Unique risks when insuring heritage assets

The unique risks facing historical buildings and artefacts are in the spotlight this Heritage month, which is observed annually in September in South Africa.

Recently an irreplaceable brass bell was stolen from Groot Constantia, South Africa’s oldest wine-producing estate, with a history spanning over 330 years. The 100kg relic from 1716 was reported stolen from the Hoop op Constantia homestead, declared a National Monument in 1984.

According to Tarina Vlok, MD of Elite Risk Acceptances, a high-net worth insurer and subsidiary of Old Mutual Insure, heritage properties – from Cape Dutch houses in the winelands that were built hundreds of years ago to special landmark sites – are vulnerable to specific risks such as theft, weather-related damage such as fire and flood, and other losses.

“Many of these buildings are at risk simply due to their age, which means they need to be treated differently to modern buildings at all stages by homeowners – from maintenance right through to refurbishments,” says Vlok, adding that buildings with historic value have distinct risk profiles.

“One of the unique challenges of insuring heritage properties is their often-limited availability of replacement parts or restoration materials. This complexity is highlighted by recent historical events.

“The devastating fire at Notre Dame Cathedral in 2019 was a tragedy not only for Paris but for the entire world. This iconic symbol of heritage, history, and culture was severely damaged in just a few hours, highlighting the intricacies involved in insuring such irreplaceable assets. In South Africa, we’ve faced similar challenges, as evidenced by the fire at the University of Cape Town’s Jagger Library in 2021, which destroyed rare and invaluable historical documents. Cultural and historical items are often unique and hold immense value, making their insurance far more complex than standard property or home insurance,” explains Vlok. “A claim that might be straightforward for regular property can become much more complex for heritage sites.”