Building Extension Insurance

Housing is a topic that often dominates UK headlines. The ongoing housing crisis has prompted prospective and existing homeowners to rethink their actions. Something many homeowners may be faced with is the decision of whether to move house or extend their home.

For those who decide to get an extension, there are things to consider, and building extension insurance is one of the most important. And when you get insurance, you also need to consider the right level of building extension insurance. So, here’s what you need to know.

Why might someone get an extension?

One of the main reasons for getting an extension is to get more out of your current space. You might need a rear extension to create an office now that you work from home, or you might want a loft conversion because your family is growing. Whatever the motive, extensions give homeowners an alternative to relocating.

An extension might be a more affordable option, or you might just be fond of your neighbourhood. Alternatively, you may view it as an opportunity to increase the value of your home.

What insurance do I need for building an extension?

Whether you plan a self-build extension or hire contractors, having the right insurance in place is vital. When doing major works on your home, risks are inevitable. That’s why you must secure building insurance.

Building extension insurance is sometimes referred to as site insurance. It differs slightly from renovation insurance.

Why should I get building extension insurance and what does it cover?

Having building extension insurance in place may mean that you’re covered against risks that your contractor’s insurance policy may not cover. It can also include areas that your home insurance may not cover, as an extension build exposes your home to structural and security risks.

Depending on the level of cover you choose, examples might include protection against:

• Damage to your current property: Construction work means your property will be prone to damage. Common risks include water leakage or damage to walls, which can be costly to fix if you aren’t insured.
• Invalidating your home insurance: Not letting your insurer know that you’re undergoing an extension could invalidate your home insurance during this period. Having the correct insurance in place – in this case, extension insurance – in good time will avoid this issue. While some insurers may not need this additional cover, others might insist. It’s always best to check.
• Third-party claims relating to injuries on-site: To avoid these, you’ll need cover that includes public liability insurance. This means that if someone is hurt while on your site, you will be protected as the homeowner.

When should you arrange extension insurance?

Insurance should be discussed as early as possible in the initial planning stages of an upcoming project. The policy should be in place before work commences, otherwise it may be void.

Make sure you have conversations with your home insurance provider at this stage too, as most standard home insurance policies are unlikely to cover building work such as extensions. The likelihood is that you will need specialty insurance, like extension insurance, to cover risks during this period.

Having these conversations now gives you time to get everything in place before work begins.

How much does it cost to get extension insurance?

The answer to this will depend on several factors. The type of work being carried out will have a particularly big influence. From loft to rear extensions, every project will throw up different structural requirements and risks that will dictate how much your cover will cost. Basement extensions, for instance, can be complex, involving underpinning and piling. Then, there’s the estimated length of time to complete the project, as well as the level of cover you go for.

Your extension insurance provider will need to know this information upfront to provide an accurate quote. This will help them to match you with a policy that suits your project.