Challenges of Insuring Thatched-Roof Homes in the UK
In the UK, owning a thatched-roof home presents unique challenges, intensified by a shortage of skilled thatchers and materials. Approximately 60,000 such homes exist, with nearly 42% classified as listed buildings, which restricts owners to specific materials for maintenance. This situation contributes to difficulties in securing home insurance for these heritage properties.
Recent developments have seen Nationwide, following a change in its underwriter from Intact to Aviva, opt not to renew insurance policies for several thatched cottage owners. This decision has led to significant discussions among property owners seeking alternative coverage. Many are exploring new insurance providers, and some report increased premiums despite lacking claim histories, as shared in the "Thatched Roof Owners UK" Facebook group.
Kimberlyn Furst, a homeowner of a grade II listed thatched cottage near Hereford, faced challenges finding insurance. With assistance from The Listed Property Owners' Club, she secured coverage through Prestige. However, her policy includes a clause prohibiting the use of her log-burner due to her chimney’s insufficient height for insurer standards. Altering historic properties requires difficult-to-obtain planning consent, illustrating the constraints homeowners face.
Industry experts indicate rising replacement costs for thatch due to material shortages. The war in Ukraine and successive wet winters have disrupted the supply chain for wheat straw and water reed, escalating expenses. This backdrop has prompted concerns among insurers regarding potential large payouts in the event of fire damage, impacting the underwriting process.
As mainstream insurers hesitate to cover thatched properties, specialty insurers like NFU Mutual, Stanhope Insurance, and Prestige remain viable options. These policies often require stringent compliance with maintenance and safety measures, including regular inspections and use of fire-retardant treatments. Despite higher premiums, insurance remains crucial for protecting these valuable cultural assets.
Repair costs for thatched roofs continue to rise, with rethatching expenses for a large cottage reaching approximately £60,000 plus VAT. This increase is partly due to the declining number of master thatchers, who now command higher wages. The financial burden on homeowners fuels discussions about potential government interventions to assist in preserving these historical buildings.
Marianne Clark, residing in a grade II listed thatched home in Suffolk, underscores the necessity of balancing risk management and cost. She points out that while thatched properties hold historic importance, their maintenance and associated risks necessitate careful financial planning. Insurers like Prestige emphasize that coverage considerations extend beyond the presence of thatch itself, with fire risk, structural complexity, and location significantly influencing pricing. Ensuring adequate safety measures and adopting industry-standard practices remain paramount in obtaining favorable insurance terms.