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10 Common Mistakes Homeowners Make When Buying Insurance!
Avoid Common Home Insurance Mistakes Before You Buy or Renew Cover.
Written by Darren Carter. Last Updated on October 12, 2026
The Importance of Choosing the Right Home Insurance.
Home insurance can provide important financial protection if your property or belongings are affected by an insured event. However, the cover available, policy limits, excesses and exclusions can vary considerably.
Choosing a policy based on assumptions rather than its actual terms can create problems later. It is therefore important to understand what you are buying and check whether the cover reflects your property and circumstances.
Learning from Experience: Avoiding Costly Insurance Mistakes
This guide looks at ten common mistakes homeowners can make when buying or reviewing property insurance and explains practical ways to avoid them.
If you need personalised advice about which insurance policy to buy, speak to the insurer or an appropriately authorised insurance broker.
1. Underinsuring the Property
Buildings insurance is normally based on the cost of rebuilding the property rather than its market value. If the building sum insured is too low, underinsurance can create a financial shortfall when a claim is made.
How to avoid this mistake:
- Check that the building sum insured reflects an appropriate rebuild cost rather than the property’s sale or market value.
- For a standard property, a recognised rebuild cost calculator may provide a useful starting point.
- Consider a professional rebuild cost assessment where the property is listed, unusual, substantially altered or otherwise difficult to assess.
- Review the figure at renewal and after significant alterations or extensions.
2. Choosing the Cheapest Policy Without Considering Coverage
The cheapest home insurance quote is not automatically the most suitable policy. Different policies can provide different limits, excesses, exclusions and optional benefits.
How to avoid this mistake:
- Compare policies on a like-for-like basis rather than looking only at price.
- Check which risks are covered and whether any important limits or exclusions apply.
- Compare compulsory and voluntary excesses.
- Check whether optional cover you need, such as accidental damage, is included or available separately.
3. Failing to Understand Policy Exclusions
Home insurance can cover a wide range of risks, but no policy covers every situation. Exclusions, limits and conditions vary, so it is important to check the wording before buying.
Standard UK home insurance commonly covers risks such as fire, storm, flood, subsidence, burst pipes and theft. However, the precise terms and excesses can differ, while cover such as accidental damage may be optional.
How to avoid this mistake:
- Read the main policy exclusions and significant conditions.
- Check any limits that apply to specific types of property or belongings.
- Ask the insurer or broker to explain anything you do not understand before buying.
4. Not Updating the Policy After Home Renovations
Extensions, structural alterations and major refurbishment can change the rebuild cost or risk presented by a property. Some work can also affect the insurance position while construction is taking place.
How to avoid this mistake:
- Contact the insurer before significant building work or structural alterations begin.
- Check whether the work affects the building sum insured or any policy conditions.
- Review the rebuild cost after extensions or other significant alterations.
- Ask whether additional insurance arrangements are needed while major work is underway.
5. Overlooking Contents Insurance
Buildings insurance and contents insurance protect different things. Buildings cover generally relates to the structure and permanent fixtures, while contents insurance covers insured belongings subject to the policy terms.
How to avoid this mistake:
- Estimate the cost of replacing the belongings you want to insure.
- Check the overall contents limit and any single-item limits.
- Check how the policy values or replaces damaged or lost items.
- Make sure higher-value possessions are declared or listed where the policy requires this.
6. Setting the Wrong Excess Amount
An insurance excess is the amount you are responsible for contributing towards an eligible claim. Policies may include compulsory excesses, voluntary excesses or different excesses for particular types of loss.
A higher voluntary excess can sometimes reduce the premium, but it also increases the amount you may need to contribute if you claim.
How to avoid this mistake:
- Choose an excess you would realistically be able to pay following a loss.
- Check both the compulsory and voluntary excess.
- Look for separate excesses that may apply to particular claims, such as escape of water or subsidence.
7. Failing to Disclose Important Information
When applying for consumer insurance, take reasonable care to answer the insurer’s questions accurately and completely. Incorrect information can affect the policy or a later claim, but it does not automatically mean that the policy is invalid.
The insurer’s options depend on the circumstances, including what information was incorrect, whether it affected the underwriting decision and whether any misrepresentation was careless, deliberate or reckless.
How to avoid this mistake:
- Answer the questions you are asked carefully and truthfully.
- Do not guess where important information can reasonably be checked.
