A calculator which helps homeowners estimate the profit made after carrying out improvements to their property has been produced by GoCompare Home Insurance.
The Property Investment Calculator, which helps people work out how different projects or updates could add value to their home, is being promoted as GoCompare unveils the findings of a survey into home improvements.
In fact, giving homes a makeover is proving popular at the moment, as high property prices and uncertainty surrounding Brexit are preventing people from moving up the housing ladder.
Instead, homeowners are revamping their current dwellings, something which can have the dual benefit of making space work for their growing family or changing needs as well as adding value to improve its sales potential in the future.
Reasons for a revamp
A survey by GoCompare revealed 85% of homeowners have updated or improved their home in the last five years with interior redecoration, a bathroom refresh and replacing floors topping the list of work they carried out.
While the majority undertook the work in order to improve the general appearance of their home, or to simply upkeep the property and prevent it from falling into disrepair, nearly a quarter said they wanted to add value.
Indeed, for as many as 14% it made more sense to spruce up their current home than to move house. According to GoCompare the top 10 home improvements carried out in the last five years were:
| 1 | Interior redecoration | 46% |
| 2 | Installed a new bathroom | 27% |
| 3 | Replaced the flooring | 26% |
| 4 | A garden make-over | 24% |
| 5 | Installed a new kitchen | 24% |
| 6 | Installed a new boiler or central heating system | 24% |
| 7 | Installed new windows/double glazing | 19% |
| 8 | New shed or other garden building | 16% |
| 9 | Exterior redecoration | 13% |
| 10 | Improved the insulation | 11% |
Other improvements which were mentioned in the survey included adding a patio or garden decking, extending the property, knocking through rooms to create an open plan space and electrical rewiring.
When to tell your insurer
While you don’t need to inform your insurer if you are simply freshening up your home with a lick of paint or installing a new carpet, it’s worth being aware that some home improvements will need to be disclosed.
What’s more, any work which adds value to your home will need to be reported to your insurer. This is because buildings insurance is calculated on the rebuild cost of a property, therefore cover must be increased accordingly.
Ryan Fulthorpe, from GoCompare Home Insurance, said: “Unless you’ve specifically added cover, home insurance doesn’t cover accidental damage to your property or your belongings.
“So, if you accidentally knock over a tin of paint while redecorating or drill a hole through a water pipe while putting up shelves, you may not be covered unless you’ve bought the extra protection.
“As a rule, home insurance policies also don’t cover tradesmen or their work. So, before employing anyone, make sure they have their own insurance in place and check they’re qualified to carry out the work and are registered with a recognised governing body.”
Structural work will also need to be reported to your insurer as this could increase the risk of damage.
You can view the Property Investment Calculator by clicking here.
