Historic Structures, Heritage Properties and Listed Building Insurance
A listed building is a property that has been placed on the Statutory List of Buildings of Special Architectural or Historic Interest.
Heritage buildings are defined as buildings, artifacts, monuments, sites or activities with archaeological, historic, architectural, cultural, engineering or scientific significance.
There are some 370,000 listed buildings in England, of which just 2% are Grade 1. 4% are Grade 2* listed, the remaining 94% are Grade 2 listed. All of course require insurance.
What buildings generally become listed? from 1st April 2005 English Heritage became responsible for the administration of the listing system. All structures before 1700 became listed plus most building between 1700 and 1840. Buildings built between 1840 and 1945 of definite quality were considered and buildings built post 1945 of exceptional importance have been added.
Scotland has it’s own system.
There are many trends impacting the heritage sector. Government cut-backs have hit culture hard, resulting in reduced funding across the sector. Heritage crime, specifically theft of metals, is on the increase.
If you own or are responsible for a heritage property, you have an important role in helping to protect our country’s heritage. But you may also have legal responsibilities regarding it’s repair and upkeep:
Fact: carrying out unauthorised work, even repair work, to a listed building is a criminal offence punishable by a fine or a prison sentence.
Fact: any building located within a conservation area may be subject to tighter planning restrictions and additional costs, such as special building materials – even if it is not listed.
Fact: research by our surveying department showed that only 28% of listed properties are correctly insured, with 17% significantly over-insured and a massive 55% under-insured.
Although many businesses rely on the heritage features of their properties to attract customers, many do not protect this aspect of their business or may not have considered its financial impact should they be unable to restore it in the event of a loss.
Without specialist knowledge, it is easy to underestimate or even overestimate your insurance needs. It is therefore essential to use specialist heritage insurance.
Insurances for listed buildings, historic structures and heritage properties
Insuring listed, historic or heritage properties requires a specialist insurer.
Rowlands & Hames Insurance Brokers arranges insurance for listed, historic and heritage properties with a range of specialist insurers conversant with the particular needs of owners / guardians of listed, historic or heritage buildings/sites.
In addition to the structural insurance we can accommodate insurance for loss of revenue, employers’ and public liability, as well as the usual range of cover required for any business being operated within.
Cover for irreplaceable art, antiques and contents can be included for their full value.
As well as the obvious – castles, forts, ancient monuments etc. – we can consider insurance for heritage pubs and hotels; shops; museums; visitor centres; historic houses; stateley homes; country mansions; art galleries, restaurants; lighthouses; dockyards; windmills; piers; walls; theatres; libraries; concert halls; almshouses; tithebarns etc. Visitor attractions (including caves and gorges, roman baths/villas etc); modern iconic buildings; converted factories, warehouses and docks, converted churches; interactive museums; model villages; and fine art collections, preservation trusts and societies can also be accommodated.
Listed, historic and heritage properties present their own problems when it comes to the dealing with and settlement of claims.
Very often, repairs to listed, historic and heritage properties will involve the need to source specialist building firms and tradesman.
Repairs may need to be carried out using appropriate materials and specialist insurers have access to these companies.
Claims guidance is sympathetic to restoring your property to maintain the integrity of its historic or listed nature. Additional covers include archaeological costs covered under the Planning (Listed Building and Conservation Areas) Acts 1990.
As the owner or guardian of a listed property, under-insurance is the major headache when arranging insurance. Listed buildings must be repaired to the satisfaction of the appropriate external body and it is essential the sums insured are adequate otherwise the owner/body repsonsible may be held liable for any further funds required to complete the repair.
When it comes to adequacy of sums insured for listed buildings, historic structures and heritage properties, Rowlands & Hames are able to, in most cases, obtain the services of a specialist listed building surveyor to provide a free valuation. Often valuations can run into the thousands of pounds but certain specialist insurers will provide the service free.
A valuation provides adequate protection and peace of mind for clients, allowing a quicker and less contentious claims settlement and fewer issues with English Heritage and any Trustees/Owners.
All forms of listed, historic and heritage buildings and structures accommodated
To discuss your requirements and obtain a quotation, please contact:
Heritage properties and fine art are at risk from malicious damage and theft
We recommend the following action to help reduce the risk of them happening to you.
There is nothing new about using art to promote a cause. In the last couple of hundred years objects as diverse as the Portland Vase and Velasquez’s ‘Rokeby Venus’ have been damaged in high profile attacks.
Within the last 12 months there have been three highly publicised incidents:
tick.gif At Tate Modern to Rothko’s ‘Black on Maroon’
tick.gif In Westminster Abbey to a portrait of the Queen
tick.gif In the National Gallery to arguably its most well-loved British picture, Constable’s ‘The Hay Wain’.
With an estimated £100 million worth of artwork stolen every year within the UK it is clear that this sector is faced with considerable risks from theft. Last year we became aware of a trend in the theft of Chinese artefacts and this year the trend has continued.
You should be alert to anyone acting suspiciously whilst visiting your premises, including members of the visiting public and casual labourers.
Identify the risk
All operators of heritage properties should assess the risks and introduce suitable levels of security to combat them. Each risk needs individual consideration incorporating elements of staffing/stewarding and physical and electronic security measures. It’s worth reviewing existing security arrangements to see if the introduction of additional controls could prevent you being targeted. Special attention should be paid to well-known works which may be targeted.
You shouldn’t overlook the fact that theft can also result in considerable damage to your buildings, as well as the loss of valuable art work.
Exercise increased vigilance around the management of contractors
tick.gif There should be clear signs directing contractors/visitors to a reception area
tick.gif Other access points to the property should be locked or supervised
tick.gif Proof of identity should be obtained from contractors who are unfamiliar to you.
tick.gif Unless contractors are going to be supervised, identity badges should be issued on arrival and collected at departure
tick.gif Details of contractors’ vehicles, and their arrival and departure times should be recorded.
It’s not practical to screen every visitor to your property but you should review stewarding arrangements when open to the public, particularly areas where there is a high concentration of and/or potentially vulnerable artwork. Brief your staff on what to do if they see someone acting suspiciously.
Protecting works of art from damage and theft is never easy, a balance needs to be achieved between display and security.
It also pays to be alert to potential threats in the wider surrounding area e.g. influx of visitors perhaps attending a nearby event or unfamiliar vehicles in the locality. Experienced criminals often check out premises before taking action, so be vigilant and report any suspicious activity to the police.
Rowlands & Hames would like to thank Ecclesiastical Insurance for the above risk management advice.