Darren Bagnall, of Flat Living Insurance, discusses external what to consider when insuring a heritage building and why it is important.
We know that the complicated language and terminology used in normal insurance policies can be a challenge to read and digest. When it comes to policies for listed buildings, the jargon is even more apparent! We thought it may be useful to highlight some of the key terms used and to explain them in plain English.
Duty of Care
All insurance policies will likely refer to your ‘Duty of Care’. Put simply, this means that it’s on you to make sure that all the details you’ve provided to your broker/insurer are correct.
The policy you end up with is built on the assumption that correct information has been provided- if there are any inaccuracies, you may suffer the consequences if you have to claim. Pay outs could be lower than expected or the policy may be considered entirely void.
You can double check everything by reading your Statement of Insurance once your documents are received- if you don’t understand anything or you’re not sure you’ve given the right information, give your insurer a call to discuss asap.
Unauthorised Work
This one is specific to listed properties- it means that work has taken place at the property without the necessary Listed Building Consent being sought and granted.
Unauthorised Work will lead to more than just a slap on the wrist or a reduced pay out if you need to claim- it’s illegal and can result in a fine or even a prison sentence.
Even if your property was altered by a previous owner without consent, you may have to reverse the alterations at your own cost- yet another reason for a specialist survey and searches to be done before you purchase.
Specific cover is available to insure you against the costs of reverting unauthorised alterations carried out by previous owners (as long as you can show that you were not aware of them, of course).
Curtilage Listed
Curtilage is legally defined as “the enclosed space of ground and buildings immediately surrounding a dwelling-house”, or “the open space situated within a common enclosure belonging to a dwelling-house.”
To explain it in terms of a listed property: if your property is within the grounds of or is attached to a listed building, it may also be listed despite not having a listing of its own.
If you’re in any doubt, contact your local authority or Historic England who will be happy to help.
Endorsements
Endorsements are just amendments made by your insurer to add additional cover, remove cover or to change the scope of cover. They can also add specific terms and conditions to the policy.
You can find any endorsements to your policy in either a separate specific document provided in your pack or as part of the policy schedule- make sure you’ve read them and understood their effect on the policy. Always speak to your insurer to clarify anything you’re unsure of.
Building Sums Insured
We’ve covered this in a few previous articles, but it always bears repeating and especially in the context of listed buildings.
The reinstatement of a listed building will be significantly more expensive than other types of property so it’s vital to ensure that the Sum Insured is adequate. Under-insurance is a common issue for all property owners but it’s even more common with listed buildings due to the complex considerations required- specialist advice and periodic re-evaluation are strongly advised.
Your policy will mention 3 ‘Sum Insured’ values: one for the building, one for the contents and one for any valuables you’ve specifically listed on the policy. These values are what you would receive if your property and contents were completely destroyed.
Your overall Sum Insured will be higher than the reinstatement value of the property and contents replacement combined as it should also include the cost of rebuilding the boundaries and any outbuildings, professional fees, debris removal, solicitor’s fees, fees involved in securing consents and any other costs involved in correctly reinstating your property.
When it comes to calculating your Sum Insured for a listed property, don’t forget that the building’s Sum Insured is not the same as the market value of the property. It’s the amount it would cost to rebuild the property from the ground up while complying with the original design, materials and (where possible) techniques that were used to build the original property.
Non-Standard Construction
This a common one for listed property policies. Standard Construction generally refers to properties with brick cavity walls, tiled roofs and concrete floors. Non-Standard Construction can mean timber-framing, cob stone, traditional brickwork etc- all common techniques and materials used in the construction of listed properties.
These antiquated methods of construction and use of materials tend to require specialist craftsmanship- making them more expensive when it comes to reinstatement or repairs. Your policy should reflect this.
For more information, assistance or a quotation please call a member of the Flat Living Insurance team on 0333 577 2044.
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