12th October 2021
As a result of the pandemic, we have spent more time at home than ever before. During the full lockdowns, most of us were confined to our homes for the vast majority of the day and, even now restrictions have been lifted, millions are still working from home at least some of the time, so having a suitable ‘home office’ has never been more important.
For many - especially those living in cities who no longer have to ‘go to work’ - buying a bigger house in a cheaper area is the answer; data from Hamptons reveals that in the first half of 2021, homes bought by Londoners outside the capital were up 85% on the same period in 2019*.
But for most people, making improvements to their current home is a much cheaper and more practical solution, so it is perhaps no surprise that 46% of homeowners across the UK undertook a home improvement project last year, more than a quarter (27%) of which were renovations or extensions**.
However, despite the fact millions of homeowners have completed work on their properties in the past year, very few realise that if you don’t tell your insurer that the work is being done, it could invalidate your insurance. This is because there is an increased risk of something happening to a home if it is being renovated - accidents, structural damage, theft if it is not secure etc - and whether the owner continues to live there while the work is being done or not, it is likely that their existing insurance won’t cover any claims.
And even once the work is done, there is no guarantee the insurance will be sufficient - extensions and other structural alterations can affect the rebuild cost of the home as well as the contents value, so this could also invalidate any existing policy.
As an adviser, you may not be aware that a client is having work done to their home, but if they come to you to organise a mortgage extension to fund it, you have a great opportunity to add value by also helping them ensure their home is protected. It is also worth speaking to clients about their plans, as 51% of homeowners are planning to enhance their homes this year**.
Many insurance policies don’t cover renovations, so it is best to get in touch with a specialist.
At Ceta, we are experts in non-standard insurance. Our partnerships with specialist third-party insurers mean that more than 90% of non-standard risks can be managed and secured with ease, speed and reassurance. Via our Infinity platform you can get quotes in less than two minutes and monitor everything on our live dashboard, while our dedicated, expert support teams are on hand to answer any queries.
So, if your client is currently having work done on their home - or planning to in the future - they can renovate with confidence knowing it is protected with Infinity. From extensive works to redecorating, we have got it covered.
If you’re a broker or an adviser looking for an easy way to find your clients the right cover, you can find out more or sign up to the Infinity platform here.
* https://www.hamptons.co.uk/research/articles/london-buyers-fuel-markets-outside-the-capital/
** https://www.ratedpeople.com/sp-assets/rated-people-home-improvement-trends-report-2021.pdf