Listed Building Insurance

Buildings which are of historical or architectural interest carry a higher premium than other properties, sometimes significantly so and it is “not uncommon” to hear of people who are left unwittingly out of pocket because they did not realise the consequences of buying a listed building and the necessity to have it properly insured with listed building insurance.

The historical or architectural charm of listed buildings often makes them very enticing to purchasers. What is sometimes forgotten is that owning a listed building comes with an obligation to repair any damage or replace any loss in similar and sympathetic material. This is usually much more costly than normal building work.

However, too many buyers don’t look into the financial implications of insuring listed properties and it is certainly not uncommon to hear of owners who don’t have adequate listed building insurance cover in place simply because their broker had not been informed.

Brokers must be made aware of the category in which a property is listed and it is essential that a listed building insurance policy covers the necessary repair and restoration costs. The building sums insured must reflect the rebuilding costs as these will be much higher than non-listed properties.

For that reason we would always recommend a building valuation be carried out by a qualified chartered surveyor – this is the safest way to ensure that the sum insured is accurate. The older a building is, the more likely it is to be placed on the Statutory List of Buildings of Architectural or Historic Interest, or just ‘listed’ according to the commonly used abbreviation.

Buildings are listed either for their age and rarity, their architectural or historical merit, or their historical associations. Listed buildings are categorised by importance – with Grade I the most important, through to Grade II* and then Grade II.

Where a property is listed it cannot be demolished, extended or altered without obtaining listed building planning consent and planning permission from the relevant local authority.

Owners need to be aware of all their obligations and if in doubt liaise direct with their broker to ensure that the correct level of listed building insurance cover is put in place.