Extending a home can lead to higher insurance premiums, warns the Basement Information Centre.

The advisory service claimed that anything that may add to the value of a property can increase the cost of insuring the building.

He said: "Your house insurance is based on the value of your property, on the rebuild costs.

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

Mr Tovey also advised that homeowners ensure the laborers working on the property are fully insured for the job they are doing.

There are insurance-backed schemes available for the work, he added.

According to the Basement Information Centre, the average cost of adding a basement to an existing property is between £2,000 and £2,500.

Of those who have undertaken home extensions over the last year, one-quarter did so to increase the value of their home, reports Halifax.

© Adfero Ltd