Choosing to not insure or self-insure a listed building

By Jim Sales Account Executive

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Considerations, risks and responsibilities.

According to an Ernst & Young (EY) report, the UK home insurance market had its worst year on record in 2022, heavily impacted by major weather events, high inflation, supply chain pressures, and an increase in claims frequency . Despite slight improvements in 2023, insurers continued to face significant losses with some insurers exiting the market, and others becoming more selective.

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As a result, Ernst & Young reported consumer premiums rose by 19% in 2024 and are expected to increase by a further 7% this year.

Due to this we are seeing more people choosing not to insure their property or to opt for self-insurance. This trend reflects the growing frustration with rising premiums, but it comes with a risk – especially for owners of listed buildings.

What’s the difference between not insuring and self-insuring your listed building?

Not insuring your home can save you from paying insurance premiums but it also means you bear the full financial risk if something goes wrong. This would mean that you would be unprotected against accidental damage or theft but also in the event of a fire or flood – which could cause significant damage or leave you with a total loss. If such an event occurs you would incur all repair and replacement costs.
Self-insurance means setting aside sufficient funds to handle potential damages, whether minor or major. Self-insuring requires careful financial planning and discipline to ensure you have the necessary resources to address any unexpected incidents. Simply not insuring, leaves you wide open to a huge financial burden and potentially nowhere to turn.

The question to answer is where do you turn if you simply choose not to insure, and you lose both your home and possessions?

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Risks and your responsibilities when not insuring your listed property

Choosing not to insure or to self-insure is a risk for all property owners. But for those with listed buildings, the responsibilities, risks and potential costs are even greater. As guardians of a piece of history, the repercussions of a partial or total loss can be significant. Plus owning a listed building comes with a legal responsibility to maintain the properties condition and to rebuild as necessary should an incident occur. From minor harm all the way through to a total loss of the building, a listed property must be restored to its original specification, preserving its historical integrity. This can be a complex and costly process, requiring specialist materials and craftsmanship – some of which may have long waiting lists. For more information about this you can visit our resource hub: Listed terminology, classifications and regulations

If you choose to self-insure, you should set aside an amount which covers:

The cost of repairs
The cost of rebuilding your listed property from scratch (remember, the price you paid for your home may be less than the total rebuild cost)
The cost of temporary accommodation while the house is being repaired or rebuilt – this could be needed, in extreme cases, for years
Liability costs should any accidents or injuries occur to others whilst on your land
The potential to replace everything you own at current market values (including all clothing, homeware, etc., in the event of a total loss)

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What can be done about high insurance premiums for my listed building?

If insuring your listed home has become more expensive than you expected, we’d recommend reaching out to a specialist broker like Abode to discuss your insurance requirements. In a climate where premiums are increasing, we have access to a wide selection of the insurance market and specialist schemes. What’s more, we may be able to advise you on a potential cost saving – for example, could you raise your excess to lower your premium? For more advice please read our article: The world of insurance: Busting common misconceptions

For a quote or advice on your listed property insurance call us today on 01622 476 433.

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Listed properties hold an important place in our national heritage. As a result, there are certain laws around the changes you can make to your home both inside and out, to help preserve the features and character that make it individual. Insuring your listed home is therefore more complex, but it is also absolutely vital.

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