To move or to improve, insurance advice for home owners
The property market post lockdown
There has been much focus in recent months on the surge in residential sales with the property market experiencing a mini boom, mostly due to the Government’s temporary cut in stamp duty which continues until June 30th 2021.
Many homeowners will be using the decrease in stamp duty to move to a higher valued home or looking to purchase a second home. Ian McKenzie, chief executive of The Guild of Property Professionals, said: “Approximately 1 million people in the UK, which equates to around 4% of all households, have turned their dream into a reality and own a second property." McKenzie attributed the government’s announcement on stamp duty as a driving force. ²
Insurance considerations when buying a new/second home
- Contact your insurance provider well in advance of expected exchange date to discuss your requirements and arrange the correct cover
- Check existing home remains protected while you remain responsible for it
- Second home properties – you will need an additional policy for a second home and there will be additional risks attached which will require specialist cover.
Whether purchasing a second home or a higher value property we advise seeking a high value home insurance policy that offers you the protection you need, at PIB Insurance Brokers, our dedicated insurance specialists will work with you to find an insurance solution for your bespoke requirements.
An increase in home improvements
The UK has also witnessed an increase in home improvement activity with reports of over 61,000 planning applications made during the 13 weeks of the first lockdown, as the nation stayed at home it provided an opportunity to start home improvement projects.
If all planning permission work is completed it would add more than 1.5 million square meters of space to Britain’s existing housing stock, an equivalent of 214 football pitches.
According to a recent article by Santander¹, analysis of local authority planning applications, compiled by construction industry analysts Barbour ABI, homeowners submitted plans this year to extend their homes by an average of 24.875 sq metres each. The combined total cost of this work is an estimated £1.9 billion pounds.
Santander also reported that despite the uncertainty brought by COVID-19, and a lot of people now looking to move property, it seems Britain remains home to a community of improvers, who have ploughed ahead with working on their property. Research among more than 2,000 UK homeowners, suggested that for two in five (40%), the pandemic accelerated home improvement plans and inspired future projects both small and large. Reports also suggest that over a 1/3 of Brits (29%) are continuing to plan home improvements in 2021.
The impact on your insurance policy
Many homeowners do not realise that building works can impact and possibly invalidate their insurance policy.
If you plan to have any renovation work carried out on your home, no matter how small, you should inform your insurers of the work which is to be carried out so specialist cover can be put in place. PIB Insurance Brokers private client team can guide and assist this process, sourcing a specialist bespoke policy to ensure you have the correct level of cover required for your home improvements.
We’re here to help
As we continue with another Lockdown, many homeowners will be looking to continue home improvements or move to a new house. If you would like further insurance advice and support during this process, please get in touch with one of our private client specialists.