--- title: "Construction Costs Rise: Impact on Property Insurance Claims" description: Learn how rising construction costs affect property insurance claims in the UK. Discover ways to ensure your coverage reflects current rebuilding costs. image: https://www.actioninsurancerepair.co.uk/hubfs/Imported_Blog_Media/Property%20Insurance%20Claims.webp --- [Skip to main content](https://www.actioninsurancerepair.co.uk/blog/the-impact-of-rising-construction-costs-on-property-insurance-claims#main-content) [![AIR-Logo-vector-trans](https://www.actioninsurancerepair.co.uk/hs-fs/hubfs/AIR-Logo-vector-trans.webp?width=170&height=120&name=AIR-Logo-vector-trans.webp) ![AIR-Logo-vector-trans](https://www.actioninsurancerepair.co.uk/hs-fs/hubfs/AIR-Logo-vector-trans.webp?width=170&height=120&name=AIR-Logo-vector-trans.webp)](https://www.actioninsurancerepair.co.uk) - [About us](https://www.actioninsurancerepair.co.uk/about-us) - Show submenu for What we help with What we help with - [Flood damage repairs](https://www.actioninsurancerepair.co.uk/flood-repairs) - [Fire & smoke damage repairs](https://www.actioninsurancerepair.co.uk/smoke-fire) - [Water damage repairs](https://www.actioninsurancerepair.co.uk/water-damage-repairs) - 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[Tips](https://www.actioninsurancerepair.co.uk/blog/tag/tips) - [For Homeowners](https://www.actioninsurancerepair.co.uk/blog/tag/for-homeowners) - [Water Leaks](https://www.actioninsurancerepair.co.uk/blog/tag/water-leaks) - [Fire & Smoke Damage](https://www.actioninsurancerepair.co.uk/blog/tag/fire-smoke-damage) - [Flooding](https://www.actioninsurancerepair.co.uk/blog/tag/flooding) - [News](https://www.actioninsurancerepair.co.uk/blog/tag/news) - [Storm Damage](https://www.actioninsurancerepair.co.uk/blog/tag/storm-damage) - [Impact Damage](https://www.actioninsurancerepair.co.uk/blog/tag/impact-damage) # The Impact of Rising Construction Costs on Property Insurance Claims ![Joanne Ginty](https://www.actioninsurancerepair.co.uk/hs-fs/hubfs/Joanne/Joanne%20Ginty-4-1.webp?width=120&height=120&name=Joanne%20Ginty-4-1.webp) by [Joanne Ginty](https://www.actioninsurancerepair.co.uk/blog/author/joanne-ginty) 6/23/25, 2:15 PM **With constructions costs continuing to rise in the UK, as a homeowner, you need to consider how this will impact the rebuilding cost of your property (known as buildings sum insured) when it comes to renewing you buildings insurance policy, to make sure that you're properly covered in the event of a disaster.** **Don't worry— at Action Insurance Repair, we're here to break it down for you:** ## **Why Are Construction Costs Going Up?** The increase in construction costs can be attributed to a few key factors: - **Labour Costs** The construction industry has faced a shortage of skilled workers. With fewer workers available, wages have increased – meaning that the cost of hiring skilled tradespeople for repairs or new construction has also gone up. - **Inflation** Inflation affects many areas of our lives, and construction is no exception. As prices rise across the board, whether for fuel, transportation, or other essentials—the cost of building and repairing homes also increases. - **Environmental Regulations** New regulations aimed at making construction more environmentally friendly can add to costs. While these regulations are important for sustainability, they can make both new builds and repairs more expensive. - **Building Regulations** Significant changes to building regulations will take effect on 15th June 2022. New Approved Documents L, F, O, and S detail the improvements needed to increase building energy efficiency and the systems that support it. These documents will represent the new requirements that must be met by new buildings, in order to promote advancements in carbon emissions reduction. ## **How Rising Costs Affect Your Property Insurance** Here’s how these rising construction costs might impact your property insurance: - **Increased Rebuild Costs** If you need to make a claim on your property insurance, whether for damage or a total loss, the cost to rebuild or repair your home will likely have risen. If your policy doesn’t account for these increased costs, you could find yourself underinsured. - **Risk of Underinsurance** Many homeowners may not realise that their insurance policies might not reflect today’s higher construction costs, meaning you might have to cover part of the repair or rebuild costs yourself. - **Higher Premiums** Insurance companies adjust their premiums based on the potential cost of claims. As construction costs rise, insurers may increase