There is a lot to consider when building an extension. Architectural drawings, budgets, contracts, materials, party wall notices and building regulations all need to be addressed. Insurance is often an afterthought and that could be a problem.
Your standard home insurance may not cover your property during construction work. During an extension build, your home may be undergoing major structural alterations, be left unattended at night, and be less secure with scaffolding up against the property. The risks are significantly different and could make your home insurance invalid. So, it is critical that you check with your insurer and take out any additional insurance required before you start any work.
How does insurance protect you when building an extension?
During construction, you may be moving walls, adding RSJs for support, and temporarily removing parts of the roof. Contractors may be on site every day and you could be away from the property for weeks or months.
The right insurance cover can help protect the existing property, the new works, and sometimes the contents if they are damaged during construction or when being moved offsite. The key is in the details, and there are specialised building works policies you can take out if required.
How does building an extension affect my home insurance premiums?
Structural alterations, scaffolding, contractor access, and long periods of unattendance are considered to be additional risks by most insurers.
If you plan to continue with your current policy, your premiums may increase for the duration of the work and may increase your excess. Some home insurers will not amend your policy and instead will ask you to take out a separate policy to cover the additional risks.
Once the extension is complete, the rebuild cost of the property will generally be higher with the additional square footage, glazing, and finishes and this can also impact your premiums.
Should I tell my insurance provider about my extension?
Yes. If you are planning on making any major changes to your property you should always inform your insurance provider in advance to make sure your policy is valid so that you are covered should anything go wrong.
Failing to disclose any alterations before the work commences could invalidate your insurance and cause problems if you need to make a claim.
Will my builder’s insurance cover the work?
All reputable contractors will have public liability insurance, employers’ liability insurance, and generally contract works insurance as well. And it is important to check their cover yourself before you commit to using them for the project.
Their insurance can help to cover any injury claims, accidental damage caused by the builder, or loss relating to the works and materials. However, the builder’s insurance may not fully protect the existing property or its contents should something go wrong.
The builder’s insurance should therefore be seen as additional cover for the works and not as an alternative to taking out your own insurance.
What does home renovation and extension insurance cover?
Exactly what is covered and the maximum value for each section varies by provider and policy, but specialist renovation and extension insurance can cover:
- The existing structure of your property
- Contents in the house or temporary storage
- The extension works in progress
- Materials stored on site
- Public liability linked to the project
- Alternative accommodation if the property becomes uninhabitable
- Periods when the home is unoccupied during the build
It also helps to keep contracts, invoices, proof of your builder’s insurance, and completion paperwork together.
Conclusion
Insurance should always be organised before any work begins. You should inform your current insurer what you have planned, who you have contracted to carry out the works, and take out any additional insurance you might need. You should also ask your builder for proof of their cover. You should be certain there are no gaps in the coverage or the timeline.
Once the works are completed, be sure to update your insurer with the details of the extension so that any policies can reflect the new and updated property.
It helps to stay organised and keep any documentation around planning permission, regulations, contracts, invoices, proof of your builder’s insurance, and completion paperwork together in case you ever need to reply upon them. And do not keep these documents at the property during the works or make sure you have copies elsewhere.
If you are looking to extend your London property, Good London Builders can help you with the project from the original designs through to finding the right contractors, and keeping the build on track and within budget from start to finish. Contact us online or call us on 0207 978 5097.
