Mortgage brokers regularly speak to clients who are focused on the obvious household costs: mortgage payments, energy bills, council tax. Home insurance often gets treated as a simple renewal.
The problem is that small details in a home insurance policy can make a big difference at the point you need to claim. And when those details are wrong, it can lead to an expensive shortfall.
How Much Does Home Insurance Cost in 2026
Home insurance premiums vary significantly depending on where you live, the type of property you own, your claims history and the level of cover you choose.
Current market data suggests the average annual cost of a combined buildings and contents policy is around £250, although your own premium could be higher or lower depending on your circumstances1.
Buildings insurance is also a condition of most mortgages and needs to remain in place for as long as you have a loan secured on your home
The Common Mistake We See
One of the most common issues we see is confusion between what a home is worth and what it would cost to rebuild.
They are not the same.
The rebuild cost is the amount it would take to reconstruct your home from scratch, including labour, materials and professional fees. If this figure is too low, you could be underinsured. Under insurance matters because it can affect how much an insurer pays out after a claim. In some cases, it may mean you have to fund part of the repair or rebuilding costs yourself.
This can happen gradually if your policy has not been reviewed for several years, especially if building costs have increased or if you have made improvements to your property.
Weather, Water and Real-World Claims
Homeowners often assume home insurance is mainly for major incidents. In practice, many claims involve everyday events that can still be costly.
Storm damage, flooding and escape of water incidents remain among the most common causes of significant claims2. The key point is that policy wording, exclusions and excesses can vary, so it is worth understanding the detail before you ever need to use the cover.
Why Home Insurance Comes Up When We Review Your Mortgage
When your mortgage is reviewed, particularly as you approach the end of a fixed-rate deal, we often discuss home insurance too. This is not about creating extra products. It is about making sure the protection around your home remains appropriate and offers fair value.
That typically means checking the points that most often cause issues later, such as:
- The rebuild cost used for buildings cover
- Limits and exclusions, including accidental damage and escape of water
- Excess levels and whether they remain affordable
- Any limits for high-value items within contents cover
- Whether the details on the policy still match your situation
If we arrange insurance for you, we will always explain the key features and limitations, and we will be transparent about any fees or commission. If you prefer to arrange insurance elsewhere, that is entirely your choice.
What We Suggest You Check This Year
If you have not reviewed your home insurance recently, these are sensible areas to look at:
- Whether your rebuild cost figure is still accurate
- Whether your contents cover reflects what you actually own today
- Whether any policy limits apply to items such as jewellery, watches or bicycles
- The excess you would pay if you made a claim
Taking a few minutes to review these points can help you avoid unpleasant surprises later.
In Summary
Home insurance is there to protect you from financial shock. Having cover in place is essential, but having the right cover matters just as much.
If your mortgage deal is ending this year, or you have not reviewed your home insurance for a while, it may be a good time to check that your policy still matches your property and your circumstances.
References:
- MoneySuperMarket Home insurance facts, trends and stats – 2026Available at: https://www.moneysupermarket.com/home-insurance/home-insurance-statistics/ [Accessed 26 Jan. 2026].
- Confused.com (2025). UK home insurance claims data. Available at: https://www.confused.com/home-insurance/home-insurance-claims [Accessed 26 Jan. 2026].
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
All the information in this article is correct as of the publish date 29th January 2026. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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