Property: New Research Reveals Gap Between Actual Rebuild Costs and Insured Value

Some useful research on rebuild costs here;

More than nine in ten properties are insured for the wrong amount, according to the latest annual findings from RebuildCostASSESSMENT.com.

The company’s 2026 Property Insurance Infographic, based on 46,917 rebuild cost assessments carried out across the UK, reveals that just 8% of properties were insured accurately. Some 67% were underinsured, while a further 25% were overinsured.

Underinsurance has fallen each year since 2022, when it affected 83% of properties. Overinsurance has moved in the opposite direction, rising from 13% to 25% over the same period. Despite this shift, accurate buildings sums insured remain rare.

“Underinsurance is falling, which is encouraging. But nine in ten properties are still insured for the wrong amount. That shows why the focus must be on the accuracy of the sum insured, not simply whether the figure has gone up or down,” said Johnny Thomson, Head of Strategic Planning at RebuildCostASSESSMENT.com.

Certain building types remain particularly exposed. Public houses, licensed premises and hotels recorded the highest underinsurance rate, at 85%, with no improvement on 2025. Health centres and surgeries followed at 79%, while offices and nursing homes/care homes were both at 78%. Listed properties also remained heavily affected, with 79% underinsured.

The financial gap has grown too. Across the assessed properties, the combined difference between declared buildings sums insured and assessed rebuild costs reached approximately £20.12 billion, around £2.36 billion higher than in comparable 2025 data. Underinsurance accounted for £15.61 billion, compared with £4.51 billion linked to overinsurance.

Johnny added: “Taken together, these results show what can happen when a sum insured is treated as a number to roll forward, rather than something to review. It may look familiar on a renewal schedule, but a lot can change between assessments. That is why both underinsurance and overinsurance need attention: the aim is to base the figure on the building as it is today.”