Home Insurance Building Sums Insured for Listed Building / Period Properties?

Answer:

Although it is possible to calculate Building Sums Insured using BCIS tables for Modern Properties the tables should not be used for Listed or Period Properties.

The BCIS Guide makes particular reference that it is not suitable for Houses which are not of modern materials and are required to be reconstructed exactly as existing which is the case in Listed and Period Properties where specialist materials and craftsmanship are often required.

In addition the guide does not cater for Homes built earlier than the 1900s and also does not allow for properties with a floor area in excess of 320 m2.

The reason for this is that in many Listed and Period Properties there are often many bedrooms and bathrooms. The floor finishes are often of high quality including  marbles, limestone,  ceramics,  and hardwood,  fittings in kitchens and bathrooms tend to be of high quality and there is often ornamental plasterwork in the form of covings and ceilings. 

Internal joinery is generally bespoke and items such as skirtings, architraves, doors, staircases and internal panelling are often constructed of hardwoods.

Similarly external joinery is bespoke and constructed from hardwoods.

In the case of Listed Buildings reinstatement will often require reconstruction of lath and plaster ceilings and lime plaster rather than cement plasters. Reconstruction therefore requires Contractors who specialise in these materials.

Roof structures are often built in oak and other hardwoods and joints in timber frames require hand crafting.

The rates in BCIS tables certainly do not cater for such diverse situations as described above.

How Do I calculate the Building Sum Insured For Listed Buildings / Period Properties

Answer: 

If you own a Listed Building or Period Property the only way to ensure that the Building Sum Insured is adequate is to seek Professional Advice.

Assistance can be sought from Chartered Surveyors or Specialist Architects. Valuing  these types of Properties requires detailed knowledge of construction techniques and pricing  and the advice of specialists is therefore required.

Please press on the Links to Find Members of the Royal Institute of Chartered Surveyors  (RICS) and Royal Institute o British Architects (RIBA)

Why does the Building Sum Insured need to be accurate?

Answer: 

The maximum amount your Insurers have to pay is the Building Sum Insured included in the schedule. Even if the cost of repairs exceeds the sum insured Insurers have no liability for the additional cost. This can prove problematical particularly in Listed and Period Properties. The sum Insured should reflect the full cost of rebuilding your property including an allowance for demolition debris removal and fees. However there are occasions when if  half the building is affected the cost of repair of the damaged  half could exceed the sum insured. In particular in calculating the Building Sum Insured no allowance is made for VAT since new residential properties are VAT exempt however repairing properties always attracts VAT.

In the circumstances particularly in the case of Listed Buildings and Period Properties it is essential that careful consideration be given as to the Building Sum Insured and if anything you should over insure rather than underinsure to ensure that there are sufficient funds to reconstruct the building