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Insuring a interval property prices TWICE as a lot as a brand new construct… and houses from THIS period are most costly

Insuring a period property costs more than twice as much as a home built after the year 2000, data seen by This is Money shows. 

Buildings Insurance premiums for homes built before the First World War, which are classified as period properties, are approximately £376 per year according to price comparison website Compare the Market. 

This means homeowners are forking out £197 more than the average premium for a home built after 2000, which costs around £179 a year. This is a difference of 110 per cent.

Generally, insurers view older properties as higher risk, which bumps up the premiums.

Although period homes are more expensive to insure, prices are coming down. They dropped 15 per cent year-on-year in February, Compare the Market found. 

This was due to falling inflation, which had brought down the cost of rebuilding projects and materiuals – though this may increase again due to the Iran war.  

Costly: Generally, insurers view older properties as higher risk, which bumps up the premiums

Costly: Generally, insurers view older properties as higher risk, which bumps up the premiums

Which period homes are costliest to insure? 

The most expensive category of period homes to insure are those built during the Stuart period, 1603 to 1714, which cost £545 on average. 

These are followed by Georgian-era homes constructed between 1714 to 1830, which typically cost £446 a year to insure. Tudor homes built between 1485 and 1603 cost less at £418, though these are much fewer in number which may skew the figures. 

Annual insurance premiums for homes built in the period from 1831 to 1836 cost £351 on average, while insurance for Edwardian homes built between 1901 and 1910 comes to £243. 

Insurance for Victorian homes built between 1837 to 1901 generally costs around £252 a year, Compare the Market said. 

Premiums for period homes are often higher as they may feature ‘unconventional’ building materials and outdated plumbing, electrical systems, and roofing, which can often increase the risk of damage and, consequently, insurance claims. Period homes can also carry a higher risk of fire or burst pipes. 

Built before modern electrical safety standards and reliant on ageing plumbing, some period properties are more vulnerable to faults and corrosion-related leaks. 

The distinctive features of period homes can also make them costlier to rebuild, Compare the Market added. Some materials may be harder to source, and repairs sometimes require specialist tradespeople. Listed buildings and higher value homes also attract higher premiums. 

Some older homes may also contain hazardous construction substances, like lead or asbestos, which can be expensive to deal with during repairs or rebuilding. A higher risk of damp or subsidence can also boost premiums. 

Price should not be the sole focus when choosing a policy. Ensure your insurance covers everything you might need. Avoid automatic renewal, pay for your policy annually and shop around to ensure you get the best deal.

Compare the Market’s data was based on quotes given to customers searching for buildings and contents home insurance. 

Amy Rootham, home insurance expert at Compare the Market, said: ‘While period homes are often prized for their character and history, these features can often come with higher insurance costs than newer homes.

‘However, it’s encouraging to see premiums for period homes fall over the past year, in line with wider market trends. 

‘That being said, it’s still a good idea for homeowners to regularly review their cover and shop around to ensure they’re getting the right deal for their needs.’

How to find a new mortgage

Mortgage rates have soared after conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.

If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible.  

This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.

Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.

Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.

This is Money’s mortgage tips 

What if I need to remortgage? 

Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.

Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying arrangement fees. If you do this and don’t clear the fee on completion, interest will be paid on it over the term of the loan.

What if I am buying a home? 

Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people’s borrowing ability and buying power.

What about buy-to-let landlords?

Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. 

> Find your next mortgage deal with This is Money and L&C

Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage