Thursday, December 21, 2006
Category:
Home Improvements
Research carried out by NOP, on behalf of Bradford & Bingley, has shown that over 9 million households are set to carry out home improvements this year.
With this in mind, Bradford & Bingley advise home owners to check their buildings and contents insurance after expensive refurbishments.
Stephen Hinbest, head of general insurance product development for Bradford & Bingley comments, “The national passion for DIY shows no signs of slowing. However, while concentrating on whether to add a bedroom, a bathroom or just improving what you already have, many people forget that they must alter their insurance accordingly. With billions expected to be spent across the country this year, there could be some expensive mistakes should people forget to address this.”
Some wanting to carry out home improvements may consider a further advance with their mortgage lender. They will then be informed that they must adjust their insurance cover accordingly. On the other hand, those taking out a personal loan or using savings they have built up may not think about insurance cover.
Hinbest continues, “With the high levels of house price inflation we have witnessed over the last few years, many people are preferring to improve their current home instead of trading up. Indeed, nearly half of those questioned are opting to improve rather than move this year. While adding an extra bedroom or building an extension can be an expensive business, you shouldn’t try and cut costs by scrimping on insurance. Having inadequate cover could end up costing you a whole lot more in the long run!”
“As well as reviewing your level of cover, you should also take the opportunity to review your premiums to see whether you’re getting a good deal. Shopping around or ringing a broker to do the searching for you, could save you a lot of money.”
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As an alternative to a further advance on their mortgage, one option individuals could consider, is a personal secured loan to finance their home improvements. Personal secured loans are available from £10,000 to £100,000, and can usually be repaid over a term of 5 to 25 years. From new
kitchens and bathrooms to garage conversions and larger scale extensions, a personal secured loan could provide the finances required to make those home improvement dreams a reality.