premiums to cover the higher costs they anticipate. This means you might see your insurance premiums go up. ## **How to Make Sure You’re Properly Covered** To make sure you’re adequately covered, despite rising construction costs, follow these simple steps **1. Review Your Policy Regularly** It’s a good idea to check your insurance policy at least once a year. This helps make sure it reflects the current cost of rebuilding your home. If you’ve made any upgrades or changes to your property, make sure your insurance policy covers them. **2. Get a Professional Valuation** Consider getting a professional valuation of your property. This will give you a clear idea of what it would cost to rebuild your home today, helping you adjust your insurance coverage accordingly. **3. Look for Index-Linked Policies** Some property insurance providers offer policies that automatically adjust to account for inflation and rising construction costs. These can be a great way to keep your coverage up to date without needing to make frequent changes. Regularly updating a property’s valuation guarantees that insurance remains in sync with its current worth, providing peace of mind and financial security. If hiring a RICS surveyor is not an option, BCIS offers a free calculator to estimate what the sum insured should be: [www.bcis.co.uk](http://www.bcis.co.uk/). ## **How We Can Help** We understand how challenging it can be to deal with property insurance claims after a disaster. If you've experienced damage due to [fire](https://www.actioninsurancerepair.co.uk/smoke-fire), [storm](https://www.actioninsurancerepair.co.uk/storm-damage) or [water damage insurance claim](https://www.actioninsurancerepair.co.uk/water-damage), as home insurance repairs specialists, we’re here to help.  **Contact Action Insurance Repair to find out how we can help you recover and restore your property after an incident. Call** [**01254 665 333**](about:blank) **or email** [**info@actioninsurancerepair.co.uk**](mailto:info@actioninsurancerepair.co.uk) **today.**  **Category:** ![Joanne Ginty](https://www.actioninsurancerepair.co.uk/hs-fs/hubfs/Joanne/Joanne%20Ginty-4-1.webp?width=120&height=120&name=Joanne%20Ginty-4-1.webp) Post by [Joanne Ginty](https://www.actioninsurancerepair.co.uk/blog/author/joanne-ginty) 6/23/25, 2:15 PM Founder and director, Joanne has been living and breathing insurance repairs and property reinstatement for over twenty years. She’s personally involved in each and every project we take on to make sure the repairs are completed to spec and the service you receive is outstanding. ![AIR Newsletter-1](https://www.actioninsurancerepair.co.uk/hs-fs/hubfs/AIR%20Newsletter-1.webp?width=250&height=222&name=AIR%20Newsletter-1.webp) ### Sign up to our newsletter Shared quarterly, the AIR newsletter is packed with customer stories, industry news, and helpful advice that you can action to prevent insurance repair headaches for you and/or your clients. ![action-insurance-repair-logo-favicon](https://www.actioninsurancerepair.co.uk/hubfs/action-insurance-repair-logo-favicon.webp) - - - - - [Client stories](https://www.actioninsurancerepair.co.uk/see-our-work-action-insurance-repair) - [About us](https://www.actioninsurancerepair.co.uk/about-us) - [Blog](https://www.actioninsurancerepair.co.uk/blog) - [Pricing](https://www.actioninsurancerepair.co.uk/pricing) - [Contact us](https://www.actioninsurancerepair.co.uk/contact) - What we help with - [Flood repairs](https://www.actioninsurancerepair.co.uk/flood-repairs) - [Fire & smoke repairs](https://www.actioninsurancerepair.co.uk/smoke-fire) - [Water damage repairs](https://www.actioninsurancerepair.co.uk/water-damage-repairs) - [Storms damage repairs](https://www.actioninsurancerepair.co.uk/storm-damage-repairs) - [Impact & accidental damage repairs](https://www.actioninsurancerepair.co.uk/impact-accidental-damage-repairs) - [Malicious damage repairs](https://www.actioninsurancerepair.co.uk/malicious-damage-repairs) - Who we work with - [Homeowners](https://www.actioninsurancerepair.co.uk/homeowners) - [Commercial property owners](https://www.actioninsurancerepair.co.uk/commercial-property) - [Letting agents](https://www.actioninsurancerepair.co.uk/letting-agents) - [Landlords](https://www.actioninsurancerepair.co.uk/landlords) - [Insurance brokers](https://www.actioninsurancerepair.co.uk/insurance-brokers) - [Leak detection companies](https://www.actioninsurancerepair.co.uk/leak-detection) - [Emergency plumbers](https://www.actioninsurancerepair.co.uk/emergency-plumbers) ©2026 Action Insurance Repair. 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