The importance of reviewing home buildings insurance

April 9, 2025

If there’s one thing we can be sure of, it’s that the many items around us can change. That even goes for the home we live in – we can change address, we can extend or refurbish, we add or take away from its contents, and the home insurance we need can alter quite significantly over time.

That all points to an overriding importance of regularly reviewing your home buildings insurance.

Your review is likely to include a whole host of aspects of your home insurance. You’ll want to make sure not only that everything is covered (and whether big risks such as flooding or subsidence are included), that you have the correct sums insured, and that details such as excess amounts are also acceptable. Let’s look at the main aspects to check:

Where it’s at

• the most critical check, of course, is the identification the property itself – your home buildings insurance relies on it;

• your review of the home buildings insurance involves specifying the correct address, the type of dwelling (whether it’s a house, bungalow, or flat, for example), and any other identifying features;

What’s it worth?

• as with any kind of insurance, your home insurance relies on an accurate estimate of the total sum insured – this is the maximum amount payable under any successful claim;

• home buildings insurance, therefore, anticipates a worst-case scenario in which the entire structure is destroyed, the site needs to be cleared, professional fees are covered, and a new home must be constructed in its place;

• those complete reconstruction costs must be incorporated into the total sum insured;

• the costs will clearly vary over time, so, to make sure that your review keeps the valuation up to date, you might want to refer to the Building Cost Information Service (BCIS) maintained by the Association of British Insurers (ABI);

Combined policies

• your home insurance typically comprises two elements – the building insurance that covers the structure and fabric of the property and (if required) contents insurance that covers the contents;

• you may have separate policies for building insurance and another for contents insurance, or the two may be combined in a joint building and contents insurance policy. Typically, the latter works out more cost-effective than buying two separate, individual policies;

How is your policy arranged?

• clearly, it is important to understand how your home buildings and contents insurance is arranged – and, critically, the start, expiry, and renewal dates of the policy or policies;

• your review might also consider the renewal process you currently adopt and whether you might want to change, for example, any automatic renewal clauses;

Are the excesses acceptable?

• your home insurance invariably incorporates excesses – the first part of any successful claim that must be met from your own pocket;

• different types of claim are likely to attract different excesses (the excess on a subsidence claim, for example, will be considerably bigger than a claim for a lost or damaged household item) – so check that the levels of excess are reasonably acceptable;

• when reviewing the excesses, also take note of any additional endorsements – such as cover for legal expenses or accidental damage (which will also attract their own levels of excess) – and consider whether these remain necessary aspects of cover;

Are your valuables appropriately covered?

• when you set up your home buildings insurance, you probably needed to declare any items of particular value (typically jewellery and other precious collections) which are subject to separate claims limits;

• do those limits remain appropriate, or do you need additional cover? Have you have added to your collection? Or have items have recently risen in value, for instance;

What other exclusions or limitations are written into your home insurance policy?

• check that you understand all the exclusions and limitations which your home insurance and home buildings insurance are subject  to – reviewing any special endorsements or conditions that could affect future claims; and

• understand the risks and perils specifically covered by your insurance policy – these are likely to include – but are not limited to – fire, flood, escape of water, impacts (from vehicles or falling objects), property owner’s liability indemnity, and (possibly) subsidence.

What happens if I am under insured with home insurance?

If you’re underinsured with home insurance, it means the amount you’re insured for what is less than the actual cost to rebuild your home or replace its contents. This can have serious financial consequences if you ever need to make a claim.

Here’s what could happen:

1. You may not receive the full pay out

Most insurers apply what’s called the “average” clause. This means if your property is underinsured, they’ll only pay a proportion of your claim – not the full amount. For example, if your home is insured for only 75% of its rebuild value, your claim could be reduced by 25%.

• Out-of-pocket expenses

If your claim doesn’t cover the full cost of repairs or rebuilding, you’ll need to make up the difference yourself – which could run into tens or even hundreds of thousands of pounds.

• Claims for partial losses can also be affected

Even if the damage is only partial – like a kitchen fire or storm-damaged roof – the same underinsurance rule often applies, reducing your claim pay out.

• Risk of policy cancellation

If insurers find you’ve significantly underinsured – especially if they believe it was intentional – they may cancel your policy altogether or refuse to pay your claim.

Why it’s essential to review your home buildings insurance – and how we can help

Your home and its contents change over time – and so should your insurance. From renovations to new valuables, or even rising rebuild costs, your policy needs to keep up. That’s why a regular review of your home buildings insurance is vital to make sure you stay properly protected.

How we can help

We take the time to review your policy with you, making sure it reflects your current situation and provides comprehensive protection. We can also guide you on rebuild cost estimates using tools like the ABI’s Building Cost Information Service (BCIS), ensure your excess levels are appropriate, and help you avoid costly gaps in cover.

Whether you need a one-off review or ongoing support, we’re here to make home insurance straightforward and stress-free.

Talk to us today on 01702 826060 about reviewing your home buildings insurance.