'Extensions likely to increase home insurance premiums'

Carrying out extension work or simply refurbishing a basement adds value to a property, thereby hitching up the home insurance premiums, according to new advice.

Extensions can cost more than simple basement refurbishments, though transforming an old cellar could have an effect on premiums due to the material used, says Alan Tovey, director of the Basement Information Centre.

"If you extend your house, whether it’s a basement or anything, you’re likely to find that your premium will increase," he confirmed.

Mr Tovey continued: "You might find with a basement conversion that it may not have hardly any effect on [premiums], because basically you’ve got all of the basement there, and all you’re doing is increasing the headroom – you’re not actually increasing the floor area."

He advised home owners to make sure the builders who are involved with any construction or decoration work are insured.