Some people advise waiting an entire year or four seasons before adding a basement to a new build home to ensure no flaws are in the base walls and floors.

However, some people choose not to wait that long. Knowing what to consider before deciding to finish the basement, how to get new build home insurance, and the pros and cons of finishing a basement can help you make a good decision.

Why finish a basement?

There are several reasons why you should finish your basement. However, the choice ultimately depends on your household wants and needs.

You Can Earn Extra Money

Make your basement livable, and you may rent it out or advertise it on sites like Airbnb. That underutilized area might now provide you with a steady stream of revenue.

A fire-safe basement is a must, so be sure to check for proper escape and entry points in the space before moving in. A parking spot outside the basement can even be a good idea if you want to make the basement property more marketable.

You Have an Extra Room or Two

By completing your basement, you’re able to make use of space that was previously underused in your house. The best feature is that you don’t have to go out and buy more land or build a higher main floor.

You may expand your living area for a fraction of the expense of buying a new house by using the basement.

A man cave, movie theater room, playroom, party room, or whatever else you might think of are all viable options for this additional room. Everything is up to you and your level of inventiveness.

Serves as an Alternative to Zoning Ordinances

As an alternative to adding on extra space that may violate local building codes, finishing your basement might be an excellent option. Your neighbor may have objected to your home’s expansion because it was too near to their land.

Alternatively, you might not be able to ascend more than two stories due to municipal regulations.

With the basement finished, you won’t have to worry about zoning rules when you need more room.

There Can Be Monetary Rewards

Your home’s worth will rise as a result of finishing your basement. The basement might be a wise investment if you intend on selling your home in the near future.

This impact will be much more pronounced if you live in a community with many unfinished basements. When compared to other properties, it quickly sets yours apart.

With careful planning and execution of your finished work, you will get a good return on your investment, even if finishing costs money. Specific sources have estimated a return on investment of up to 80%.

Why should I not finish my basement?

Why should I not finish my basement?

The option to finish the basement or leave it unfinished might have to be made while creating a new construction house.

Building a house with a finished basement costs more in the long run, but it’s cheaper per square foot than completing the first floor. You must also consider other criteria, such as the location of your house and the status of the real estate market.

While we’ve already addressed the advantages to completing a basement, there are some disadvantages to meeting your unfinished basement.

It Can Cost a Lot of Money

The average price per square foot to finish a basement can cost up to $40. Aside from the cost of actually finishing the basement, you also have to furnish it, worry about the style and design, and consider your options for central heating and cooling. As a result, you must be ready to make a significant financial commitment.

Construction Can Be Time Consuming

A basement renovation might take weeks or even months to complete. The weather may further affect this timetable from time to time.

On the other hand, contractors and experts will have their own set of constraints when it comes to timelines. You’ll need to carve out some time in your hectic schedule to devote to finishing the basement.

It Can Be a Bad Investment Move

The benefits of completing the basement include increased resale or rental value of your home. However, this approach might not always be successful.

If much of your area sells houses at meager prices with unfinished basements, you may find yourself priced out of the market. You’ll need to locate a buyer that appreciates the value of a completed basement. There’s always the chance of missing out on a good bargain.

Moisture Can Affect the Space

Humidity and moisture may wreak havoc on your intentions to preserve a recently completed basement in your home’s location. Almost wherever you look in the basement, you’ll find signs of water damage. Mold and mildew growth are possible outcomes.

As a result, if you want to combat the consequences of basement humidity, you’ll need to budget for it regularly.

Do I need insurance on a newly constructed home?

Adding a basement to a new home differs from updating an older home. Your house and any buildings on your property, as well as your personal items, are covered by new-build home insurance if an event occurs within the policy’s limitations.

As part of this package, the homeowner’s responsibility is usually covered in case of an incident on their property.

Owners’ insurance for newly built houses covers different coverage during construction than after that.

Typically, construction businesses have their own policy covering building supplies and liability insurance to safeguard the company.

There is no protection for the customer under this policy. It is possible to get construction insurance, which will be converted to standard homeowner’s coverage after the buyer has moved in. In the early phases of construction, it is essential to get new house insurance.

You should now have a better understanding of the pros and cons of completing a basement. The benefits may be highly lucrative if you can overcome the drawbacks or find a solution to them, especially if you find a policy that will cover your new construction.

Finishing your basement now may not be the best idea if the drawbacks are too significant for you to bear at present.


Imani Francies writes and researches for the insurance comparison site, She has experience finishing a basement in a newly built house as a homeowner.

Last Updated on 2 years by George Morgan