How Does Your Home Insurance Account for Home Extensions?

When you decide to expand your home, it is essential to consider the impact this may have on your home insurance. Extensions can change the value of the property and, as a result, affect the level of cover needed to protect your investment. In practice, insurers assess these changes when reviewing your policy, so any renovation that increases the size or usefulness of the home should be declared.

The different types of home extensions

Before looking at insurance in detail, it helps to understand the main types of home extensions:

• Horizontal extension: this involves adding a new room or space at ground level, usually by building an adjoining structure next to the existing house.
• Vertical extension: this type of project adds another storey to the home, for example by converting an attic or raising the roof.
• Interior reconfiguration: this concerns changes to the internal layout of the property, such as removing partitions or creating new rooms.
• Outdoor improvement: this refers to upgrades to the property such as a swimming pool, garage, veranda, or landscaped garden.

How extensions affect home insurance

Home extensions can have several consequences for your insurance contract:

1. Increase in property value: expanding your home usually raises its market value. That is why your insurer should be informed of the work, so the insured sum can be adjusted and the risk of underinsurance in the event of a claim can be avoided.
2. Change in risk profile: some extensions alter the risks covered by home insurance. For example, adding a swimming pool may increase the risk of accidents or liability claims. These changes should always be communicated to the insurer to ensure the cover remains suitable.
3. Changes to coverage terms: depending on the scale and nature of the work, the insurer may adapt the guarantees included in the policy. This can lead to a higher or lower premium, depending on the new risks associated with the extension. It is worth discussing the contract in detail to keep the best possible balance between price and protection.

How to tell your insurer about extension work

To make sure home insurance properly reflects an extension, the insurer should be contacted as early as possible. A few practical steps can make the process easier:

1. Contact your insurer before the work begins to discuss the project and confirm how the policy should be updated.
2. Keep records of every stage of the work, including plans and estimates, in a dedicated file.
3. Once the work is finished, send the insurer all relevant documents relating to the extension, such as planning permission and compliance certificates, so the insured amount and guarantees can be adjusted accordingly.
4. If needed, ask for a full review of your home insurance policy to make sure the new extension is properly covered.

Extensions and multirisk home insurance policies

Most home insurance policies are sold as multirisk contracts. These policies are designed to provide broad cover and are generally suitable for owners of detached homes and similar properties. The guarantees included in such contracts may need to be updated after an extension has been completed:

• Fire cover: this covers damage caused by fire, explosion, or lightning. An extension increases the living area and therefore the value of the property that must be protected in the event of a fire.
• Water damage cover: this covers losses caused by leaks or seepage. If the extension includes a bathroom or kitchen, this guarantee should be reviewed carefully.
• Theft and vandalism cover: this protects against losses caused by burglary or vandalism. Extensions can sometimes increase exposure to this type of risk, especially if they add extra exterior access points such as a door or window.
• Public liability cover: this protects against material damage or bodily injury caused to third parties in private life. Extensions can affect this cover, especially if they include features such as a swimming pool or trampoline.

In short, it is important to understand how home insurance takes extensions into account so that your property remains properly protected. Discussing the project with your insurer makes it easier to adjust the contract to the new layout and to keep peace of mind in case something goes wrong.

Choosing the right home insurance policy for your extension

To choose the right home insurance formula, several factors need to be considered. If you extend your house, the cost of the policy will most likely rise, since the floor area of the home has increased.

Allianz, for example, may offer a suitable policy at a very competitive price. The best approach is to contact the insurer directly in order to request a quote and get a clearer idea of the cost. It is also wise to obtain several estimates from different insurers so you can compare prices as well as the conditions offered.

When reviewing these offers, pay close attention to the subscription conditions. Some situations may not be covered, which can lead to unpleasant surprises later on. Deductibles, the guarantees included, and the compensation limits are all important points to check.

If you decide to extend your home, your insurance policy should be updated accordingly so that the new space is fully taken into account. That way, you reduce the risk of gaps in cover and ensure your property remains protected if a claim occurs.