You need to advise the insurance company that you are having work done to the house and what alternative security arrangements you have made if any, it is a material fact that you are having work done at your premises and you dont want to find out that you arent covered becase you didnt tell them should you need to make a claim.. you should also check that the people doing work on your premises have insurance cover in place.
As to what you need to increase your sums insured to, you need to insure your house for the amount it would cost to rebuild it not the market price therefore if the cost of your conservatory is €5,000 to have ti built you need to add €5,000 to the buildings sum insured of your house.