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Basements 'can raise insurance costs'

Adding or renovating a basement to a property can result in increased insurance premiums, one expert has made clear.Alan Tovey, director of the Basement Information Centre, suggests that increasing the capacity of an area underneath a property is viewed in the same way by home insurance providers as any other form of extension.However, Mr Tovey points out that in the case of getting extra usage out of a basement area, insurance firms are likely to take into account the fact that overall flooring space will not be increasing and factor this into their premium rate-setting equations."If you extend your house, whether it's a basement or anything, you're likely to find that your premium will increase," he said. "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."The typical costs associated with adding a basement to a property in the UK is close to £2,000 per sq m, according to the assessment of Mr Tovey's organisation.

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