12 Sep Extension insurance in North London – a no-nonsense pros and cons assessment
When you choose to extend your home, it makes sense to investigate the need you may have for extension insurance. In most cases your home insurance simply will not provide adequate cover for the risks that exist on any extension project, no matter how good your builder may be.
Do I have to inform my current insurer?
Absolutely. If you are having any kind of major work done to your property you should always inform your insurer. With contractors and material suppliers wandering around your site/property there are many reasons for your insurer to claim that your property is not as secure as you defined it when you took the policy out. And when you’re knocking down walls or carrying out electrical works on your extension, your home is naturally at a greater risk of damage than it would normally be. Let them know well before any work is due to start.
Does my standard home insurance cover me for an extension?
Standard home insurance cover is taken out to protect your property from things that are beyond your control happening to it – fire, theft, flooding, etc. However, you have chosen to increase the risk profile on your property by building an extension, you are, therefore, putting your property in greater danger and at the same time reducing the likelihood of your insurer paying out should something happen. While contractors are often covered for poor or faulty work, you will need to speak with your insurer to see whether they will extend your cover to encompass the myriad of other things that could go wrong. If not then you may need to take out extension insurance. It’s not cheap, but the costs if you don’t have it when you need it will be significantly higher.
What your extension insurance should cover?
- The existing structure of your home
- The new structure you are building
- All temporary works
- All materials, equipment and plant tools
- Public liability and employer’s liability
- Legal expenses
Why do you need extension insurance?
- All the usual reasons why you might need property insurance such as fire and flood damage, but as a result of extension works
- Theft of equipment, tools and materials from the site
- Damage caused by the works
- Damage to other people’s property
- Injury to contractors, friends and family on site
When to apply for extension insurance?
The works involved in extending any property are significant; the investment you make will be equally so, but the potential for damage is many times greater again. It is, therefore, important that you get your insurance in place well before any work begins.
So, speak to your insurer, speak to your contractor, and if you still have any questions, give us a call and we’ll do our best to point you in the right direction.