Homeowners are being warned to update their insurance to prevent surging building costs leaving them seriously out of pocket.
The Society of Chartered Surveyors Ireland (SCSI) is warning that rebuilding costs have jumped by nearly one-third in the past year and a half.
The last 12 months alone have seen costs surge 21% and, if the rebuild value on your insurance premium does not reflect the change, your pay-out in the event of emergency won’t either.
On Breakfast Briefing this morning, Kevin Brady, Chair of the Quantity Surveyors Professional Group in the SCSI, explained what happens when your house is underinsured.
“If your house is insured for €270,000 rebuild value and the reinstatement cost of your house is 360,000, in the event of a total loss situation, the homeowner will only receive €270,000,” he said.
“It is key that homeowners are fully and adequately insured and we do recommend that homeowners re-evaluate their insurance particularly now that our guidance is published.
“In the instance of partial loss as well, the same piece applies that if your home insurance is underinsured, you will only receive the sum insured.
“That has a significant effect and I think for peace of mind, people should go to the website. We have a calculator on the website that will take you through step by step to re-evaluate your rebuild value to make sure you are adequately insured in the event of such a scenario.”
According to the latest SCSI House Rebuilding Guide the increase in rebuild costs over the last year range from 14% in Dublin to 26% in the north-west.
In Dublin, the cost of rebuilding a standards three-bed semi-detached house has gone up by €44,000.
In Cork, it is €48,500, in the North-west it is €55,000 and in Waterford it is nearly €57,000 – the highest rise in the country.