18 January 2019

Insuring your Basement Extension

By Renovation Plan

Down has become the new up

A basement conversion could add substantial value to your home, and as such they are becoming more popular. With rising house prices, especially in cities, homeowners are more likely to extend their home than move, putting contract works insurance at the forefront of our minds.

Down has become the new up – sometimes to a depth of 12 metres or three stories – to create a pool and spa areas, media rooms, squash courts, gyms and garaging for Ferrari collections. However, increasing the size of your home by digging out an existing cellar or creating an underground space beneath your garden is a complex project.

During contract works, your property is at a greater risk from factors outside of your control, and with basement extensions especially your neighbouring properties are also at risk. This is why there is a greater need for adequate contractors all risk insurance.

Before any work takes place, you must first notify your home insurance provider. Unfortunately, the vast majority of home insurance providers are unable to accommodate contract works or will look to reduce the standard policy coverage whilst these are ongoing, which could lead to a costly or voided claim. In this instance, you will need the help of a specialist like Renovation Plan to provide you with a contract works insurance solution.

In addition to make sure your existing property is insured you need to check that your contractors are correctly insured and you should make certain that their insurance requirements are included within your contract with them.

One final point, consider the proximity of neighboring properties and the liability of the owner under statute Law.  The Party Wall Act makes the owner liable for any damage caused to an adjoining owner and any adjoining occupier as a result of the works being undertaken.

With Renovation Plan you will have complete peace of mind, knowing that you have done everything possible to ensure that you have sourced the best possible cover to support your renovation project.