Wales, North West and Northern Ireland Most at Risk
At iinsure365, we’re seeing increasing evidence that building insurance across the UK is frequently inaccurate, and new data from RebuildCostASSESSMENT.com highlights just how widespread the issue has become.
Their latest analysis shows that 70% of UK properties are underinsured, while 23% are overinsured. That means only a small percentage of buildings are insured for the correct rebuild cost, leaving many property owners exposed to unnecessary financial risk.
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Where Is Underinsurance Highest in the UK?
The data reveals clear regional differences in building insurance accuracy, with some areas significantly more exposed than others:
- Wales: 80% underinsured
- North West England: 77%
- Northern Ireland: 75%
- South East England: 65% (lowest)
- Scotland: 66%
This shows that underinsurance is not evenly spread, and location plays a key role in how accurate a property’s insurance cover is.
Overinsurance: Paying More Than You Need To
While underinsurance is the most common issue, overinsurance is also affecting many property owners, particularly in:
- Scotland: 28% overinsured
- South East England: 27%
In these regions, property owners may be paying inflated premiums for cover that exceeds the true rebuild cost of their property.
At iinsure365, we often find that both underinsurance and overinsurance stem from the same issue: outdated or inaccurate rebuild valuations.
Residential vs Commercial Property Risks
The data also highlights differences between residential and commercial buildings:
Residential Properties
- Northern Ireland: 80% underinsured
- Midlands: 75%
- London & Scotland: 61% (lowest)
Commercial Properties
- Wales: 82% underinsured
- North West England: 78%
- London: 76%
This reinforces that commercial properties are particularly vulnerable, especially in key regions where rebuild costs can fluctuate significantly.
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Why Getting Your Rebuild Cost Right Matters
Incorrect sums insured can have serious consequences:
- Underinsurance can lead to reduced claim payouts, leaving you to cover the shortfall
- Overinsurance means you could be overpaying on premiums year after year
Relying on historic figures or rough estimates is no longer enough—especially in a market where construction costs and materials continue to change.
Our Advice: Review Your Building Insurance Regularly
At iinsure365, we strongly recommend that property owners and landlords review their rebuild cost assessments regularly to ensure their cover remains accurate.
An up-to-date valuation helps:
- Ensure full protection in the event of a claim
- Avoid unnecessary premium costs
Check Your Insurance Cover Today
If you’re unsure whether your property is underinsured or overinsured, now is the time to act.
Get in touch with iinsure365 to review your current policy and make sure your building insurance reflects the true rebuild cost of your property. Call us on 01273 827090 or click here.