Underinsurance is an issue that has long plagued the issue, with the FCA looking to address it in recent thematic reviews
Up to 10 million UK homeowners could be underinsuring their property, a study by UK insurer SunLife has found.
The study found that 67% of homeowners did not know the cost to rebuild their home, and 35% incorrectly assumed it was the same cost as the value of their house.
Similarly, it found that only 8% of property owners in the UK get a detailed valuation before they insure, with 30% leaving the worry and hoping the insurer will estimate it for them.
SunLife director of insurance Simon Stanney said: “In the unfortunate event that your home requires a complete rebuild and your buildings insurance is not sufficient, you will be left to cover any difference in price.
“Worse still, if your property is mortgaged you could be left with no home and thousands to pay back to your lender.”
Earlier this year, SunLife launched a home insurance product ranged, brokered exclusively by Brightside.