Case Study: Avoiding underinsurance for a high value home

A Private Client approach to rebuild valuations

When it comes to insuring listed properties, attention to detail is critical. These homes are not only historically significant, but they can also have complex rebuild requirements. This case study highlights how our Private Client team guided a homeowner through the building valuation process for their Grade II listed property.  A rebuild value is an important part of any home insurance policy as if the building sums insured are incorrect the property could be underinsured.

Background

The client was recommended to speak with our Private Client team for a new insurance quote after completing extensive works on their Grade II listed property, which had been in their family since 1768. With no prior experience of building valuation surveys the client was uncertain about the rebuild value.

The Challenge

The initial rebuild estimate provided by the client was £900,000 - significantly below the true cost. Having accurate buildings sum insured is critical as underinsurance can leave homeowners significantly out of pocket in the event of a claim. In more serious cases, if an insurer believes the property was deliberately or ‘recklessly’ underinsured, they may decline the claim altogether.

Approach

Aaron Parsons, one of our experienced private client advisors, undertook a detailed consultation with the client, carefully reviewing:

• The square meterage of the property
• The scope and quality of the completed works
• The implications of the property’s Grade II listing, which typically increases rebuild complexity and cost

Drawing on his expertise, Aaron helped the client assess whether their initial buildings sum insured estimate was realistic, given the nature of the property. He highlighted the importance of accurate valuations and guided the client towards arranging a professional buildings survey to establish a figure.

This approach helped the client better understand their exposure to underinsurance and laid the groundwork for a potential premium adjustment - as the buildings sum insured is a key factor in determining insurance costs.

The Outcome

The desktop survey recommended a reinstatement value of £1.7 million, compared to the client’s original estimate of £900,000 — a difference of nearly 90%.

Conclusion

This case underscores the importance of professional building valuations, accurate rebuild values and the expert consultation required when insuring listed properties. By guiding the client through the valuation our Private Client team ensured a centuries-old family home was correctly insured.