What insurance do I need for an extension?

Though fantastically rewarding, extensions come with their own set of risks that might not be covered in your current insurance; it's important to understand why you need insurance and what kind of insurance to get when building an extension.

Why do I need to consider insurance when building an extension?

Added risks

From smaller jobs, such as a kitchen extension, to larger scale projects, like building a second storey, you and your property may become vulnerable to new safety and security concerns.

For example, your personal belongings within your home may become vulnerable to theft during the work due to the added accessibility of scaffolding or demolished walls. You may have to move out for a period of time during the extension, and many home insurance plans may become invalid if the house is unoccupied.

Extensions can alter the structural integrity of your property, so damages to your existing home may occur during the work. If you’re planning on adding a second storey by creating a basement, your property may become vulnerable to subsidence. Alternatively, pipes in the walls or floor may become damaged during a side extension, potentially causing flooding throughout your home. All of these risks need to be considered and covered before the work has commenced.

Your current plan might not cover you

Unfortunately, your current home insurance policy probably won’t cover your extension due to these new risks, so it’s vital to update your policy before the work begins and inform your current provider of the details of the extension.

For room extensions, side extensions, adding a storey (up or down), constructing a conservatory or converting a loft, we recommend notifying your insurance provider to check your current policy. Any form of work that alters the structure of your home should be taken seriously and covered appropriately.

In the event that your insurance doesn’t cover the extension, your provider will be able to guide you through the process of purchasing add-ons, or specialist insurance, to prevent your current policy becoming invalidated during the work.

Doesn’t my builder come with insurance? 

If you’re working with contractors during an extension, your builder should come with their own public liability insurance; however this only covers them, not you or your property, whilst the contractor is onsite.

For example, if a piece of debris were to hit and injure a member of the public whilst the builder was offsite, you would then be liable without the right insurance. Furthermore, relying only on your builder’s insurance still leaves you vulnerable to events such as theft and the unpredictability of the elements. It's important to ensure your property is fully covered throughout the duration of the extension.

What insurance do I need?

For extensions to the side, front, back or top of your property, you can use building extension insurance. Remember that you will probably also need to obtain planning permission and a party wall agreement to build an extension (a legal agreement between you and a neighbour, who you share a wall or boundary with, that construction work can be made to the wall/boundary in question).

For extensions that require more major renovation, such as complex basement extensions, we recommend opting for a renovation insurance plan. Major renovations might include processes such as demolition and excavation which will likely increase the risk of damage to your existing home, and may also mean you need to move out of your property for a short while.

Ensure that whatever add-on policy you opt for includes the following cover, as your existing home insurance will not:

• Causing damage to your neighbour’s property

• Theft/damage of your belongings and/or building materials

• Damage to building and contents

• Public and employer’s liability

A CPA registered tradesperson will have access to various insurance backed guarantee’s  (IBGs) on a range of products. So we urge you to ensure that the Improvement you are purchasing has appropriate cover.

In some cases, deposit protection scheme may also be available upon application. However, we always advise customers to pay via credit card for full protection under the Consumer Credit Act 1974 section 75.

Unfortunately, there are some less than honest tradespeople that do not value your time or money, so it's vital to do your homework and select tradespeople that can supply you with this information and documentation upon request. We promise that every CPA accredited tradesperson will be able to do so.

Conclusion

Building an extension is an exciting and rewarding project, but make sure that you have done your research and selected the right insurance plan to cover the work.

Remember:

• Your current home insurance plan is unlikely to cover you during the construction of your extension

• Notify your insurance provider before any work begins so they can help you choose the best add-ons or specialist insurance

• Your contractor’s public liability insurance isn’t really enough to cover you (especially from theft, exposure to the elements and public liability whilst the builder is offsite).

• Working with a registered CPA tradesperson can protect you and your money by offering an insurance back guarantee and a deposit protection scheme.

At the CPA, we’re committed to offering expert advice and helping you make smart choices to stay protected throughout your home improvement project, no matter how big or small.