Buildings Insurance Complaints Highlight Importance of Accurate Rebuild Costs
Recent figures published by the Financial Ombudsman Service have again highlighted the ongoing issue of underinsurance within the property sector, and the importance of ensuring buildings are insured for an accurate reinstatement cost.
Buildings insurance continues to be one of the most complained-about financial products, with a significant proportion of disputes arising where properties have been insured for insufficient rebuild values at the point of claim.
A key issue remains the distinction between market value and reinstatement cost. Market value reflects what a property may sell for, whereas reinstatement cost represents the full cost of rebuilding the property following total or partial loss. This includes demolition, professional fees, materials, labour, and compliance with current building regulations, and can differ significantly from market value.
In practice, reinstatement costs are highly sensitive to change. Construction inflation, regulatory updates, and site-specific factors can quickly render previous assessments outdated, particularly where properties have been extended, altered, or refurbished over time.
Current pressures within the construction sector continue to influence rebuild costs, including:
Ongoing labour and skills shortages
Rising material and trade costs
Increased waste disposal charges
Supply chain volatility
Evolving building regulations and compliance requirements
As a result, relying on historic insurance figures or generic estimates can leave property owners exposed to the risk of underinsurance.
This is where a professional reinstatement cost assessment becomes essential. At Navah Consulting Ltd, we provide detailed assessments for residential properties, taking into account construction type, specification, alterations, and current rebuild cost data to produce a more reliable insurance figure.
Our approach helps ensure sums insured are properly aligned with actual reinstatement costs, reducing the risk of financial shortfalls and disputes in the event of a claim.
About Navah Consulting Ltd
Navah Consulting is a firm of Chartered Building Surveyors and Valuers that specialises in surveying services throughout Hertfordshire, Essex, Cambridgeshire, London, and Suffolk.
We offer a full range of surveys and valuations, including the RICS Home Survey Level 2 (Home Buyer Report) and RICS Home Survey Level 3 (Building Survey). We’re also happy to advise on RICS Valuation, Reinstatement Cost Assessments and Defect Analysis for a range of purposes.
Our Contract Administration services help ensure your project is managed effectively from start to finish.
Navah Consulting aims to provide all services in a straightforward, efficient and client-focused manner. We understand the importance of providing reports and services in a concise, jargon-free format, in a quick time frame. Check out our reviews page here.
Navah Consulting - Surveying Made Simple.
Annual number of cases taken on the Financial Ombudsmen Service by financial year
Annual percentage change, by month
