A leading insurance assessor has warned that the drive to raise Energy Performance Certificate (EPC) ratings could leave landlords and homeowners seriously underinsured if they fail to update their policies.

RebuildCostASSESSMENT estimates that 76% of UK properties are already underinsured — before tougher EPC rules in England and Wales, or Scotland’s proposed Heat in Buildings Bill, come into force.

Hidden risks behind green upgrades

Energy efficiency retrofits — from high-performance insulation to triple glazing and airtightness works — may cut energy bills, but they also raise rebuild costs. Without notifying insurers, property owners could face reduced payouts if disaster strikes.

A company spokesperson said:  “Energy efficiency upgrades are good news, but the hidden insurance consequences could be serious if insurers aren’t informed. Even a mid-sized retrofit can significantly increase rebuild values.”

Why landlords should pay attention

• Raised EPC standards are pushing many rental property owners to carry out upgrades.

• Underinsurance risks mean landlords could face major out-of-pocket costs after a claim.

• Complex retrofits often involve expensive materials and skilled labour, inflating replacement costs.

Practical advice

Landlords are urged to:

• Commission a rebuild cost assessment after carrying out upgrades.

• Update insurers immediately when specifications change.

• Factor in higher rebuild values when planning retrofit budgets.

The firm stresses that while energy-efficiency reforms are inevitable and beneficial, failing to address the insurance implications could prove a costly oversight.