- Review the information recorded on the policy documents and correct errors promptly.
- At renewal, check whether any answers or property circumstances need updating.
8. Assuming All Flood or Storm Damage Is Covered
Flood and storm damage are commonly covered by UK home insurance, but that does not mean every form of water ingress, deterioration or weather-related damage will necessarily be covered.
The insurer will consider the cause of the damage, policy wording, exclusions, excesses and the circumstances of the claim.
How to avoid this mistake:
- Check how the policy defines flood and storm damage.
- Review any relevant excesses, exclusions or property-specific conditions.
- If your property has a known flood history or other unusual risk, make sure you answer the insurer’s questions accurately when arranging cover.
- Ask the insurer or broker to explain any restriction that is unclear before buying.
9. Not Reviewing the Policy Annually
Insurance needs can change as a property, household and replacement costs change. Renewal is a useful opportunity to check whether the existing policy still reflects your circumstances.
How to avoid this mistake:
- Review the policy at renewal and after significant property or household changes.
- Check the building sum insured, contents limits, excesses and important exclusions.
- Update relevant information where circumstances have changed.
- Compare available cover as well as price.
- If you want personalised advice about selecting insurance, consider speaking to an appropriately authorised insurance broker.
10. Not Seeking Professional Advice When Making a Claim
Many straightforward insurance claims can be handled directly between the policyholder and insurer. However, independent policyholder-side support may be useful if a claim becomes large, complex, disputed, delayed or difficult to manage.
How to avoid this mistake:
- Understand who has appointed each professional involved in the claim and who they report to.
- Keep claim evidence and important communication organised.
- If you need policyholder-side representation, consider whether an Independent Loss Adjuster is appropriate for the circumstances.
Our guide to what “independent” means in an insurance claim explains the difference between insurer-appointed and policyholder-appointed professionals.
How Independent Loss Adjusters Can Help You With Your Insurance Claim
Insurance Claims Do Not Have To Be Overwhelming
If you need to make a property insurance claim, the level of support required will depend on the type of damage, policy wording and complexity of the loss.
When Independent Loss Adjusters is appointed, we work for the policyholder rather than the insurer. Depending on the claim, our support can include:
- Homeowners: Support with insured property damage such as fire, flood, escape of water, storm, theft and impact claims.
- Landlords: Support with insured rental property damage and related losses where these are covered by the policy.
- Businesses: Support with commercial property damage and business interruption claims where relevant cover applies.
We can review available evidence, help organise claim information, communicate with the insurer where appointed to do so and review proposed settlement terms against the policy wording and supported costs.
Professional claim support does not guarantee that a claim will be accepted or that a settlement will increase. The outcome will depend on the policy wording, evidence and circumstances of the claim.
Our Insurance Claims Management page explains the service, scope and applicable fees in more detail.
Need help with an existing insurance claim?
Independent Loss Adjusters can provide free initial insurance claim advice. We can discuss the current position and explain whether ILA may be able to help.
The initial conversation is free and does not commit you to appointing ILA. If you choose ongoing claims management, the scope of service and applicable fees will be explained before you proceed.
Call 0800 002 5178 for free initial claim advice.
Darren Carter
Head of Marketing & Technology, Independent Loss Adjusters
Posted by Darren - Over 15 years' experience in online marketing within the insurance claims sector and works with ILA's loss adjusters and claims professionals to turn practical claims knowledge into clear, useful guidance for policyholders.
Customer Testimonials
What Our Clients Say After Working With ILA
When your property claim feels uncertain, it can help to hear from people who have already been through the process. These testimonials show how Independent Loss Adjusters has helped clients deal with insurers, evidence, delays, settlement concerns and the practical steps needed to move a claim forward.
“The insurer was being a nightmare and dragged the case on for months, but in the end, with Glenn’s help and guidance, we received the payout needed to rectify the damage. Without Glenn, we would have only received 20% of the actual costs to restore the damage!”
“What can I say about this Company, nothing but AMAZING. We felt like they were our friends, totally on our side. The communication is just fantastic and they just keep going and going to the end.”
“Thoroughly investigated my issues with my insurers and loss adjusters. Took all the pressure off, kept us informed on every step along the way. Suggested corrections to the loss adjusters, which were accepted, and finally achieved a settlement figure almost twice the amount originally offered.”
“Mike and his team are an essential if you have to make a claim against your insurance. I have engaged ILA on a number of occasions and they have delivered every time.”
