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70% of UK Properties are underinsured!

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Underinsurance Remains Widespread - Are You Properly Protected?

Recent reports suggest that UK underinsurance has dropped to its lowest level in six years. However, when it comes to property, the picture is far less reassuring. Insurance valuation specialists RebuildCostAssessment reveal that 76% of UK buildings remain underinsured, with affected owners covered for only 63% of their true rebuild cost on average. This shortfall can leave homeowners and businesses exposed to significant financial risk if disaster strikes.

 

How to Make Sure You’re Properly Protected

Keeping your insurance accurate and up to date is essential. Here’s how to reduce the risk of underinsurance and ensure your assets are fully covered:

1. Update your property valuation regularly
Rebuild costs rise annually due to inflation in materials, labour, and regulations. An up-to-date professional valuation helps ensure your building sum insured reflects true reinstatement costs.

2. Keep receipts for valuable purchases
Store paper or digital copies of receipts for high-value items. These will be crucial if you ever need to make a claim.

3. Maintain a home contents inventory
List your belongings and update your contents cover as needed to reflect their value.

4. Photograph valuable items
Clear, date-stamped images showing the item’s condition can strengthen any future claim.

5. Create a quick video walkthrough
A short recorded tour of your home provides an easy visual record of your possessions.

6. Check single-item limits
Most standard contents policies cap individual item claims at around £1,000. Jewellery, heirlooms, antiques, and other high-value items may need to be listed separately or insured under a specialist policy.

 

Underinsurance may be improving overall, but the risks remain real. Taking a few proactive steps today can help ensure you’re properly protected when it matters most.