Insurance premiums higher on older homes

PROPERTIES built in previous centuries have a “heritage premium” for home insurance, according to Compare the Market.

In general, homeowners can expect to pay 168 per cent more in insurance at an average of £166 a year.

Tudor homes built between 1485 and 1603 are the most expensive to insure, starting at £247.

Properties built in the Stuart era, between 1603 and 1714, attract a premium of £210 a year, while Georgian homes built between 1714 and 1830 can cost around £171 per year.

Contemporary houses built from 2000 onwards cost the least to insure, on average £92 per year.

The reason for the premiums for period homes is that they are prone to significant wear and tear.

For example, Tudor properties can have poor drainage systems which can lead to costly water damage claims.

Neil Wood, of insurance services at SPF Private Clients, says: “Older homes are likely to be regarded as more expensive to insure when compared to a house built in the last 20 years.

“Properties which are 100 years old more generally suffer from structural issues, old plumbing and electrics and roof problems. If a property is listed, this could mean costly and complicated repairs.”

English Heritage says that if more than 40 per cent of a listed period building has survived some form of damage, it is likely that the rebuild costs are often greater and you are legally required to repair or replace as was” so it is vital to ensure that insurance cover allows for the use of appropriate materials.

Helen Phipps, of Compare the Market, says: “Period homes built decades or even centuries ago often possess great charm but it is important for anyone considering purchasing a period property to be aware of the higher insurance premiums associated with owning and preserving the building.

“Ask for a certified third party to evaluate your home for appropriate structural checks to confirm a reasonable insurance premium.”