New Infographic Highlights Continuing Property Insurance Crisis
Originally posted on RebuildCostASSESSMENT.com — Updated November 2025
According to data collected from more than 43,000 comprehensive property assessments:
- Only 7% of UK properties are insured accurately
- 70% of properties are underinsured
- 23% of properties are overinsured
While underinsurance remains a concern, there has been some progress. Both the percentage of underinsured properties and the average extent of underinsurance have fallen compared to previous years.
Care Home Facilities at Severe Risk
This year, the data highlights which types of buildings are most at risk. On average, underinsured properties are covered for just 67% of their true rebuild cost — up from 63% in 2024.
Nursing and care homes are particularly vulnerable, with 85% found to be underinsured. This leaves critical care facilities dangerously exposed.
Commercial properties also face substantial risk, with 71% underinsured. Many business owners may be unaware of the potential consequences, leaving them exposed if a major incident occurs.
The Rise of Overinsurance
While underinsurance dominates the headlines, the data highlights a growing problem: overinsurance. Nearly a quarter of UK properties (23%) are overinsured — up from 14% two years ago. These properties are typically insured for around 129% of their actual rebuild costs, resulting in unnecessarily high premiums.
“Encouragingly, we are beginning to see small signs of progress, with a slight drop in both the percentage of underinsured properties and the average shortfall in cover. While underinsurance remains a huge concern, we cannot overlook the growing issue of overinsurance. Both extremes pose financial risks and only accurate, regular valuations can address this challenge,” said Johnny Thomson, Head of Strategic Planning at RebuildCostASSESSMENT.com.
Accurate Valuations Essential to Mitigating Risk
RebuildCostASSESSMENT.com, which recently carried out a record 4,611 property insurance valuations in a single month, stresses the importance of regular and precise assessments.
“Without regular, accurate valuations, property owners and brokers remain vulnerable. Our data clearly shows that effective risk management begins with understanding true rebuild costs,” says Johnny Thomson.
To explore all the insights from the 2025 infographic, click here.
This article is for informational purposes only and was originally posted on RebuildCostASSESSMENT.com.