Property owners urged to review insurance policies as cost of rebuilding home goes up
Published 08/07/2015 | 11:33
THE cost of rebuilding a home has gone up, prompting warnings to property owners to review their insurance cover.
Higher rebuilding costs could also lead to an increase in home insurance premiums, experts said.
The Society of Chartered Surveyors Ireland said the national average rebuild costs have increased by an average of 4pc this year in 2015.
Its Guide to House Rebuilding Costs, which is used by homeowners to calculate the rebuilding cost of their home for insurance purposes, shows that costs vary significantly depending on location.
In Dublin, the average rebuilding costs on a standard home increased by 3pc. For a standard three-bedroom semi-detached house that means it now costs €178,000 to rebuild it.
The average minimum rebuilding costs for a standard house in Cork and Limerick increased by 5pc.
Andrew Nugent, president of the Society of Chartered Surveyors Ireland, said: “The key for homeowners is to check that their house rebuilding costs – the reinstatement costs involved in rebuilding a house in the event of a catastrophe such as a fire which are required on all home insurance premiums, are adequate and fully in line with current figures.”
He said homeowners need to check the “sum insured” on home insurance premiums to ensure they are fully covered and not over or underpaying.