Heritage-Listed Former Bank in Regional SA

A landlord approached us about insuring a heritage-listed building in regional South Australia. Originally built in the early 1900s as a bank, it had been converted into a four-bedroom, two-bathroom residential dwelling. The property retained its original character - coffered ceilings, polished hardwood floors, heritage light fittings, and even the old bank safe room still on the floor plan.

The owner had invested in meaningful upgrades including a full rewire, switchboard replacement, and new hot water service. They were preparing the property for lease and needed landlord insurance in place before a tenant moved in.

The property was purchased for a little over $200,000, but the estimated rebuild cost sat closer to $400,000 - double the purchase price.

This property had four factors working against it in the standard insurance market: heritage listing, early 1900s construction, former commercial use, and a regional location. We knew from the outset that most standard insurers would decline.

• Targeted market approach: We identified which insurers would even consider a heritage property in a regional location, rather than wasting time with markets that would decline automatically
• Referral management: When one insurer referred the file for manual underwriting review, we presented the risk properly - including the documented electrical upgrades, switchboard replacement, and current condition of the building
• Sum insured guidance: We flagged that the purchase price and rebuild cost were materially different and ensured the sum insured reflected the actual rebuild exposure, not the purchase price
• Heritage obligation check: We prompted the owner to contact Heritage SA to confirm what restoration obligations would apply in a total loss scenario

Several insurers declined outright. For some, the regional location alone was enough. Others didn't want to deal with the heritage complexity or the non-standard building history.

The biggest technical challenge wasn't just finding cover - it was making sure the cover was adequate. The gap between purchase price ($200,000) and rebuild cost ($400,000) meant that if the owner had set their sum insured based on what they paid, they would have been massively underinsured from day one.

The heritage-listed facade added another layer. In a total loss scenario, the owner may still have obligations to restore heritage elements regardless of the insurance payout. We asked the owner to check with Heritage SA. They confirmed that full restoration to former glory wasn't required in this case - but the key point is that they checked before setting the sum insured.