Room for Improvement
Room for Improvement
Adding an extra bedroom, converting the loft or garage into
living space, building a conservatory or installing a new kitchen
or bathroom are all ways in which you are likely to increase the
value of your property. Not only that, the additional space and
facilities these improvements offer are bound to make a welcome
difference to your daily family living.
Due to the current economic climate and the uncertainty in the
property market, many home-owners are deciding against selling
their properties. Instead of the strong possibility of having to
sell at a reduced price and then incurring all the expenses of
moving, they are opting to stay where they are and improve their
existing home. And for good reason as, according to new research by
Nationwide Building Society, adding an extension or a loft
conversion could increase its value by almost a quarter. Its House
Price Index Special Report investigated the additional value of
improvements carried out to an average three-bedroom house. This
revealed that creating an extra bathroom adds 6% to the value of
the average home; an extra double bedroom raises the value by 12%;
while building an extension or converting the loft to create a
double bedroom and en suite bathroom adds a staggering 23%. What's
more, if you live in an urban area and don't have a garage,
building one on to your property could see its value soar by 15%
advises Buy Association UK.
It's little wonder then that recent statistics from Halifax show
that more than 50 per cent of all British homeowners have been
carrying out improvements to their existing homes over the last
year. Many are hoping that playing the waiting game will pay
dividends once the property market levels off and slowly starts to
recover. In the meantime they can reap the benefits of all that
extra space and comfort, not to mention being the envy of their
neighbours.
If you decide to follow this route, once you have the necessary
planning permission in place and before your builders start work,
you must inform your property
insurance company of your proposed changes to the
property. It's important that your insurer knows when the building
work is due to commence, exactly what it entails and how much it is
expected to cost as it may well affect the cover available to you.
Once your insurer is aware of all these facts the company can
advise as to any necessary changes to the terms and conditions of
your existing policy.
If you are having major structural work carried out such as
building a whole new extension or your property is undergoing an
extensive refurbishment, you may have no choice but to vacate for a
while. Your home would then be classified as an 'Unoccupied
Property' for insurance purposes and be subject to the associated
risks. Depending on your insurance company's underwriting criteria,
the longest period most insurers would allow a property to be
unoccupied as part of an existing policy would be six months.
Normally the property will be placed on an 'Unoccupied Insurance Scheme' as soon as the work
has started and the occupants have moved out. If you are looking to
take out a new policy on the property undergoing improvement, your
insurer will need to assess all the circumstances carefully before
offering the relevant cover.
Once all the work is finished and you are safely installed back
in your home it may be as well to update your contents insurance
too. Naturally, extra rooms call for extra furnishings, appliances
and other household items and these can all add up at a quite
alarming rate. A quick phone call to your contents insurer will
clarify the sum for which you are covered and whether it needs to
be increased.
