You are here: Home - News -

Home improvers failing to increase insurance levels

  • 26/02/2002
  • 0
Thousands of homeowners could be under-insured, according to Halifax, which has noted a surge in peo...

Thousands of homeowners could be under-insured, according to Halifax, which has noted a surge in people renovating properties as opposed to moving home.

Halifax said as homeowners renovate their properties they are failing to upgrade their household insurance. But it is not only household cover which needs to be increased. Other forms of mortgage protection must also be reviewed.

Nick Kirwan, product development manager at Scottish Provident, said: ‘It is better to be over-insured than under-insured ‘ for an extra couple of pounds it is very sensible.’

Scottish Provident recently completed a survey in association with MORI asking those who had increased their flexible mortgage whether they had increased their insurance.

Kirwan said: ‘A third of those surveyed had not increased their insurance, 64% said they had, but it still shows it is important for people to think about insurance. People have an over-inflated view of what the State will provide.’

The survey also showed 77% of people do not actually have mortgage payment protection insurance and when Scottish Provident compiled an identical survey two years ago, the level of penetration was the same.

‘This shows no improvement and proves the message has not been passed on,’ Kirwan said.

Halifax says property price inflation has outstripped building cost inflation by an average of 3% per year for the last five years, which shows improving your home is cheaper than buying a new property.

Howard Posner, managing director at Halifax General Insurance, added: ‘In this climate, it is essential that home insurance cover keeps pace with changing properties.’


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Raising the roof

Remortgaging may still be the word on everyone's lips, but if homeowners want to raise finance it is worth considering...