Home Insurance

Martin Lewis Home Insurance Tips vs High Value Home Cover

Prestige Cover · Private Client Insurance Guides

Martin Lewis home insurance guidance through MoneySavingExpert is some of the most widely trusted advice in the UK, searched thousands of times every month. Comparing buildings and contents cover annually rather than accepting an auto-renewal, checking your sum insured isn't wildly out of date, understanding your excess: this is genuinely useful for the overwhelming majority of homeowners asking how much home insurance do I need.

There's one area it tends not to go deep on, because it doesn't apply to most readers: what happens when your rebuild cost, your contents, or your property type sit well outside what a standard or "non standard home insurance" policy was priced to handle.

The underinsurance problem hiding behind "just compare"

Comparing quotes assumes the sum insured you're comparing against is roughly correct in the first place. For a large number of UK homeowners, particularly those with older, extended, listed, or architecturally unusual properties, country houses, or period properties, it isn't. The buildings sum insured is often set from a market value estimate, an old mortgage valuation, or an online calculator, none of which reliably reflect what it would actually cost to rebuild the property using appropriate materials and trades.

Under the "average clause" found in most buildings policies, if your home is insured for two-thirds of its true rebuild cost, a claim is typically settled at two-thirds of the loss, not the full amount. A £300,000 claim on a 33% underinsured policy could mean a £100,000 shortfall you weren't expecting.

Where general advice and high value home insurance diverge

This is also where specialist high net worth insurers such as Chubb insurance UK or Hiscox home insurance tend to come into the conversation, since they're built to underwrite exactly these kinds of properties rather than treating them as an exception.

The takeaway

Comparing prices is still worth doing. It just isn't the whole job for a high value or non standard property. The more important question is usually whether the sum insured behind those quotes is actually correct, because a cheaper premium on the wrong figure is a false saving.

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Frequently Asked

Does comparing home insurance quotes still make sense for a high-value property?

Yes, but only once the sum insured is accurate. Comparing prices against an outdated or estimated rebuild figure can mean comparing several equally inadequate policies.

How is rebuild cost different from market value?

Market value reflects what a buyer would pay for the property including the land. Rebuild cost reflects only what it would cost to reconstruct the building itself, which for period or country house properties is often significantly higher per square foot.

How often should a rebuild valuation be updated?

Every two to three years as a baseline, and sooner after any extension, renovation, or significant change in construction costs.

What is non standard home insurance?

It refers to cover for properties that fall outside the criteria mainstream insurers price for as standard: listed buildings, thatched or unusual construction, high rebuild values, or homes with outbuildings and land.