Protection news

Invalid insurance risk for renovators

2 February 2008

Halifax Home Insurance revealed that over the past five years nearly three million rooms had ‘disappeared’, as home owners knocked down walls to satisfy their desire for open-plan living.

The research also showed that 44 per cent of households failed to inform their insurer that they had knocked down an interior wall, while over two million households expected to renovate their property this year.

As a result of the desire for open-plan living Halifax admitted that 25 per cent of householders were risking invalidating their insurance by making changes to their property without informing their insurers.

David Rochester, head of underwriting at Halifax Home Insurance, commented: “Britons have clearly fallen for open-plan living and are looking at ways in which they can make better use of the space inside their homes”

However, Rochester urged caution when undertaking structural alterations. He added: “Any damage to a weight-bearing wall that results in ceiling collapse or other damage could invalidate a buildings insurance policy.”

Martin Wade, director of Mortgage Options, said: “If people are doing something of a structural nature, they should make sure that all that is removed is covered by their insurance.

"For the vast majority of people, it wouldn’t enter their head. If an insurer is going to use something to invalidate a policy, they need to be very open and upfront with their customers so they aren’t unwittingly invalidating their insurance policy.”