February 5th 2024
New research from Lycetts reveals that more than three-quarters (76%) of homeowners say they are unlikely to sell up, and instead, would invest in their existing homes.
The double whammy of a depressed property market and the ongoing ‘cost of living’ crisis is behind the trend of renovating instead of relocating.
Home improvements can add thousands to a property’s value, however, significant losses risk being incurred if arrangements for adequate insurance cover are not in place.
It is therefore crucial to ensure appropriate protection.
Contract Works insurance policy: this can provide protection for the owner, the contractor, the property for the duration of the works, work in progress, building materials, hired-in plant equipment, liabilities, third parties and also offer optional non-negligence cover.
Minor improvements: activities such as plumbing may be covered by home insurance, but homeowners must inform their insurer of the start and completion dates of the work. If an insurer is unaware and there is a claim, it might not be paid out.
Structural works: this require specialist renovation insurance cover, but this varies, so it is important to seek expert advice. Contents cover, for example, may not be included, and this can prove extremely costly if roofs or ceilings collapse destroying valuable possessions.
Contractor’s liability insurance: there is a common misconception that this will be sufficient if anything goes wrong. This is not always the case, so it is vital that buildings insurance is reviewed, and updated where required, to ensure cover is in place for such works. Homeowners need to consider who is covering the property during the works, who is arranging cover on the works themselves and any associated liabilities.
Specialist renovation works policy: this normally includes cover if the contractor goes bust, or walks off the job before the renovation is complete, but it’s important to check. A half-renovated home may be uninhabitable, and while insurance cover for the site remains for a certain time, there will be unoccupancy conditions, such as property and security inspections.
Deciding to stay put and renovate can seem like a simple undertaking, but as can be seen, it’s a complex process.
If you do not currently have an insurance broker, but need help, please contact us and one of the team will be happy to help you.
We provide our clients with more than just insurance solutions.
Our experienced staff understand your needs.
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