Listed House Insurance
If you own a listed house, then you’re going to need some help when it comes to insurance. A listed house and all that entails is a far larger responsibility than a property without such a status.
What you require from an insurance company is a thorough and detailed approach. And one which you might have the opportunity to add in cover for contents and personal belongings as well as insurance for your listed house.
Firstly, just to be sure about the definitions, a listed house is an official status. To be listed, the house has to be acknowledged as such by the secretary of state as being of special interest and furthermore, worthy of the special protection that being listed implies. And the building will be ‘listed’ on a register.
In other words, being listed is an official status and not up to the owner alone to change. And many structures can be listed, not just houses, and includes walls, milestones and canal locks.
A little confusingly, there is no one set reason for a property becoming listed, it more concerns an opinion as to whether it is worthy of being protected for the current and future generations. Created just after the second world war, the listing process came about as a response to the destruction wrought by five years of conflict with Germany.
Organised into three main areas (in England and Wales), only about 2% of buildings are Grade One (of exceptional interest); 4% are Grade 2* (important examples of special interest buildings); and, the vast majority, around 94%, are Grade 2 (of special interest). And these grades are protected by law. For example, making structural changes, even minor and cosmetic, without permission, can cause you a lot of trouble.
Therefore, when it comes to insuring the structure of a listed house, the insurance company needs to understand the major, but also, the subtle differences when it comes to protecting against the risks. And of course, the biggest problem is ensuring that there is enough cover to rebuild the house should the worse happen and it be completely destroyed. And although rarely is the house completely destroyed, the insurance has to be based on the worst scenario.
And in reaching a premium estimate, the insurance company has to consider a number of things:
- confirmed listed status;
- current market value;
- estimated cost of total reinstatement (to effectively re-create the building using authentic materials);
- estimated cost to rebuild with modern materials;
- estimated cost of indemnity insurance (basic cover which provides for a rebuild, but not to the level of the original building);
- on-going maintenance costs;
- house owners background material (surveyor’s reports, measurements and photographs of existing property).
And in deciding upon a premium, the insurance company has to take into account not only the listed status, but the owner’s wishes and their ability to pay for certain levels of the insurance.
In other words, the insurance company has to highly experienced in such buildings and in their ability to deal with the owners.
Remember, only choose an insurance company which has a deep empathy with a listed house.
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