Home Owners Risk Invalidating Insurance Policies

Home Owners Risk Invalidating Insurance Policies

Like all companies, firms operating in the insurance sector need access to suitable technology. These days, companies’ operations can quickly grind to a halt if their IT systems fail. Ultimately, this is bad news for their reputations and their bottom lines.

Thankfully for enterprises, it is now simple to access the relevant insurance technology. As long as they know where to look, bosses can take advantage of top-quality insurance software that perfectly suits their needs.

Although getting hold of the right insurance IT solutions may require a little investment, this should prove to be money well spent.

Meanwhile, in news that may affect certain insurance providers, it has been revealed that many UK homes are inadequately covered. According to research conducted by uSwitch.com, a considerable number of homeowners have conducted major renovations to their abodes without informing their cover providers.

It found that 90 per cent of homeowners in Britain have enhanced their properties over the last five years and, of these, 58 per cent have extended their houses by converting lofts, adding garages, building new bathrooms and so on.

However, more than half of these consumers (52 per cent) had failed to inform their insurers. According to uSwitch.com, this means that as many as one in three consumers may have an invalid insurance policy.

The price comparison site noted that most buildings insurance policies are based on the structure of properties when the cover is taken out. Therefore, adding new rooms or knocking through load-bearing walls could significantly affect the terms of the cover.

Commenting on the issue, personal finance expert at the firm Michael Ossei said: “We are 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.

“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.”

Bearing in mind the potentially serious consequences if people lack the relevant cover, vigilance is crucial. It is only by paying attention to the small print of their policies and making sure they keep their cover providers in the loop when they engage in improvement projects that homeowners can protect their finances.

Given the fact that real estate tends to be the most valuable thing people own, in many cases by some considerable margin, this is not an issue people can afford to ignore.