“Michael dealt with our case in such a very professional manner, providing excellent advice and valued assistance. What really mattered here was Michael had a real connection to us, offering true empathy to our case and real sincere desire to help us to the best of his ability.”
“Michael will do the job to the end he is a professional in his work. Thanks to his team all my problems were solved.”
These testimonials describe individual clients’ experiences. Outcomes depend on the policy wording, evidence and circumstances of each claim.
More Insurance Tips and Advice
The Hidden Costs of Property Damage That You Should Be Aware Of
Property damage can create costs beyond repairs, including temporary accommodation, storage, drying, loss of rent and business interruption where the policy may provide cover.
What To Do If Your House Is Flooded
What to do after a house flood, prioritising safety, documenting damage, contacting your insurer and protecting evidence before major cleaning or repair work begins.
Is Your Insurance Claim Becoming Difficult?
Claim rejected, delayed, under investigation or offered a settlement you’re unsure about? Our guide covers what to check next, underinsurance and help with an existing claim.
Explore Common Claim Problems
Loss Adjuster Support
Understand the difference between insurer-appointed and independent loss adjusters, what each role involves and when independent claim support may be appropriate.
Loss Adjuster Guides
Guidance on Making a Claim
Practical guidance on preparing, documenting and progressing an insurance claim, including what to do when questions, delays or disputes arise.
Making a Claim Guides
Insurance Terminology
Clear explanations of common insurance terms, policy wording and claims terminology to help you understand correspondence, decisions and the claims process.
Insurance Terminology GuidesCLEAR, PROFESSIONAL CLAIM SUPPORT
Why Policyholders Speak to ILA
A difficult claim often involves policy wording, technical evidence, repair costs and several parties. Our Loss Adjusters help policyholders understand the position and approach the next step with clearer information.
Policyholder-Focused
ILA is appointed by homeowners, landlords and businesses, not by the insurer handling their claim.
Experienced Claims Team
Our team brings experience across insurance claims, loss adjusting, damage assessment and settlement review.
Evidence-Led Guidance
We review the policy, correspondence and available evidence before explaining what appears clear and what may need further work.
FCA Authorised
Our regulated status supports clear information, appropriate conduct and fair treatment throughout the customer journey.
Independent Loss Adjusters Ltd is authorised and regulated by the Financial Conduct Authority for insurance distribution activities.
Need Clearer Direction on Your Claim?
Tell us what has happened and where the claim currently stands. We will review the initial information and explain whether ILA may be able to help.
Every claim depends on its individual circumstances, supporting evidence and policy wording. No particular outcome can be guaranteed.
PROPERTY DAMAGE CLAIMS
Help with Property Damage Claims
Different types of damage bring different questions about evidence, repairs and cover. Choose the claim type below to see how ILA may be able to help.
Flood Damage Claims
We can help assess water damage, organise the evidence and present the claim under your policy.
Flood Damage Claim Help
Fire Damage Claims
We review the damage, repair scope and reinstatement costs to help you understand the claim position.
Fire Damage Claim Help
Business Interruption Claims
We assess the interruption, financial records and policy position when insured damage affects trading.
Business Interruption Help
Malicious Damage Claims
We review the damage, circumstances and evidence after vandalism or deliberate damage.
Malicious Damage Claim Help
Impact Damage Claims
We can assess collision or impact damage and review the repair evidence and settlement position.
Impact damage claim help
Theft Insurance Claims
We help organise supporting evidence and review the claim position after burglary or theft.
Theft Claim HelpRequest Free Initial Insurance Claim Advice
Tell us what happened and where your claim stands. The initial conversation is free and without obligation. We’ll ask a few questions and explain whether ILA may be able to help. You can call us or complete the form; we’ll contact you using the details you provide.
If you choose ongoing support, we’ll explain the service and fee before work begins. Our general fee is 10% plus VAT of the overall settlement. Where you appoint ILA’s recommended contractors for the agreed reinstatement works, our fee is generally covered through that contractor route. The position depends on your claim and the proposed work.
What Happens After You Request a Callback?
When we speak, we’ll ask a few initial questions about the damage, your insurance policy and the current position of your claim.
You don’t need to have every document ready. The first conversation is simply to understand what has happened and whether we may be able to help.
If you’d prefer to speak to us directly, call 0800 002 5178.
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