Do you have adequate home insurance?
In recent years, home renovations have become a major trend among homeowners. These range from small DIY projects to completely refitting a house or many rooms in order for people to put a personal stamp on their home without having to rebuild. 68% of these homeowners are planning on renovating their homes within the next 12 months.
However, issues around rising costs and the availability of tradespeople may preclude some people from doing so.
New research from insurance provider Aviva Insurance Ireland DAC (Aviva) has found that, although Irish people have always had a love affair with their home, many homeowners do not accurately reflect the value of their home in their insurance. This could leave them in a difficult financial position if they need to make a claim on their home insurance policy.
Highlights from Aviva’s survey conducted by iReach Insights include:
Almost 4 in 10 people never review the rebuilding costs of their home.
Also, nearly half of those in the 25–44 year age group (46%) say they never review their cover compared to just 31% of those aged over 55.
Less than 2 in 10 can be sure their sum insured is an accurate reflection of their home’s rebuild cost having undergone a review in the last 12 months for insurance purposes.
Billy Shannon of Aviva said: "A stand-out finding from our survey, was how few people have actually reviewed their rebuild cost in the last year. In addition, 38% of homeowners never review their rebuilding costs when paying for their home insurance. We would always recommend that homeowners review their cover on an annual basis", concluded Billy Shannon.
So if you want the safety of home insurance on your newly renovated house, make sure to adequately review your building costs and value your home correctly to save you financial hassle down the line.