The home insurance sector is becoming increasingly competitive, which is likely to be to the advantage of most homeowners as prices become keener. However, for property owners with non-standard design or perhaps with a thatched roof, there’s a greater chance of a higher home insurance premium. Specialist home insurance can be harder to source and sometimes more difficult to understand, so here are a few top tips to help owners of unusual properties.
Fear of flooding
If you live in a high-risk flood area, you’ll need home insurance that gives you peace of mind. You will need a policy that covers both your property and its contents. Choosing a policy that offers alternative accommodation, should your property become uninhabitable, is also advisable. After all, in a worst-case scenario it could be months before your own property has dried out and is rehabitable. Claiming for the refurbishment work is one thing, but your accommodation bill could be equally steep.
‘Flood risk maps and government advice are available online to those considering purchasing or flood treating a property, but a chat with a specialist broker or insurer will give you the insight into what risks factor into your property,’ says Alexandra Rawlings from Towergate Insurance, an insurance intermediary that offers a range of specialist policies. ‘They are the ones who are charging you extra for the policy, so ask them why.’
Escape to the country
Owners of thatched properties should be aware that this unique construction necessitates specialist home insurance. Also bear in mind that the additional level of roof maintenance required is not covered by insurance policies as the natural deterioration of thatch is considered as wear and tear rather than actual damage.
In a thatched cottage, risk calculation is a detailed process that includes everything from the depth of thatch to the distance to the closest fire station. Insurers have to be as exact as possible in order to give you the lowest price possible based on your risk.
‘Open fires in a thatched property really increase the risk,’ says Rawlings, ‘If you have open fire places in your property but don’t use them, make sure this is clearly stated when you build a quote, because it will have a very real effect on the price.’
Cover for listed buildings
If you are the owner of a listed building, or even a building that is old (100 years plus) listed building insurance cover is important, as the small print of many regular policies may not cover what you need.
With older properties it’s very difficult to predict what could go wrong. However, being officially listed makes risk assessment doubly hard because repair work, often on non-standard constructions, must be in keeping with the original aesthetic. This suggests that materials, labour and the time it takes to fix can all increase. For this reason, make sure your building survey is accurate and the rebuild cost is kept up-to-date each time you renew your policy.
Grand designs
Custom-built properties are becoming increasingly popular in the UK, particularly with a number of new government initiatives in place to boost the projects of ambitious self-builders. However, if you have been lucky enough to bring your own ‘grand design’ to life, you need a home insurance policy that covers all the quirks of your property—whether it is a fabulous eco home or a steel-framed architectural masterpiece.
A standard home insurance will almost certainly contain small print clauses that exclude non-standard features. For anything out of the ordinary, you will need to have your risk calculated based on specialist parts and labour, as well as the usual considerations such as location, crime rates, etc.
‘Ignoring these facts and taking out a standard policy is a bit like taking life insurance out knowing you only have a year to live,’ explains Rawlings. ‘You’d be paying a premium that is too low for the amount of risk you pose.’
However non-standard your non-standard home may be, it’s important that you have the protection designed for your property. Paying money for a policy which excludes any of your risks will only give the insurance company grounds to refuse to pay out on a claim; even if it’s unrelated to the reason you needed specialist home insurance in the first place.
Remember!
• If the flood risk, subsidence risk, etc., is too great and insurance companies are refusing to give covert, another option might be to have that particular risk written out of the policy. This requires a specialist insurer and should only be a last resort, but in some cases it might be the only option.
• Before you seek insurance cover make sure you have all relevant documentation to hand and a full survey so that your property’s requirements can be fully understood.
See also:
First Time Buyers
