Is it more expensive to insure a Listed Building?
The two most common questions we are asked at Property Insurance Centre (PIC) in relation to Listed Building Insurance are:
- Is it more expensive to insure a listed building?
- What does insurance cost on a grade 2 listed building?
To answer these questions, it is important to understand what listed buildings are & the various categories of listed buildings there are:
Listed Building Categories
Grade 1 – These are buildings of exceptional special interest
Grade 2* – These are particularly important buildings of more than special interest
Grade 2 – These are buildings of special interest, warranting every effort to preserve them
Straight away you will see which one will carry to most risk for insurers & therefore might cost more if it require reinstatement!
Who is responsible for designating listed building their status?
Historic England are responsible designating listed building status. They are a Public Body and their aim is help people care for, enjoy and celebrate England’s spectacular historic environment. They are funded largely by the Department for Digital, Culture, Media and Sport.
How a building is designated Listed Building Status?
- The get nominated (for example, by Historic England)
- Historic England will designate listed building status themselves
The vast majority of listed buildings with Listed Status fall in to the category of Grade 2 – these account for more than 90% of listed buildings in England alone.
What does it mean if your building has listed status?
If your building is listed, making changes to the property will require special permission from the Local Council. This can cause concern for many, as you may need specialist materials or particular craftsmen that are trained and skilled in various techniques that will preserve the building’s character.
Listed Buildings – Scotland, Wales & Northern Ireland
The whole of the UK possess these building of architectural or special significance. They are treated much the same way in that they are preserved, however, there are different rules for the different parts of the United Kingdom.
Scotland – Historic Environment Scotland are the most prominent body in Scotland for listed buildings. They will guide the local council in matter relating to consent for works on listed buildings.
Wales – The planning division of the Welsh Government’s Historic Environment Service will guide the local authority in Wales, in much the same way Historic Environment Scotland does in Scotland.
Northern Ireland – Listed buildings are listed slight differently in the province. They range from B2, B1, B+ & finally A. The Historic Division in the Department for Communities will provide the local councils with guidance here.
If you want to know if your building is listed, you can either contact the local authority where the building is, or you can contact one of the above, and including the National Heritage List if you are in England.
What does insurance cost on a Listed building?
Insurance on a listed building will take into consideration various factors. These factors were discussed in our previous article & are no different from a standard buildings insurance policy. Depending on the class of business of course, the insurer will want to know the following:
- Age of the building
- How many years you have owned the building
- Claims experience
- Postcode (some areas carry a higher risk that others)
This is or course a very basic list of factors that will influence the price of a Listed Buildings/insurance quote, but it will give you an idea of some of the most important factors that will determine pricing by the insurance company.
Listed buildings do not ALWAYS mean you pay more, and this is especially the case for Grade 2 listed buildings. You will of course need to declare it to the insurer or broker, but often the case is the premium will not be loaded. Property Insurance Centre use various insurers who only consider the Year of Build & do not load premiums for grade 2 listed status. It simply depends on the class of business (ie whether it’s Home or Commercial Property Insurance), as to which insurer we approach & whether or not require this to be declared. Grade 1 Listed buildings normally will incur a higher premium. This can be due to the type of building or stonework used, which will be much more costly than standard brickwork on a modern building, should it need to be replaced due to a fire for example.
Listed Buildings Insurance classes of business we can provide cover for:
- Commercial Property Owners Insurance
- Blocks of Flats Insurance
- Residential Landlords Insurance
- Home Insurance
- Holiday Home Insurance
What does listed building insurance include?
The cover you are granted under a listed buildings insurance policy are usually no different than that of a standard building insurance policy with Property Insurance Centre, you will be glad to know. All of our usual benefits are included, such as cover for the following:
Fire, lightning, earthquake, aircraft, impact by third party vehicles, storm, flood, escape of water and so on.
Just a like a standard Property insurance Centre Home Insurance policy, you can add the following extras:
Extended Accidental Damage, Legal Expenses, personal possessions and subsidence.
Please note, many of the extras are included as standard with PIC, depending on the market we place the risk with.
If you need help with your listed building insurance, then get in touch with us. We can save you money and take the hassle out of searching providers – we will do that for you.