors and obtain multiple quotes
- Organise a storage plan for your furniture and possessions
- Install temporary security devices—such as locks
83% of UK properties are underinsured. This will severely reduce the amount paid to you following a property damage claim.
On average underinsured buildings are covered for only 66% of the amount they should be, and Zoopla data for homes with a market value exceeding £1 million suggests approximately 610,000 high-value homes in Britain are currently underinsured.
13% of UK properties are overinsured, meaning the homeowner is paying on average 132% of the correct amount for their insurance.
Remember to ensure your property is insured accurately – over 9 out of 10 UK buildings are insured for the wrong amount*.
For more information on property insurance, get in touch with Natasha or one of the insurance team by calling 0330 058 6559 or email firstname.lastname@example.org
*Data derived from 26,861 valuations by RebuildCostAssessment.com between September 2021 and August 2022