Regional breakdown reveals uneven insurance accuracy across the UK

Please find an article from our colleagues at Rebuildcostassessment.com, UK-based providers of professional RICS‑regulated rebuild cost valuations, used to help property owners and insurers avoid underinsurance.

A new regional breakdown of RebuildCostASSESSMENT.com’s latest data has revealed just how unevenly inaccurate building insurance is spread across the UK, with Wales, the North West and Northern Ireland emerging as some of the areas most exposed to underinsurance.

Based on the latest RCA analysis, 70% of properties in the UK are underinsured overall, while 23% are overinsured. That leaves only a small minority covered for the right amount, reinforcing the scale of the challenge facing both property owners and insurance brokers.

While underinsurance remains the dominant issue nationally, the regional picture shows that risk is far from uniform.

Among the UK regions analysed, Wales records the highest level of underinsurance at 80%, followed by the North West at 77% and Northern Ireland at 75%. At the other end of the scale, the South East and Scotland show the lowest underinsurance rates in the dataset at 65% and 66% respectively.

However, lower underinsurance does not necessarily mean greater accuracy.

Scotland records the highest level of overinsurance among the UK regions at 28%, narrowly ahead of the South East at 27%. This suggests that in some parts of the country, property owners may be paying more than necessary for cover that exceeds accurate rebuild cost.

The findings point to an uneven insurance landscape across the UK, where some regions face a heightened risk of claims shortfalls and others are carrying the cost of inflated premiums.

“Regional differences matter because insurance inaccuracies are not evenly spread,” said Johnny Thomson, Head of Strategic Planning at RebuildCostASSESSMENT.com. “In some parts of the UK, underinsurance remains stubbornly high, while in others, overinsurance is creating avoidable cost pressure. In both cases, the answer is the same: regular, accurate rebuild valuations.”

The regional data also highlights clear differences between residential and commercial properties.

For residential buildings, Northern Ireland records the highest underinsurance rate at 80%, followed by the Midlands at 75%. In contrast, Scotland and London both sit at 61%, the lowest residential underinsurance rates in the UK data.

Commercial properties present an equally concerning picture. Wales tops the table again, with 82% of commercial buildings found to be underinsured. The North West follows at 78%, while London records 76%, showing that commercial risk remains particularly severe in several key parts of the country.

Inaccurate sums insured can have serious consequences. Underinsurance can leave property owners exposed to reduced claims settlements, while overinsurance can mean paying more than necessary year after year.

“For brokers and property owners, relying on historic sums insured is simply not enough,” Johnny added. “A current validation gives a far better chance of getting cover right and avoiding costly surprises when a claim is made.”

The new regional infographic expands on RebuildCostASSESSMENT.com’s main infographic published in September and offers a more detailed view of where insurance accuracy remains weakest.

For brokers, the message is clear: regional context can help identify where clients may be at greater risk. For property owners, it is another reminder that rebuild costs should be reviewed regularly rather than left to drift out of date.

You can find out more about rebuildcostassessment.com here.