As insurance renewal season approaches, landlords and property investors are being urged to review the sums insured on their properties to avoid underinsurance or unnecessary premium costs. Research by RebuildCostASSESSMENT.com shows that 93% of UK properties are insured for the wrong amount, a situation that could leave investors exposed in the event of a major loss.
Rising rebuild costs and tighter insurer scrutiny make renewal reviews essential. The company’s latest construction cost update indicates that average rebuild costs are 3–5% higher year on year, with variations depending on region and building type. Many policies, however, remain indexed at lower rates, leaving a significant gap between cover and actual replacement costs.
“Renewals shouldn’t be a box-ticking exercise,” said Sharon Masters, technical lead and surveyor at RebuildCostASSESSMENT.com. “They’re a financial checkpoint and an opportunity to make sure cover genuinely matches the cost of reinstating your property.”
Risks for landlords go beyond underinsurance. Properties with extensive refurbishments, or those previously valued using market price proxies rather than rebuild costs, may now be overinsured. The FCA’s Consumer Duty requires insurers and brokers to ensure fair-value outcomes, putting pressure on the market to justify premium levels and coverage accuracy.
To manage these risks, property owners are advised to:
Review sums insured annually, particularly before policy renewal
Commission professional Rebuild Cost Assessments every three years or after major alterations
Share up-to-date valuation data with brokers early to allow proper review and pricing
Maintain a central rebuild cost register for portfolios, ensuring visibility across multiple sites and renewal cycles
“Accurate valuations are the foundation of fair insurance,” Masters added. “When clients get this right, pricing, terms, and peace of mind just follow naturally. As renewal discussions begin for 2026, one rule for property owners stands out: review before you renew. It’s the simplest, most effective way to prevent financial surprises and guarantee that property insurance remains fit for purpose."
