UK Property Insurance – What’s Changing in 2026?

Posted January 16, 2026

If you own or manage property in the UK, 2026 is shaping up to be a year where regulation, technology and market capacity collide. For many it’s being badge as “overkill”, that is until they experience; tougher underwriting questions, more documentation requests, higher excesses, policy wording changes, and greater scrutiny around “fair value” in distribution chains that can include Managing Agents.

So, what can we expect to be the big talking points of 2026?

AI is changing underwriting
AI is now firmly embedded into many elements of insurance negotiation and placement. For Property Owners this means tougher, more data-led underwriting. Insurers are likely to expect clearer evidence of rating factors such as maintenance, fire and water controls, surveys and risk management data. Faster claims handling is a potential benefit due to the ease of collating large scales of information, but scrutiny on larger losses will likely also increase. Cyber and data risk will also be on the radar following the large masses of incidents in 2025.

Consumer Duty is moving into enforcement
The FCA’s focus will shift in the coming months from implementation to outcomes, forcing firms to demonstrate their commitment to Consumers. Expect more attention on policy suitability, clarity of cover and “fair value” across the board. For property insurance, especially where leaseholders are involved, brokers and insurers will need to clearly justify recommendations, fees and commissions in a way that has not been seen in the market to date.

PRA stress testing and market resilience
While aimed predominantly at insurers, PRA stress tests regularly influence attitudes towards appetite and pricing. In uncertain economic conditions this can often translate into tighter terms, closer scrutiny of high-severity risks (fire, flood, escape of water etc) and a stronger focus on resilience and loss prevention. As a Property Owner its key you’re working with a broker who is aware of events affecting you even if it seems a few places removed as it will have a direct impact on your ability to retain policies at similar levels of cover and cost.

Leasehold & Freehold Reform Act
Perhaps the biggest and most anticipated change in 2026, buildings insurance is yet again under the spotlight. This act coming into force this year promises greater transparency around insurance commissions and fees, particularly for residential blocks, mixed-use property and for those where a third party such as a Managing Agent are involved. Reiterating the pattern from above, in 2026, expect more challenges on costs and more need to evidence value and risk improvement to the end leaseholder or tenant.

What should property owners be thinking of doing?

With so much change to so many different elements that influence the Property Insurance market, we advise anyone involved in property to think about the following:

• Treat renewals like a fresh risk presentation and work with a strong broker to supply as much information as possible
• Document maintenance, surveys and improvements to show you’re risk conscious and actively looking to avoid claims and maintain your building
• Strengthen water, fire and cyber controls as these are where more and more claims seem to be arising from and where terms will likely be tightened
• Expect greater transparency, especially for residential & mixed-use blocks including conversations with those who are managing property on your behalf to disclose any additional commissions they’re receiving or fees being charged to your occupiers.

At Cape Insurance, we believe 2026 will reward Property Owners who can clearly demonstrate risk management and knowledge value, not just shop on price. Working with a specialist broker such as our team can really set you apart from others who may end up scrambling around, unaware of the upcoming influences to coverage offered this year.

Speak to one of our team to find out how we can help you with your insurance placements through a continuously changing market.