Listed Building Insurance: Protecting Heritage Properties

What Makes a Building Listed?

In England and Wales, a building is "listed" when it is placed on the Statutory List of Buildings of Special Architectural or Historic Interest, maintained by Historic England (or Cadw in Wales). Listing recognises a building's special interest and provides it with legal protection against unauthorised alteration or demolition.

There are three grades of listing:

• Grade I — buildings of exceptional interest (approximately 2% of all listed buildings)
• Grade II* (Grade Two Star) — particularly important buildings of more than special interest (approximately 6%)
• Grade II — buildings of special interest, warranting every effort to preserve them (approximately 92%)

As of 2025, there are approximately 400,000 listed buildings in England alone. The listing covers the entire building, including the interior, and may extend to structures within the curtilage (boundary) of the property, such as outbuildings, walls, and gates.

Why Listed Buildings Need Specialist Insurance

Listed buildings present unique insurance challenges that standard property insurance policies are not designed to address. The fundamental issue is cost: repairing or rebuilding a listed building is significantly more expensive than working on a modern property, because of the legal requirement to use traditional materials, specialist craftspeople, and conservation-appropriate techniques.

For example, replacing a damaged section of a Georgian sash window requires hand-crafted timber joinery, traditional glazing techniques, and potentially hand-blown glass. A modern uPVC replacement would not be permitted. Similarly, repointing a Victorian brick wall requires lime mortar mixed to match the original composition — cement mortar would damage the historic brickwork and would not receive listed building consent.

Reinstatement Costs for Listed Buildings

Getting the reinstatement value right is arguably the most important aspect of insuring a listed building. The reinstatement cost must reflect the full expense of rebuilding or repairing the property using appropriate materials and techniques, in compliance with listed building consent requirements.

The reinstatement valuation for a listed building should account for:

• The use of traditional and specialist materials (lime mortar, handmade bricks, natural stone, lead roofing)
• The cost of specialist craftspeople (stonemasons, lime plasterers, heritage carpenters)
• Professional fees for conservation architects and heritage consultants
• The cost of obtaining listed building consent for repair works
• Archaeological surveys that may be required before or during works
• Extended build times — heritage repairs typically take longer than modern construction
• Temporary protection and shoring during repair works

A standard reinstatement valuation based on modern construction costs will almost certainly undervalue a listed building. Owners should commission a specialist heritage reinstatement valuation from a surveyor with experience in listed buildings, ideally one who is accredited by the RICS and has specific heritage expertise.

What Does the Policy Cover?

A specialist listed building insurance policy should cover the same core perils as a standard buildings policy — fire, storm, flood, escape of water, subsidence, and so on — but with the additional understanding that repair costs will be higher and the methods more complex.

Key elements to look for include:

• Buildings cover on a reinstatement basis using like-for-like materials
• Cover for the full heritage reinstatement cost, not just modern equivalent
• Property owners' liability cover
• Loss of rent (if the property is let — see our <a href="/knowledge-centre/landlord-insurance-guide">landlord insurance guide</a>)
• Cover for outbuildings and curtilage structures that form part of the listing
• Cover during renovation or restoration works
• Accidental damage cover (particularly important for fragile period features)

Planning and Listed Building Consent

Any works to a listed building that affect its character as a building of special architectural or historic interest require listed building consent from the local planning authority. This applies to both external and internal works, and the requirement exists regardless of whether planning permission is also needed.

Carrying out unauthorised works to a listed building is a criminal offence under Section 9 of the Planning (Listed Buildings and Conservation Areas) Act 1990. This means that even emergency repairs following an insured event must be carried out with appropriate regard for the building's listed status.

Common Challenges

Underinsurance. This is the most common and most serious issue. Many listed building owners insure their property based on its market value or a standard reinstatement calculation, which does not reflect the true cost of heritage repair. If a claim is made and the building is underinsured, the insurer may apply average, paying only a proportion of the claim.

Finding specialist tradespeople. The pool of craftspeople with the skills to work on listed buildings is limited. After a major event — such as a fire or storm — demand for these specialists can exceed supply, leading to delays and increased costs.

Subsidence. Many listed buildings have shallow foundations by modern standards, making them more susceptible to subsidence. Traditional underpinning methods may not be suitable, and alternative techniques (such as resin injection) may require listed building consent.

Flood risk. Many historic buildings are located in river valleys and coastal areas that are now recognised as flood risk zones. Flood resilience measures must be sympathetic to the building's character, which can limit the options available.

Choosing the Right Cover

• Ensure the sum insured reflects the full heritage reinstatement cost
• Check that the policy covers like-for-like materials and specialist labour
• Verify that outbuildings and curtilage structures are included
• Consider accidental damage cover for fragile period features
• Check the subsidence excess — it may be higher for listed buildings
• Ensure the insurer has experience handling listed building claims
• Review the policy annually and update the reinstatement value regularly

Next Steps

Owning a listed building is a privilege that comes with significant responsibility — both to preserve the building's heritage and to ensure it is adequately protected. The right insurance policy is a fundamental part of that protection.

Focus Insurance Services can help listed building owners find specialist cover that reflects the unique requirements of heritage properties. Whether you own a Grade II cottage or a Grade I country house, our team can access specialist markets and arrange cover tailored to your property. If you need to make a claim, our claims guide explains the process step by step.

Contact us for a no-obligation discussion about your listed building insurance needs.