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Home Insurance News
Property extensions 'may increase home insurance' - 30/11/2007
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Extending a property through a cellar conversion often increases its overall value, which may also result in higher home insurance premiums, the Basement Information Centre has said.
With a variety of insurance-backed schemes available on the market, extension work is not difficult to insure, according to centre director Alan Tovey, but it is important that any builders undertaking work on a property are covered fully.
He added that it is important to research the effect a basement conversion or other extension may have on the price of a home insurance policy.
"Your house insurance is based on the value of your property, on the rebuild costs," he explained.
"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.
He also explained that converting an existing basement will often have a minimum effect on home insurance costs because the floor area is already in place, but that developing a new extension will increase premiums.
According to the Basement Information Centre, the cost of adding a new basement under an existing property is typically between £2,000 and £2,500 per square metre.
© Adfero
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