Reinstatement insurance during extension build

adocholiday

Hi everyone,

I am in the process of remortgaging to cover an extension. We're about 75% of the way through construction and at the drawdown phase now, and the bank has asked that the reinstatement cover on our home insurance be increased to the amount specified by the valuer. The valuer's report specifies that this will be the reinstatement amount post-construction. The insurer is refusing to increase the cover to this amount however, because the current reinstatement value is less than that. Neither the lender or insurer will budge on this so we're stuck.

Anyone know how we could proceed here? Surely this isn't a unique situation here but we can't get anywhere on it.

phormium

I'd imagine getting the valuer out again now to put a value on it as is, maybe that would satisfy them?

Eggs For Dinner

Your standard household policy does not cover the works under construction. Leaving aside the problem you're having with the valuation, have you protected the value you are adding to your property, either with a self build policy or a contractor's all risks policy if you are using a builder

adocholiday

https://www.boards.ie/discussion/comment/118608469#Comment_118608469

No unfortunately not, because the house would be under-valued for reinstatement a few days later as work is ongoing. None of it makes sense!

https://www.boards.ie/discussion/comment/118609156#Comment_118609156

Yes all good on that front thanks, we have specific cover for the build.