Handy Hints for Period Home Insurance

A survey by Yorkshire Bank in May 2008 revealed that for 78% of first-time buyers even the security of a National House Building Council (NHBC) guarantee wouldn't sway them towards buying a newly built home. Those interested in period homes want that original feel and would rather pay a premium for this charm than for a brand new house that's lacking in something period homes have in abundance: character and original features.

However, buying a period home requires a different approach to buying a conventional property – particularly when it comes to home insurance and there are many factors that must be taken into consideration. These include:

1) Is the home listed? If so then if the house is damaged not only will it need to be repaired, but it will also have to be restored to its original condition. Failure to restore a listed home can lead to prosecution, even if you cannot afford to do the work.

2) Have you covered the fabric of the building? According to Period Property UK, 70% of repairs to period homes are undertaken by non-specialist workers using inappropriate materials that can affect the value of a property.

3) Are specialist materials used? Many period homes require aged materials, specialist stonework and trained craftsman, all of which will cost extra money and are rarely covered by conventional home insurance policies.

4) Does your insurance cover administration costs? Arranging for specialist repairs to take place can be expensive. Will your home insurance provider cover these costs for you, or will you have to pay for them?

5) Are you covered for thatch fires? Thatched homes are vulnerable to fire damage – any fire that takes place is likely to destroy the roof altogether. It will be necessary to insure the property against thatch fire and some insurers may insist you take additional precautions such as fitting a lightning conductor.

6) Does the home contain antiques or works of art? Most conventional home insurers will cover items up to a specified limit – typically in the region of £1,500. Anything worth more than this will have to be listed separately on the policy. Several specialist insurers will help you evaluate the worth of items kept in your home so you can be insured in case they suffer damage.

7) Are you covered for burst pipes? Most home insurers cover burst pipes and associated flooding, but what if the pipes are located beneath a slate floor which needs to be broken to gain access? Look for "trace and access" cover to ensure you're safe.

So what should period home insurance cover?

Though it may be possible to cover a period home with a conventional insurer, most property owners are well advised to compare quotes from specialist insurers before settling on the best deal for them.

In particular look out for cover beyond the sum insured and no penalties for under-insurance. If your home needs to be rebuilt it can be difficult to predetermine the costs, so look for a policy that will pay around 125% of the sum insured to provide a safety net. Ideally a building should be covered for full rebuilding value and professional fees; contents should be covered with new for old replacements; and valuables should be insured at market value. Make sure you will not be penalised if estimates are inaccurate.

There are many specialist providers of home insurance for period homes including Axa, Chubb, Hiscox, Oak Underwriting, Zurich Private Clients, William Thatch and Prime Choice so make sure you shop around for cover that provides value for money.