Introduction
If your property or asset is impacted by a complete or partial loss, you will inevitably look to reinstate it as quickly as possible. Hopefully you have insurance in place to cover such a loss.
But how can you be sure you have the right level of cover?
Reinstatement costs and insurance trends frequently change due to a range of factors. Cost fluctuations, regulatory changes, climate risks and technological advancements all play a role in affecting trends.
Due to the weight of their effects, it is important to understand these changes. This will help you ensure you have the right insurance for your building. It also allows you to check if your building needs a complete rebuild, which can avoid later complications and the incurrence of additional avoidable costs.
At Chawton Hill, we provide reinstatement cost assessments (RCAs) to help protect your investments. Here is an update of the main reinstatement costs and insurance trends for 2026.
Construction Cost Volatility
While construction cost volatility and inflation have had an undeniable effect, BCIS has highlighted that it is not the only factor. Elevated materials costs, labour market pressures, demands for energy-efficient work and regulatory and compliance uplifts continue to increase costs. This means ensuring you have an accurate and regular RCA to inform your insurance requirements should be a top priority when insuring your building.
Underinsurance Remains a Major Concern
Underinsurance is when an insurance policy does not provide a sufficient amount of cover for a potential loss/risk. This is a common problem for property owners and insurers. This BCIS article explains that index linking can help keep insurance values up to date, but it cannot fix an incorrect RCA. That is why checking your property regularly and keeping your information up to date can help you avoid being underinsured. The slightest change in cost volatility (see above) or to the structure and nature of the insured property can affect values.
Climate-related Claims Are Increasing the Pressure
The ABI explained that in 2025 insurers paid out £6.1 billion in property claims due to weather-related issues. Compared to 2024, this was a 14% increase. Without immediate intervention to curb rising temperatures, the increase is likely to persist. This will almost certainly amplify the volume and extent of climate-related claims. Additionally, it may create further rebuilding challenges for property owners facing heavier flood, storm, fire and subsidence losses.
The Guardian’s article on how workplaces in the UK have been dealing with this year’s heatwave reiterates the importance of designing buildings to be properly equipped and insured for these conditions.
Proven Importance
This year, according to the ABI’s records, £846 million in property claims were made across Q1 of 2026. The average household claim was £6,340. As the highest numbers ever recorded, they highlight the critical importance of having the correct cover to protect against potential risks.
Why Regular Professional Assessments Remain Essential
With construction costs, regulations and risks constantly changing, regular RCAs are essential.
At Chawton Hill, our team of RICS regulated surveyors will provide you with accurate, independent reinstatement cost assessments that will help you protect your assets with confidence.
Get in touch with the team today for more, we’ll be happy to help.