Brokers placing thatched homes, static caravans, park homes, and beach huts have faced a shrinking pool of willing underwriters for several years. A new three-year capacity deal announced this week gives specialist managing general agent (MGA) Pen Underwriting the backing to write £50 million in gross written premium across these risks, effective September 1.
The capacity comes from Hadron UK Insurance Company Limited, a multinational specialty carrier. The deal covers thatched homes, static and touring caravans, chalets, park homes, and beach huts in the UK, Channel Islands, and Isle of Man, with Flood Re eligibility across all in-scope properties. Pen Underwriting has operated in the thatched and leisure segment for 25 years.
The timing points to conditions in a market that has contracted over recent years. Average premiums for thatched properties rose from £598 in January 2022 to £2,404 by January 2026, according to Compare the Market data, a rise of more than 300% in four years. Several carriers exited the segment during that period as claims costs outpaced premium income.
The pressure stems from the severity of thatched property claims rather than their frequency. Fire losses on thatched homes can reach into the hundreds of thousands of pounds against a £30,000 to £40,000 average for standard homes. Around 80% of Britain's estimated 60,000 thatched properties are also listed buildings, which adds specialist materials, heritage labour, and planning consents to rebuild costs.
Nationwide's switch of its home insurance underwriting from RSA to Aviva in September 2025 showed how fast retail capacity can disappear for these risks. Hundreds of thatched homeowners were told their policies would not be renewed because the properties fell outside Aviva's criteria.
For brokers, that pattern of mainstream withdrawal means more clients arriving in the specialist market at short notice. Many have limited experience of what cover is available or what risk management steps are needed. Pen Underwriting's proposition uses surveys, inspections, and targeted support to manage fire and flood risk before a claim occurs rather than simply offering a higher-priced policy.
Leo Downes, head of household and personal lines at Pen Underwriting, said the segment demands "rigorous risk management, quality data, specialist expertise and a proven track record."
Colin Johnson, international CEO at Hadron, said thatch and leisure is "a class of business where real underwriting judgement matters more than a standard rate table." The point is instructive: automated pricing models struggle with the severity and rebuild complexity of non-standard construction, so capacity in this segment depends on underwriters who assess risk individually.
The confirmed three-year term gives brokers a degree of certainty on a line that has been subject to abrupt capacity changes in both directions.
