Home Insurance Needs

Home renovation and remodelling is a great way to give your property a new lease of life. Whether you're hoping to sell the home and want to add to its value or you're planning to stay put and simply want a new look or a new room to enjoy, a remodelling project could be the key to giving your house a refreshing new perspective.

What to consider when decorating your home

Given the global economic crisis and the fact that house prices have plummeted since 2008, it's important to pick your renovation and decorating projects carefully if you're looking to add value to a property. Money is tight and so you don't want to splash the cash on a project that will offer little return. Here are some tips:

Don't go overboard

Don't spend beyond your means and expect the house to sell immediately as a result of your improvements. With the housing market reeling, adding value to a home could even price some buyers out of the market.

Decorate to accumulate

Think about small cosmetic changes that make a big difference such as a new coat of paint and a new carpet.

Space is everything

Don't build a new room with a specific purpose. Creating space is attractive to buyers but they may not want to use a room in the same way as you.

Ups and downs

Converting a loft or basement can be expensive but will nearly always offer large returns. A typical loft conversion costs around £23,000 but can add up to £100,000 on to the value of a property.

Don't try to second guess

Don't expect to know what the buyer wants no matter how many decorating magazines you read. Keep things versatile and focus on adding space and light.

How alterations affect your home insurance

If you're undertaking an elaborate project such as adding a room or redesigning a kitchen or bathroom, then make sure your home insurance provider is informed as changes to your policy will be necessary.

Firstly, before beginning any work, make sure you are covered for the project itself. For example, if you're undertaking a DIY project you will need accidental damage cover to protect you against paint spills and breakages. If you have a friend assisting you with the project you should also check that you have liability cover for any injuries that may occur. You should also check that the contents aspect of your policy is up to date with any new items that have recently been brought into the home.

If your project is extensive then you will need to contact your home insurance provider ahead of time. Structural changes may not be covered under the terms of your policy so you should always check first.

Once the work is complete you will need to adjust the rebuild value of your home. Improvements such as loft and basement conversions will significantly increase not only the home's retail value but its rebuild cost too. So make sure you adjust your buildings insurance to reflect this change. Also ensure that you increase the limit on your contents insurance for any new items such as new appliances in a remodelled kitchen or furniture in a new room.

If you're not happy with the level of cover from your existing home insurance provider shop around for a new home insurance policy online - you may be able to find a more extensive policy for a lower premium if you use a comparison website.

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