​BLOG

Discover what overinsurance means and how it can cost you. Learn how to ensure your property isn't overinsured and avoid unnecessary premiums.

A bigger cash gap does not always mean a bigger percentage gap. That simple distinction helps explain what indexation updates and what still needs checking at renewal. One figure, two jobs At renewal, indexation updates an existing rebuild figure using the method set out in the policy. It does not check how that figure was calculated or whether the property has changed since it was set. Put simply, indexation updates the number. It does not reassess the property. If the start

The headline rebuild figure is often the first thing a client notices. The rest of the assessment matters too. Reviewing it together gives brokers and clients a practical way to check the property information, understand how the figure was reached and agree what needs to happen next. It can also make the report more useful at renewal and highlight questions for RebuildCostASSESSMENT.com or the insurer. Why review the rebuild cost assessment together? Reviewing the assessment

Construction costs in the UK have not all moved in the same direction during the first half of 2026. Building materials cost more overall than they did a year ago, although some products have fallen in price. Average pay across the construction industry has changed very little. The prices contractors agree for building work are still rising, but more slowly than some of their costs. For brokers and property owners, national figures are a useful guide to what is happening acro

Property values are back in the news following Andy Burnham’s arrival in Downing Street. Before becoming Prime Minister, Burnham called for Council Tax reform and questioned why homes in England are still placed into bands using property values from 1991. News coverage has since explored several possible changes, including updated bands and taxes linked to property or land value. However, at the time of writing, no detailed plan for wider Council Tax reform has been announced

Two historic homes can look almost identical. They may be the same age, similar in size and in the same area. Yet the amount needed to rebuild them after a major fire, flood or other serious damage can be very different. The point that we always come back to is this: The amount a building is insured for should reflect the likely cost of rebuilding it, rather than what the property would sell for. What do “listed” and “heritage” mean? A listed building has legal protection bec

Only 6% of listed buildings are accurately insured, with 79% underinsured and 15% overinsured. In total, 94% were insured for the wrong amount. The underinsurance gap is particularly stark. Listed buildings that were underinsured were covered, on average, for just 64% of their required rebuild cost. “Listed buildings often carry rebuild cost details that are easy to underestimate from an insurance point of view,” said Johnny Thomson, Head of Strategic Planning at RebuildCostA

Every renewal brings the same important question for brokers: is the building sum insured still right? For a client with one property, that can be difficult enough to answer at times. For clients with larger or more varied property portfolios, it can quickly become more complicated. Construction costs are likely to have moved, labour pressures change, and standard indexation may not always reflect the true cost of reinstating a specific building. That is why having a clear re

Energy efficiency upgrades are now a familiar part of property ownership. Solar panels, heat pumps, battery storage, better insulation, triple glazing and sustainable materials are increasingly common in UK homes and commercial buildings. But one important insurance question can easily be missed: if a building becomes greener, would the rebuild cost still cover what it would take to put it back as it now stands? At RebuildCostASSESSMENT.com, we have already looked at how ener

The Building Safety Act 2022 has made rebuild cost assessments more complex for some buildings in England. Today, building safety compliance is an important consideration for affected higher-risk buildings and other complex properties where reinstatement would need to meet current building regulations. “The Building Safety Act has changed the way risk, responsibility and building information are managed for affected high-rise residential buildings,” Gautham Rajendar, Technica

Our latest Infographic found that 93% of UK properties are insured for the wrong amount. The regional breakdown behind that figure shows why location still matters when calculating rebuild value. National figures show the scale of the issue. Regional data helps show where inaccurate sums insured are more common. Local differences in labour, logistics, site access and planning rules can all affect rebuild costs, which is why a national average can miss important local detail.

Rebuild cost accuracy isn’t a one-time exercise. In 2026, with construction costs still elevated and subject to change, the question property owners and brokers are asking is: how often should you review your rebuild cost assessment? “Rebuild values are dynamic,” said Sharon Masters, AIIRSM MARLA TechCIOB, Technical Lead and Surveyor at RebuildCostASSESSMENT.com. “They don’t just move with inflation alone. They can also change with regulation, labour trends, and technology.”

