Home insurance renewal in July 2026: rebuild sums and loyalty penalties
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Buildings sums insured should match rebuild cost — not market value — via the ABI calculator. The FCA banned loyalty penalties in 2022, but comparing at renewal still saves money on combined buildings and contents policies.
By Money Guide editorial team
Published:
Home insurance is not legally required unless you have a mortgage — but lenders insist on buildings cover for the rebuild sum. Contents cover is optional but protects belongings against theft, fire and flood.
Under-insuring buildings means insurers can apply 'average' and pay only a proportion of claims. Over-insuring wastes premium — sums should reflect rebuild cost, not the price you could sell for.
Accidental damage, legal expenses and home emergency add-ons vary widely. Compare cover sections and exclusions, not just premium. Flood risk and subsidence history affect both price and insurer appetite.
New-for-old contents replacement differs from indemnity policies that deduct wear and tear. High-value items — jewellery, bikes, instruments — often need named limits or separate cover.
Claims affect renewal quotes for three to five years. See our compare home insurance guide, buildings vs contents hub and home insurance claims answer.