'Don't overpay insurance' as rebuild costs fall
HOMEOWNERS have been warned to make sure they are not overpaying for insurance after a new guide found rebuilding costs are a fraction of what they were during the boom.
The latest house rebuilding costs survey from the Society of Chartered Surveyors shows that the price of replacing a home is around a fifth less than what it was in 2008. This is despite a slight rise in rebuilding costs last year.
The bill for rebuilding a property has plunged by 21pc since the start of the economic crisis. This means that thousands of homes may be paying too much for home insurance. And rebuilding costs have collapsed by even more in Dublin.
But the Society of Chartered Surveyors of Ireland said rebuilding costs have now started to rise after years of falls. Homeowners have been warned to check that they have not over-insured or under-insured their homes.
The surveyors said that the largest increases in reinstatement costs on an average three-bed semi-detached home were in Cork, where there was a 3pc increase on 2013.
Reinstatement costs were also up 3pc in Limerick and 2pc in Galway. There were 1pc increases in Dublin and the north-west.
This means it now costs close to €170,000 to reinstate a standard three-bed semi in Dublin. This is up slightly on the cost last year, but €39,000 less than the rebuilding cost in 2008.
Homeowners can download the 2014 House Rebuilding Cost Guide at www.scsi.ie, where they can also use an online rebuilding cost calculator.