Home extensions 'can push premiums up'
Published On 1 December 2007
Adding an extension to a house may help to boost the value of the property, but it is also likely to mean higher home insurance premiums.Alan Tovey, director of the Basement Information Centre, warned home improvers that not only is it vital to ensure anyone working on the property is covered by insurance, but that premiums are likely to be higher when the work is finished.
"The price of your home insurance will go up - exactly the same as if you put an extension on, because you're increasing the value of the property," he said.
A recent report from Halifax suggested that 25 per cent of homeowners carry out improvements in order to boost property value, with new extensions and kitchens offering the highest increases.
If a basement conversion is being carried out it is possible that premiums may not rise, he added, simply because "all you're doing is increasing the headroom - you're not actually increasing the floor area".
But homeowners carrying out any major improvements to their home could be well advised to check their level of cover. "If you extend your house, whether it's a basement or anything, you're likely to find that your premium will increase," Mr Tovey said.
