Home insurance
Rebuild cost is not the same as market value
Some UK homeowners may be underinsured because the cost of rebuilding a property can be very different from its market value.
Holly DibdenMortgage Adviser · 3 July 2026
The important points
What to take from this update
- Market value includes factors such as location and local demand.
- Rebuild cost concerns materials, labour, demolition and professional fees.
- An inaccurate figure can affect whether a claim is fully covered.
HD Holly’s take
“The figure used for buildings insurance deserves a proper check rather than a guess based on the purchase price. If you are unsure, use an appropriate rebuild-cost tool or speak to an insurance professional.”
Is this relevant to your plans?
News is useful context, but it cannot account for your income, deposit, credit history, property or existing mortgage. If this update has raised a question, send Holly a quick message and explain what you are hoping to do.
Ask Holly on WhatsAppInformation correct at the date of publication and provided as a general guide only. Mortgage products, criteria and market conditions can change. This article does not constitute personal advice.