Of those who have built extensions, for example, some 52% have not informed their insurer, potentially leaving up to one in three with an invalid insurance policy, says the research from uSwitch.
With the average home owner forking out £15,000 on home improvements, the firm says that they should check their policies to make sure the improvement are covered and up their insurance if necessary.
It reckons that 30% have insurance policies are risk of being invalid because of work carried out that has not been verified with insurance companies as most buildings insurance policies are based on the structure of the house as it stands when the policy is taken out. So adding a new room or knocking through a load bearing wall could significantly affect the terms of the cover.
It means that many policies could become invalid when the house is significantly altered, such as after an extension, a loft or garage conversion or even adding a new bathroom. Despite this, only 17% of home owners check their insurance policy and contact their provider before work begins.
The research also reveals that consumers are failing to adequately protect their homes when the work is actually being carried out. Some 43% did not take steps to arrange extra cover for accidental damage to possessions or the increased security risk of open walls or removing doors and window.
The research also found that 49% failed to check whether their tradesman was certified, leaving themselves open to being short changed and 71% prefer to pay contractors in cash whenever possible but with no paper trail, home owners will be left exposed if the job is not completed as promised.
‘We a nation gripped by extension fever, with many people deciding to create more space in their existing home rather than move. But, with all the emotional and financial challenges of building work, home insurance is often the last thing on your mind. It's absolutely vital to get in touch with your insurer before you start on any home improvement project to see how it will affect your policy,’ said Michael Ossei, personal finance expert at uSwitch.
‘If you are extending your home you are likely to be increasing the rebuild cost so you will need to make sure this is updated with your insurer. You might need to buy specialist insurance if your home has been built in an unusual way such as if it has timber frames or another non-standard feature. Plus, if any external windows, doors or walls are removed during building work, you will be more vulnerable to burglaries, so you also need to make sure you are covered for this,’ he explained.
‘It is also important to make sure the builders have public liability insurance to cover any accidental damage that happens during the work. With almost half of home owners borrowing money in order to fund their building projects the last thing you want is to get into extra debt if something goes wrong,’ he added.
