Carrying out an extension project brings an increased risk of loss or damage because not only are you carrying out new works but you have an increased exposure in the form of the structure that’s being extended – which is usually your house. Extension insurance is crucial as home insurance does not normally adequately cover the risks that are inherent in an extension project.
HOW EXTENSION INSURANCE WORKS
Extension insurance needs to cater for both the existing elements of the property that’s being extended and all the new extension works that go into the process. The existing structure is usually your house – so if the property collapses while creating a new opening for example, the extension insurance will cover it and completely replaces the requirement for buildings insurance, which is not suitable. All the works, including any temporary works, materials, plant tools and equipment need to be covered. Public liability and employers liability is automatically included to ensure you are adequately protected.
Extension insurance needs to be in place from the moment you plan to start works on the property and should continue to the point the project is completed and taken into full use.
If you are utilising a contractor to carry out the works, issues may arise as to who is contractually responsible for insuring the existing structure because the contractors insurance will not cover it. Extension Insurance can solve that issue quite simply.