One of the most common mistakes owners of listed buildings make when insuring their property is to calculate their cover based on market or mortgage value. With listed buildings, the rebuild value is often significantly higher than the market value—making correct valuation essential for proper protection.
Why Rebuilding Costs Are Higher for Listed Buildings
Listed and historic buildings are constructed with materials and methods rarely used in modern building practices. Rebuilding after damage requires replicating original features such as:
- Iron-framed windows
- Complex staircase designs
- Stonework and period fireplaces
- Hand-crafted timber frames
These unique features make rebuilds costly—especially when heritage preservation standards must be met.
While many property owners refer to the Royal Institute of Chartered Surveyors’ BCIS (Building Costs Information Service), it’s important to note:
“Houses which are not of modern materials and are required to be reinstated exactly are outside the scope of the guide.”
This means BCIS estimates are not appropriate for heritage or non-standard properties.
The Risk of Underinsurance
Studies suggest that 50% to 80% of UK listed buildings are underinsured. If your policy is based on an underestimated rebuild value, any insurance payout could be reduced proportionately.
Example:
If your property’s true rebuild cost is £1,000,000 but is insured for only £600,000, your insurer may reduce any claim by 40%—leaving you with significant out-of-pocket costs.
How to Insure a Listed Building Correctly
- Obtain a professional rebuild valuation from a surveyor with experience in listed and historic properties.
- Choose insurers that specialise in heritage buildings—many offer free rebuild surveys to accurately assess risk.
- Consult an independent insurance broker who can scan the entire market for tailored coverage solutions.
Specialist Policies vs. Standard Insurance
Heritage-specific insurance policies often provide superior coverage without significantly higher premiums. Key benefits include:
- Agreed value cover – full rebuild guaranteed, regardless of cost
- Protection for heritage-specific risks – e.g., thatch fires, older electrics, open fireplaces
- Expert surveyor support – professionals with a focus on preserving original features
Peace of Mind with Suitable Protection
Insuring a listed building is more than just a formality—it’s about preserving a piece of history. The right insurance policy ensures that, in the event of damage, your property can be restored authentically without financial strain.
At Castleacre, we offer expert guidance and customised insurance solutions designed to protect your heritage investment—giving you complete peace of mind.