Pressures on construction industry fuel risk of underinsurance
Original Article Summary
The cost of settling property insurance claims has risen since 2021, the Building Cost Information Service (BCIS) warned. Financial Conduct Authority (FCA) data shows that the number of complaints about property insurance have held steady in recent years, with the amount in the first half of 2025 standing just 3% higher than in H1 2021. […] The post Pressures on construction industry fuel risk of underinsurance appeared first on PropertyWire.
PropMatch Curated Analysis
Construction cost inflation is driving widespread property underinsurance, with insurance complaint provisions rising 21% since 2021. Property investors face higher insurance costs and potential coverage gaps as rebuild values outpace insured sums.
Investor Relevance
Critical for all property investors as underinsurance can leave properties inadequately covered for rebuilding costs, while rising claim settlement costs drive up insurance premiums. Investors must regularly review and update insurance valuations to avoid significant financial exposure.
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