At a glance

RebuildCostASSESSMENT, a UK insurance valuations provider, warns homeowners and landlords that property alterations, such as extensions or upgrades, can impact rebuild costs and potentially invalidate existing insurance assessments. With a significant number of UK properties inaccurately insured, the company advises reviewing rebuild costs every three years or after major changes to ensure accurate insurance coverage. This is crucial to avoid being underinsured or overinsured, which could affect claims.

Properties change over time. Homeowners or landlords may add an extension, upgrade a kitchen or bathroom, alter the layout, or even change how the building is used, but when do those changes mean it’s time for a new rebuild cost assessment? According to RebuildCostASSESSMENT, the UK’s leading insurance valuations provider, there are several key triggers to look out for when deciding whether a property’s insurance cover may need an update.

Johnny Thomson, Head of Strategic Planning at RebuildCostASSESSMENT.com said “One of the most obvious reasons to review the property’s rebuild cost is if significant alterations have been made. These could include adding an extension, converting a loft, changing the roof or altering the internal layout. It’s changes like these that could affect the cost of reinstating a property and invalidate the previous rebuild cost assessment, which may no longer accurately reflect the building as it stands today.”

With nine out of ten UK properties inaccurately insured, according to the company’s own research, carried out earlier this year, 67% of UK properties are underinsured and 25% overinsured with only 8% accurately insured, the need to stay on top of the rebuild cost is ever more important.

What about refurbishments and upgrades?

However, it is not only major structural alterations that can affect the rebuild cost. Refurbishments and upgrades may change the specification of a property and, therefore, the cost of reinstating it. A new kitchen or bathroom, higher-specification finishes, upgraded heating systems or fixed air-conditioning can all affect the rebuild cost.

A change in how a building is used is another important reason to review its rebuild cost. For example, converting an office into residential accommodation could significantly alter the property and its reinstatement requirements. A new occupier may also make substantial alterations or install new fixed equipment. If those changes affect the building, the existing rebuild cost may need to be reviewed.

How often should a property’s rebuild cost be reviewed? Even if there haven’t been significant changes to the property, it’s important to consider the age of your existing assessment. As a general guide, RebuildCostASSESSMENT, recommends arranging a new assessment every three years. Regular reviews help to ensure that the rebuild cost continues to reflect the property and its current reinstatement requirements, rather than its past record.

Johnny Thomson concludes: “The key question to ask is: has the property changed significantly, or is the existing assessment getting older? If there have been changes, it could be time for a new rebuild cost assessment. The most important thing is to stay on the ball and regularly check the age of the last assessment and to consider carefully whether any recent changes made to the property could affect the rebuild cost, in the event of a claim. The best advice is don’t get caught short!”

Editorial insight

With property alterations and refurbishments a routine part of homeownership and property management, the accuracy of insurance cover is an ongoing concern for both homeowners and landlords. While it is well understood that major works can impact a property's value, the implications for insurance rebuild costs are often overlooked, potentially leaving policyholders exposed if their cover does not reflect the current specification of their property.

This reminder from a leading valuations provider highlights the practical importance of keeping insurance assessments up to date, particularly in a market where underinsurance remains widespread. For property owners, the message is clear: regular reviews and updates following significant changes can be essential to avoid financial shortfall in the event of a claim.

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