Figures Show That Some Home Owners Are Unaware of Such Rules

It can often be tempting to add extra areas to a property, adding an extension here or there to add more space and get the most out of the home.

However, figures released by Sainsbury’s Home Insurance reveal that 29% of home owners do not realise that they must inform their insurance provider of any such changes in the property.

The Bank also refers to figures released by TNS in July this year that shows how many people are planning structural change to their property, with 13% of home owners intending to carry out major work. This is actually a large decline on the same period in 2008, which showed 21% of people intended to carry out work.

Of these cases, the majority of work would cost less than £5,000, but a small number of people will be carrying out work that costs more than £100,000 according to the insurer. Examples of work could include conversion of the loft (just under 900,000 people), extending the side of the house (around 650,000) and converting the garage (around 630,000). These have changed from last year, with the second and third place previously amounting to construction of a conservatory and an extension to the rear of the property.

But with 29% of those asked unaware that they need to inform their insurance provider in advance, they could see any claims made invalidated, leaving them majorly out of pocket. If a home owner intends to make any kind of structural change to the property then they must inform their provider. This is because changing the size of shape of the house could change the value of the property.

“Buildings insurance premiums are calculated based on a number of factors, such as the type of house or the number of bedrooms it has,” said Joanne Mallon of Sainsbury’s Home Insurance, “So creating extra rooms can have an impact on your premium even if you have unlimited cover.”

So no matter how closely you know your policy in advance, home owners should always contact their provider. In addition, when searching for a home insurance policy, they should shop around and always read the small print.

“Homeowners should know that in the event of an incident happening during or after the works are completed they could be left underinsured or even invalidate their insurance entirely if they have not informed their insurer first,” adds Mallon.

Source: Sainsbury’s Press Release Aug 2009