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Keep insurers informed

Despite some positive signs the property market is still moving at a snails pace. In certain pockets of the country it seems to have picked up so much so that property shows are back on our TV screens. However, for the majority of us, we haven't seen anything like the growth we were used to in 2006/2007.

Because we can't move, many of us are choosing to improve our homes. This trend is increasing, getting a sizeable boost over the summer thanks to the predominantly good weather and home improvement shops seem to have increased their stock value.

This is a sensible choice. You can add value to your home and make the most of government schemes to help your home become greener such as cash rebates for home insulation. However, you should be warned that improving your house, particularly through adding an extension, should be brought to the attention of your insurance provider.

A home insurance company recently discovered that 29% of people didn't realise they had to tell their insurer they were carrying out building works. With an estimated 3.27 million planning to carry out structural improvements on their home over the next 12 months, that's a lot of people that could be under insured or completely void of insurance altogether.

Many insurers won't cover you whilst your extension is being built. You may also have complications with your regular home insurance. Your home is likely to be more exposed therefore insurance companies see this as you increasing the risk of theft or damage and therefore are less likely to pay out in the event of an incident.

Another point to note is insurance is based on factors such as the number of bedrooms and the floor size of your property as well as its overall value. By adding rooms and thus adding value you will probably increase your insurance premium.

This is not a problem if you know about it. You can simply call your insurer. Most insurers just advise you to call the customer service department when the building work will start and when it is due to be finished.

However, if you don't inform your insurer, you could be underinsured or your insurer might invalidate your current insurance and won't pay out on a claim. Honesty is by far the best policy when insurance is concerned.

Finally, if you are looking to renew your insurance policy then take a look at reputable providers such as Kwik Fit Insurance, who offer substantial discounts if you take out house insurance with them online.