Homeowners who have extended their property have been warned to double check whether their buil...
Homeowners who have extended their property have been warned to double check whether their building insurance cover is still adequate.
Halifax General Insurance pointed out that aside from itself and Legal & General, the building insurance policies offered by the major players only covers a specific sum insured, which might not cover all of a claim in the event of total loss. Halifax and Legal & General both offer unlimited sum insurance.
With property price inflation outstripping building cost inflation by an average 3% over the past five years, the cost of extending a home has become increasingly more affordable than moving out. With legal costs, stamp duties and moving costs thrown in, the insurer says the difference between moving or extending can be up to £30,000.
Howard Posner, managing director, said: "In some areas the costs of moving out are outstripping the costs of staying put and extending. In this climate, it is essential to ensure that you don't find out the worst, at the worst time."
Halifax buildings and contents policyholders are required to notify of improvements that add additional bedrooms or garages to a property. Kitchen, living room and conservatory extensions are automatically covered.
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