Home insurance explained: renovations, extensions and buildings insurance

Home insurance is a vital aspect of owning or renting a property, protecting your treasured possessions and providing you with peace of mind that they are safe and secure even when you are not at home. There are various factors and aspects of your property which can affect the type of home insurance you should be looking for, and here we explain a little more about how to find the right insurance for you and your home.

Building an extension

If you are building an extension at your property, it is important to note that this could well add value to your property; an extremely positive aspect of such a build, but one that, in turn, will increase your home insurance premium.

In this instance, it is of vital importance that you remember to inform your insurer of the alterations being made to your home. Failure to do so could result in your insurer refusing to pay out were you to make a claim, as you had not been truthful to them about the value of your property and, thus, the level at which your premium should be set at. Insurers should be made aware of these changes and any work being carried out prior to its occurrence. This is because having work carried out at your home puts your building and possessions at risk of damage from any collateral damage that may be caused by the physical act of carrying out the work. Another reason for this is if your home is undergoing extensive work and will, therefore, be left vacant for a long period of time; something which also puts it at risk of damage or even burglary.

Insuring your home for market value or rebuilding cost

When insuring your home, you are insuring it in terms of its rebuilding cost rather than its market value. Whether this is higher or lower than the market cost depends on your individual home in its present condition, but does not take into account the value of the land included with your property. For those who have just purchased their property, the rebuild cost required to correctly insure the house should be on the mortgage valuation, so that buyers are made aware of this aspect of the house’s price upon their decision to pursue the purchase of the property.

As a rule, if your property is particularly unusual or is listed, it is advisable to have a surveyor take a look to ensure you are aware of the rebuilding cost and, thus, the level at which your home insurance will be set. It is also advisable, whatever your property’s type, to check whether the rebuilding cost on your property changes at all over time, such as if you have had an extension or rebuild. This is something which, if paid attention to, could save you both time and money.

Here at The Insurance Store, we are committed to providing all our customers with expert advice on how their home insurance can be affected by instances such as building extensions. With over 30 years’ experience, our customers can have total peace of mind that our insurance is fully comprehensive, leaving them and their properties completely protected. To find out more about home insurance for your property in the St Albans and Harpenden area, get in touch with our friendly team of experts today and let us provide you with the right home insurance for you.