House price drop
House prices have officially reached their lowest level in 10 years. New analysis from Nationwide shows that in May, the average cost of a home dropped by 1.7% month-on-month. This makes it the sharpest decline since the depths of the financial crisis in February 2009.
Before Covid-19 the housing market had been gradually gaining momentum. However a mixture of behavioural changes and social distancing has unsurprisingly resulted in a sharp reversal in this trend. Many potential buyers have simply paused their property searches as a result of the uncertainty.
Looking ahead, experts predict the future household market remains largely uncertain. The availability of even cheaper mortgage deals and new job retention schemes should boost both the economy and housing market. On the other hand, the huge blow in household finances resulting from Covid-19 means consumer confidence will inevitably remain low for the considerable future.
DIY during Lockdown and impact on your home insurance
Lockdown has provided an excellent opportunity for people to make improvements to their home. With builders and tradesman also more difficult to come by, DIY projects have become very popular.
If you are thinking of carrying out your own DIY projects, we recommend considering accidental damage insurance, if this is not already included on your policy. This can help protect you from those one-off accidents which can happen when tackling DIY tasks, such as a nail through a pipe or spilled paint on a carpet.
If you are planning on more extensive renovations, it will be worth checking whether you need to increase their buildings or contents insurance in light of the work. For more major improvements, it is important to notify your insurance provider of the work regardless. This will avoid the risk of your policy being invalidated in the unfortunate event that you needed to make a claim.
It is possible there could be different restrictions placed on your cover, depending on the work taking place. You may well be fine to proceed, however it’s worth checking to be sure. You will also need to notify your insurer if you’re planning to leave your property for more than 30 days whilst work is taking place.
If you are planning to have builders in to do the job for you, legal cover is beneficial if you were to have problems with the builders completing the job. In addition, if the construction company was to go bust after failing to complete the work, legal cover could help you reclaim your money.
It is worth noting that poor or faulty workmanship isn’t usually covered under a home insurance policy. In this case, any claims made for damage caused by poor workmanship may not be eligible for compensation. So no matter how big or small the job, consider whether you have the skills to carry out the job efficiently first!
How can I save on my home insurance?
Our Home Insurance is negotiated with many of the UK’s leading insurers. This includes RSA, Zurich, Aviva, AXA, and Ageas to name a few. Cover can therefore be completely tailored to suit your needs at the best possible price!
We continuously review our best deals and can quote for buildings and contents cover or buildings and or contents separately.
To find out about our wide range of competitive home insurance cover please click here
For further advice please call us on 0345 017 9795 and one of our friendly advisors will be on hand ready to help.