In 2026, rebuild cost accuracy is under pressure from five key areas: labour capacity, regulatory standards, material price variation, property complexity and the age of the valuation. It is no longer enough for a sum insured to look plausible. It also needs to be supported by evidence that reflects current reinstatement conditions. “Rebuild cost accuracy is about more than the price of materials,” said Gautham Rajendar, Technical Lead at RebuildCostASSESSMENT.com. “It’s a co

The conversation around rebuild costs often focuses on underinsurance, but overinsurance can also create unnecessary costs. In 2026, FCA fair-value scrutiny remains relevant, so materially inflated sums insured may need to be clearly justified. “Overinsurance is often overlooked because it sounds safer than being underinsured,” said Sharon Masters AIIRSM MARLA TechCIOB, Technical Lead and Surveyor at RebuildCostASSESSMENT.com. “But in practice, it means a client could be payi

When should a property alteration prompt a rebuild cost assessment? Property alterations can improve a building, but they can also change its rebuild cost. Where works materially affect a building’s size, layout, specification or services, the sum insured may need to be reviewed. “It is a common misconception that smaller renovation projects will not affect the rebuild cost of a property,” said Sharon Masters AIIRSM MARLA, Technical Lead and Surveyor at RebuildCostASSESSMENT.

What is commercial landlord insurance and how does it link to your lease? Commercial landlord insurance covers landlords who let out business premises like shops, offices, warehouses and mixed-use property. It usually covers the building, property owners’ liability and loss of rent. Your commercial lease should say who arranges the cover, how the cost is passed on and what happens if the building is damaged. In many commercial leases, the landlord arranges the buildings insur

A new regional breakdown of RebuildCostASSESSMENT.com’s latest data has revealed just how unevenly inaccurate building insurance is spread across the UK, with Wales, the North West and Northern Ireland emerging as some of the areas most exposed to underinsurance. Based on the latest RCA analysis, 70% of properties in the UK are underinsured overall, while 23% are overinsured. That leaves only a small minority covered for the right amount, reinforcing the scale of the challeng

The UK’s soft insurance market is giving brokers a rare opportunity to address chronic underinsurance, as new industry insight shows the problem is increasingly leading to reduced or declined claims. Research from Aviva’s 2026 Broker Barometer indicates that underinsurance is no longer a hidden issue but one now regularly affecting claims outcomes. Brokers report growing concern that clients are discovering gaps in cover only after a loss, prompting renewed focus on ensuring

Getting the building sum insured right is one of the most important parts of arranging appropriate cover. It is also an area that can easily cause confusion if the basis of the figure has not been clearly explained. At a time when the FCA remains focused on fair value and client outcomes, brokers have an important role to play in helping clients understand what the sum insured is really there for. A building sum insured is not the property’s market value and it is not a figur

Commercial properties across the UK face a growing risk of underinsurance in 2026 as rebuild costs and compliance requirements continue to change. Rising rebuild costs, regulatory change and more complex rebuilding requirements can leave even well-managed portfolios underinsured if sums insured are not kept up to date. “Commercial reinstatement is inherently more complicated than domestic rebuilding,” said Gautham Rajendar, Technical Lead for Commercial Properties at...

Materials inflation has eased. Labour costs remain elevated and that is where reinstatement values can shift most quickly. Recent government data shows materials price growth easing, with the “All Work” materials index rose 3.3% in the year to December 2025. However, construction earnings data and insurer commentary continue to highlight labour shortages and sustained pay growth. Where skilled trades are constrained, repair and reinstatement costs can remain under pressure. “

If you’ve ever seen “desktop” and “site” rebuild cost assessments and thought, “Right… but what’s the actual difference — and does it matter?” you’re not alone. It’s one of the questions we’re most often asked by people coming to us for the first time. And the honest answer is: both options can be the right one – it just depends on the building, the level of complexity, and what you need the valuation to stand up to. What do “desktop” and “site” actually mean? A desktop rebui

In high-net-worth (HNW) property insurance, underinsurance has long been a concern. And rightly so – with 70% of UK properties insured for less than they should be. However, overinsurance is increasingly drawing attention. Many premium homes are insured for more than their true rebuild cost. This means HNW property owners are paying more than they need to for their insurance, while brokers face potential challenges in evidencing fair value under the FCA’s Consumer Duty. “A va

For brokers, 2026 brings a sharper and more personal spotlight on the accuracy of sums insured. Under the FCA’s Consumer Duty and fair-value expectations, brokers must be able to evidence, explain, and defend valuation accuracy within their advice process. Both over and underinsurance create client detriment – one through shortfall, the other through wasted premium – and neither is defensible when proper valuation data are available. “A broker’s duty doesn’t end with arrangin