Many home insurance policyholders may be shelling out for expensive home improvement jobs in the mistaken belief they will significantly increase property values, according to a new financing study.
Research from GE Money Home Lending has suggested the design change that most homeowners think will improve the value of their house is adding a new kitchen, followed by installing a new bathroom.
In both cases, DIYers may be forced to upgrade their home insurance deal to cover the changes.
However, in a simultaneous survey of estate agents, it has been revealed that a loft conversion actually adds the greatest value to a home, followed by adding an extension.
Commenting, Giacomo Gigantiello, unsecured loans sales leader at GE Money Home Lending, remarked: “Homeowners planning improvements to their homes this summer to specifically increase the value of their property could be missing out the most valuable additions.”
Home insurance customers looking to cut their bills after undertaking a costly home improvement programme may wish to consider arranging home contents insurance and building insurance cover from the same provider.
Some home insurance providers offer discounts for combined home contents and building insurance packages.