Halifax claims that homeowners who choose to extend their homes often fail to review their cover, and sometimes fail to make sure that their home insurance cover has kept pace with the changes they have made.
The lender says that homeowners who have not taken changes into account may have a problem. An examination of some of the UK's largest insurance companies by Halifax shows that only a small number of building insurance policies have the 'peace of mind' which unlimited sum insured offers.
Some buildings insurance policies only cover a specific sum insured and, as such, they may not cover all of the claim in the event of total loss.
