How the mantra of “improve, don’t move” affect your home insurance
We are a nation of property enthusiasts and in regards to home improvements, we splurge an absolute fortune. As the price of purchasing a bigger and luxurious property rises, and the costs and hassle associated with moving becomes unreasonable, the mantra of the majority has become “improve, don’t move”.
Don’t let improvements nullify your home insurance
What many property owners do not understand is that they could be annulling their home cover by making improvements. If significant building work such as erecting a conservatory or converting a loft into a spare bedroom is not carried out appropriately, following all the required regulations, or the insurance firm is not notified so that the policy stipulations can be adjusted, then your policy may happen to be null and void.
Home insurance cover is based on a building at the time the insurance is taken out; therefore, it stands to explain that, an improvement to the structure implies that any existing policy may no longer exist.
Moreover, content cover may also be termed as invalid if a claim for damage to possessions or loss of property happens in a room an insurance company didn’t know existed.
What you really should know
Failing to notify the insurance company is a reasonable mistake to make since there is a lot to take care of when having builders in. However, to prevent what could turn out to be a costly blunder, here are some major points to remember.
- Notify your home insurance company, prior to commencing any improvement task
- Be very clear about precisely what work will be completed. Your insurance company should direct you if there is a need to raise your cover for the period the exercise is taking place.
- Extensions will raise the value of your property in the event damage occurs. As your home cover is still based on the initial appraisal of the building before an extension was built, the amount insured may need to be increased.
- Furthermore, any content cover you own may need extra care during the building period. You may consider an accidental damage to your plan to allow for any errors by the builders who will be in your home.
- Moving out while improvements are going on might also have an effect on any claim you make. Your insurance company will advise you for how long your cover allows you to be absent from your home before the cover becomes null.