Insurance risks associated with home improvements

Posted 2007-10-15

Financial services provider to 50s+ age group, Saga, has issued financial cautions regarding certain home improvements to their members. 

The industry body wants Britons to be aware that possessions such as flat-pack kitchen units are not usually covered by insurance policies.

For individuals seeking to obtain a home loan to finance renovations, an extended insurance policy to cover new purchases could ensure that their money would not be lost if goods became damaged or stolen.

Research by Saga also found that 1/3rd of Britons expect their do-it-yourself (DIY) projects to need further upgrading in as little as five years’ time.

However, among the 50s+ age group, the proportion fell to 23%, indicating that the elder group could make use of home loans with longer repayment schedules.

Previous research from Saga indicated that approximately one in five people use equity from their property for home improvements and about 12% of individuals use their equity to clear the remaining balance on their home mortgage.

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