The digital transformation of home insurance has made buying cover faster and more accessible than ever. But as more business moves through comparison websites and other online channels, the question is whether consumer understanding has kept pace with convenience.
Fresh research highlighting uncertainty around contents valuations has renewed concerns about underinsurance and the extent to which consumers understand the cover they are buying. According to RebuildCostASSESSMENT.com, which analysed data from 43,000 comprehensive property assessments, 93% of UK properties are insured for the wrong amount, with 70% underinsured and 23% overinsured.
The findings raise a broader question than whether consumers are simply buying the right policy. They also prompt a reassessment of how advice is delivered and demonstrated in an increasingly digital market.
Graeme Trudgill, chief executive of the British Insurance Brokers' Association (BIBA), said insurance remains a complex product that cannot always be reduced to a price comparison.
"We will always remind people that an insurance policy can be a complex product, which is why it is important that they buy the cover that meets their own individual needs and circumstances," he said.
"Someone's insurance policy should focus on suitability, not simply the lowest price. An insurance broker can assess those needs, offer advice, give guidance on calculating sums insured and find you a suitable, affordable policy.
"Online sites undoubtedly offer lots of choice but many people either do not have the time or knowledge to make sure the policy is right for them. We are working with others in the sector, including comparison websites, to make information clearer and also to encourage the practice of signposting consumers, especially those with more complex needs, to a service like the BIBA Find Insurance Service."
Rather than framing comparison sites as competitors, Trudgill's comments point to a wider industry challenge: ensuring customers understand increasingly complex insurance products regardless of where they purchase them.
Charlie Hicks, managing director of EIC Insurance Services, believes the industry also has a responsibility to adapt.
Rather than viewing comparison websites as the problem, he argues the industry has not always done enough to articulate the value of professional advice. Hicks likens it to using an accountant. Most business owners could file their own accounts, he argues, but choose not to because they recognise the value of professional expertise. The parallel with insurance, he suggests, is clear. If the value of advice is not communicated effectively, customers are more likely to view policies as commodities and make decisions based largely on price.
That shift is reflected in the conversations Hicks now has with clients. He said customers frequently approach brokers with policies that no longer reflect changes to their circumstances. Home extensions, valuable purchases, long periods of unoccupancy or other lifestyle changes can all leave a policy that was once appropriate no longer fit for purpose.
The conversation, he argues, is less about finding the cheapest premium than understanding how a client's risk profile is changing.
"Price is going to be one of the three," he said. "But it's not the only thing. They want to make sure claims are paid. They want to know that if they have got a claim, the service is excellent. They want to know the coverage is there for them."
Those conversations increasingly focus on future changes as well as current needs, including planned renovations, major purchases and other developments that could affect the suitability of cover. They are discussions that are difficult to replicate through a purely transactional online buying journey.
Hicks also sees a structural change in the market. As local independent brokers have disappeared from many communities, more consumers have gravitated towards digital purchasing, not necessarily because they prefer it, but because personal advice has become less accessible.
The debate comes as the market continues to grapple with underinsurance following the sharp rise in rebuilding costs since the pandemic. The ABI/BCIS House Rebuilding Cost Index recorded a 3.8% increase between December 2024 and December 2025, underlining why many brokers believe annual index-linking alone may no longer be enough to keep sums insured aligned with rebuilding costs.
Hicks believes greater awareness of underinsurance has emerged in recent years, but argues the industry itself must accept some responsibility for improving consumer understanding.
"I don't blame a consumer for that," he said. "I blame the industry for not making it clearer to consumers that we need to do more."
The issue also carries a regulatory dimension. The Financial Conduct Authority (FCA) is continuing to examine how home and travel insurance sales affect consumer outcomes following a super-complaint submitted by Which? in 2025. Among the issues under consideration is whether consumers properly understand policy cover, exclusions and limitations before purchasing. That reinforces the importance of demonstrating the value of advice while supporting good customer outcomes under Consumer Duty.
The discussion extends well beyond comparison websites or underinsurance statistics. As personal lines distribution continues to evolve, the commercial challenge is increasingly clear: advice cannot simply add value, it has to demonstrate it.
