Homeowners making structural changes must inform insurer

Up to 3.27 million (13%) of British homeowners intend to undertake some sort of major structural work on their home in the next 12 months, research from Sainsbury's Home Insurance reveals. This figure is down by 39% on 2008 when a fifth (21%) of homeowners said they planned to make structural changes over the upcoming year.

Of the 13% of homeowners that are planning structural work, the three most common works planned are:-

loft conversions (873,000)
side extensions (653,000)
garage conversions (632,000).

Loft conversions were also the most widely planned structural change in 2008 (1.3 million); however the second and third most popular changes last year were building a conservatory (1.2 million) and adding a rear extension (950,000).

The new research reveals that the average amount to be spent per household on structural changes over the next 12 months is £22,730. Of those planning works, one in three (34%) intends to spend more than £20,000, just 5% plan to spend over £50,000 and 3% expect their works to cost more than £100,000. Although the number of people planning structural changes to their home over the next 12 months has fallen compared with last year, the average amount of anticipated expenditure has actually increased by 31%; the planned spend was £17,361 last year.

Sainsbury's Home Insurance warns that homeowners planning to make any structural changes to their property should inform their buildings insurer first in order to ensure that they are fully covered for the increased value of their home through expanding and improving it. Indeed when questioned 29% of people considering carrying out structural works said that they were not aware that they had to inform their home buildings insurer before the works started.

Joanne Mallon, Sainsbury's Home Insurance Manager, said: "In the current housing climate, creating extra space in your home is another option for those who have maybe decided to put their plans to move on hold. Buildings insurance premiums are calculated based on a number of factors, such as the type of house or the number of bedrooms it has, so creating extra rooms can have an impact on your premium even if you have unlimited cover.

"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."

On a location basis, garage conversions are most popular in the East and West Midlands region with 209,000 homeowners planning to carry out these works in the next 12 months.

About Sainsbury's Home Insurance:

As well as being competitively priced, the bank also offers an extensive range of cover and benefits. This includes:

Unlimited buildings cover
Unlike some home insurers, Sainsbury's Finance does not apply charges for customers paying their premiums by direct debit
Maximum no-claims discount of up to 30%
Optional no-claims discount protection (additional premium required)
Cover for accidental damage - even pets (additional premium required)

To find out more about Sainsbury's Home Insurance, visit sainsburysbank.co.uk