What happens if what is stated in your policy does not match the Land Registry?

You have a house. You insure it. You pay your policy every year. And, like many people, you think, ‘I'm covered.’

Until disaster strikes.

And then you discover that your insurance doesn't cover everything, that the company applies the dreaded proportional rule, and that the problem stems from something as simple as the declared surface area not matching that of the Land Registry.

Why does that matter? Because it is the root of one of the most common and most expensive mistakes: underinsured insurance.

In this article, we explain what this discrepancy means, how it affects your compensation, and what you can do to avoid having a cheap policy... that is useless when you need it most.

Why is it so important for the insurance to match the Land Registry?

Because the built area declared in your insurance is the basis on which the insured capital is calculated.

And if that figure is lower than the one in the Land Registry — which is the official register — your policy may be miscalculated from the outset.

An error in square metres can result in thousands of pounds lost in a claim.

Let's look at a practical example:

• Actual surface area according to the Land Registry: 120 m²

• Surface area declared in the insurance policy: 90 m²

• Estimated reconstruction cost: £1,200/m²

• Insured capital: £108,000

• Actual capital required: £144,000

• Difference: 25%

If a major incident occurs (fire, explosion, flood, etc.), the insurer will apply the proportional rule and reduce your compensation by 25%.

What is underinsurance and how does it occur?

You are underinsured when the insured capital does not cover the actual value of what you own.

In the case of real estate, this value is calculated according to:

• Total built area (according to the Land Registry or deed)

• Reconstruction cost per square metre

• Quality of materials and finishes

• Additional elements: garages, storage rooms, swimming pools, porches, etc.

If any of this information is not declared correctly —especially the square metres— the result is an incorrectly calculated insurance policy.

Why is there such a big difference between the insurance and the Land Registry?

The most common reasons:

• Old policies that have not been updated over time

• Undeclared renovations or extensions (enclosed porches, added garages, etc.)

• Errors when filling out the initial questionnaire

• Malpractice to reduce the cost of insurance by declaring less

• Taking out insurance without technical advice

The worst thing is that often even the insured person is unaware of this.

What are the consequences of underinsured insurance?

• Reduced compensation: if there is a claim, it does not cover even half of the actual cost.

• Application of the proportional rule: the insurer calculates the percentage of underinsurance and applies it to the reduction.

• Conflicts and claims: because you thought you were covered, but you are not.

• Serious financial losses: in cases of total fire, flood or structural damage.

What is the proportional rule?

A formula used by insurers when they detect underinsurance:

Compensation = (Insured capital / Actual insured value) × Damage suffered

In other words, if you insure 70% of the actual value, you will only be paid 70% of the damage, even if you have paid all your premiums on time.

How do you know if your policy matches the Land Registry?

1. Go to the Land Registry website

2. Search for your property using the cadastral reference or address

3. Check the total built area

4. Compare it with the area declared in your policy

5. Check whether any annexes such as a garage, storage room, swimming pool, etc. have been included.

If there are any differences, you are clearly underinsured due to a miscalculated policy.

What can you do if you already have an underinsured policy?

Review the policy with the help of a professional.

Request an independent expert valuation.

Update the insured capital to the actual values.

Request that all omitted items be included.

Make a claim if the underinsurance has caused you harm in a recent accident.

At MataSeguros, we help you detect errors in your policy and make a claim if your compensation has been unfairly reduced.

Would you like us to review your case? Contact us for free.

What if the error was not your fault?

In many cases, the insurance was taken out through a comparison website, an agency or an insurer that did not ask the right questions.

This does not exempt you from liability, but it can help you in negotiations or claims, especially if you were not properly informed.

That is why it is important to keep:

• The initial form or questionnaire

• Emails or proof of how the policy was taken out

• Details of the advisor or sales channel

What happens if you have already suffered a loss and there are discrepancies?

• The insurer may request a report from the loss adjuster to verify the actual surface area.

• If they detect differences with the Land Registry, they will apply the proportional rule.

• You can provide evidence to justify that you are indeed properly covered.

• If you are not satisfied, you can file a technical or legal claim.

At MataSeguros, we have handled dozens of claims for this type of error. We know how to negotiate with the insurer and defend your compensation.

Conclusion

A poorly calculated policy may seem cheaper, but it can end up being very expensive.

Underinsured insurance is one of the most common and invisible mistakes... until there is a problem.

Therefore, check now whether the information declared in your policy matches the Land Registry.

And if there are discrepancies, correct them before it is too late.

📩 At MataSeguros, we help you correct errors and make claims on your behalf if you have already had an accident with underinsurance.

We only charge if you get paid.