Home insurance for period homes
Due to the structure, materials and characteristics of period properties they require a special form of protection. Here we look at the features you need to ensure your property is suitably covered, the importance of specialist repairers and whether you can find cheap home insurance for period homes.
Do you need specialist insurance for a period home?
Generally, period homes have high values which can make them more difficult to insure as most conventional insurance companies place caps on the rebuild value of a property that they are willing to cover. Many period homes need to be returned to their original standard if they suffer extensive damage – such as from a fire or storm – and this added risk means most conventional home insurance policies are unsuitable, either because they don’t offer the level of cover needed or because policy premiums are too high.
However, there a number of specialist home insurers that offer policy features designed for these properties and their contents. Many specialist insurers offer cover that will pay for around 125 per cent of the sum insured as a safety net, as it can be difficult to predetermine a period home’s rebuild costs; and some will not carry penalties for under insurance.
The importance of specialist repairs
If a property is listed it needs to be restored to its original condition or you could face prosecution. For this you will usually need a specialist insurer that offers skilled tradesmen and materials in the event of a claim.
Research by Yorkshire Bank in May 2008 revealed that 43 per cent of home buyers would be put off by a property that was period on the outside but had a modern interior lacking the original character and charm. Despite this, figures from Period Property UK show that 70 per cent of repairs to period homes are carried out by non-specialist workers using inappropriate materials that could negatively affect the home’s value.
Conventional home insurance rarely covers the aged materials, specialist stonework and trained craftsman needed to maintain the property and so a specialist home insurance policy is advisable. Also look into whether or not you will be covered for administration costs – these are the costs associated with arranging for specialist repairs.
What other features should you look for in a policy?
In addition to ensuring that your period home is covered for specialist repairs, you may also look out for the following features as appropriate for your home:
- Commercial use – If a property has been converted for commercial use, you will need specialist cover to ensure it is restored correctly in the event of a claim.
- High value items – Most standard home insurance policies only cover individual contents up to a specified item limit of £1,500 - anything with a value higher than the limit needs to be listed separately on the policy. Therefore, if your home contains several high value items – such as antiques or artwork – you will require a higher contents insurance limit both in terms of cover for individual items and the overall sum insured.
- No penalties – Check the terms and conditions carefully to ensure you will not be penalised if your estimates regarding the rebuild value or contents of your home are not accurate.
- Restoration and refurbishment – Many standard home insurance policies will not cover unoccupied properties and buildings under renovation, while others will only offer fire cover which can be insufficient for some lenders’ requirements. If you’re purchasing a property under renovation, look to see if you are protected for property owners’ liability to protect you from claims for injury or damage; and existing structure cover while it is unoccupied or unsecured.
- Thatch fire cover – Thatched homes are particularly vulnerable to fire damage as any fire is likely to wipe out the roof altogether. As such you should look for a policy that offers thatch fire cover – most insurers will insist that you take added precautions to prevent fires taking place, such as by fitting lightning conductors.
- Trace and access cover – Burst pipes are a common cause for home insurance claims in any property. However, in a period home they pose an added risk as a repairer may need to break through a slate floor to access the problem – so make sure your cover includes “trace and access”.
Can you get cheap home insurance for period properties?
Understandably, a higher level of cover for a home will usually be reflected with higher premiums. As such it’s vital to shop around – use a comparison website to see if any conventional insurers offer suitable policies and contact specialist insurers too for quotes.
Take steps to reduce your home insurance costs too. Fitting security devices such as time-switch lights, burglar alarms, and CCTV cameras reduces the risk of theft and this usually earns a discount with an insurer. Protecting your home from fire damage with smoke alarms and extinguishers could also be reflected with cheaper premiums. You could also consider raising your voluntary excess – though it should only be set at a level you can comfortably afford; and paying premiums annually to avoid interest charges.