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  • Writer's pictureRebuildCostASSESSMENT.com

Is the tide really turning on buildings underinsurance?

A map of the UK, split by country (England, Scotland, Wales and Northern Ireland) showing the percentage of under and over-insurance in each nation. England - 77% underinsured, 19% overinsured. Scotland 72% underinsured, 23% overinsured. Wales 80% underinsured, 17% overinsured. Northern Ireland 83% underinsured, 11% overinsured.

The percentage of UK buildings that are underinsured has fallen to its lowest level for at least 6 years, but remains ‘unacceptably high’, according to the UK’s leading insurance valuations provider.


RebuildCostASSESSMENT.com’s latest annual infographic has revealed that 76% of UK buildings are underinsured. This percentage has fallen from 81% in 2023 and from an all-time high of 83% recorded in 2022.


However, despite the drop, properties found to be underinsured are, on average, still only covered for 63% of the amount they should be. This matches last year’s findings, which were the worst on record.


“The gap between insurance levels and true rebuild cost has widened in recent years due to construction inflation and there are no signs yet that this gap is starting to close,” said Johnny Thomson, RebuildCostASSESSMENT.com’s Marketing and Communications Director.


“However, when we look at our latest 34,000 buildings valuations, we do see signs that the number of underinsured buildings is starting to fall. Is the underinsurance tide turning? Overall, I’d say the jury is still out, but there are some positive signs that the wider availability of lower cost valuations, through desktop assessments, for example, is beginning to have an impact.”


Valuations help

RebuildCostASSESSMENT.com now carries out around 4,000 assessments on properties every month, both remotely and on-site. Formed just 8 years ago, it has become by far the leading provider of building valuations to insurers, brokers and property owners.


“Regardless of the in-roads we’re making, I believe everyone would agree that underinsurance remains unacceptably high,” said Johnny. “The way I see it, on every high street where there’s a mix of commercial and residential properties, or on every industrial estate in Britain, between seven and eight of every ten properties you’ll see there will be underinsured. Around two will be overinsured and only one is likely to be covered for the right amount.


“Valuations are helping a lot, but there’s also a lot more work for us and the insurance industry to do to tackle this problem. Property owners expect claims payments to meet expectations and it is far from a good outcome when this doesn’t happen. There’s an emotional as well financial cost in every case, and this is something we hope to eradicate.”


Regional findings

For the first time, RebuildCostASSESSMENT.com has provided a regional breakdown in its annual infographic this year.


While Northern Ireland shows the highest rate of underinsurance, Scotland reveals a concerning level of overinsurance. It's an uneven landscape, emphasising the importance of staying alert and being proactive in managing building insurance coverage.


A notable change this year is a decrease in residential properties underinsured overall, down to 70% from 82% in 2023. However, the data also shows that, on average, residential buildings are only covered for 52% of their true reinstatement value, compared to 69% for commercial properties.


You can download our 2024 infographic below. This year, we’re also providing a regional breakdown of our data, which you can find, along with an interactive map, by clicking here.  



Let’s tackle underinsurance together. To find out more, visit www.rebuildcostassessment.com today.

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