Friday 27 April 2018

HOME TRUTHS

Yikes! Could our home insurance premiums be set to rise? It isn't looking too good given that the average costs of re-building a home have started to rise.

The average increase for rebuild costs year-on-year is 1.5pc, according to the Society of Chartered Surveyors of Ireland (SCSI), but they report that prices do vary depending on location and house type.

For example, in Dublin, rebuild prices for a three-bedroom semi-detached only increased by 0.52pc while in Waterford the increase was almost 2pc.

It is crucial to have the correct rebuild costs listed on your insurance policy so that you're neither under-insured nor over-insured. If under-insured, your policy would cost less but you wouldn't get what you need if you had to claim those rebuild costs; and if over-insured you're paying too much and won't be able to claim any more than the true cost. Either way, you lose out.

"The falls in recent years generally spelt good news for homeowners in that they could expect a pro-rata reduction in their house insurance premiums," says Andrew Nugent, Chairman of the Quantity Surveying Professional Group of the SCSI.

"However, it now appears we have come to the end of that trend and some owners may face very modest increases, if any."

So the cost of re-building a typical three-bed, semi-detached 95sqm house in Dublin has increased by €9 per square metre.

In Galway, the increase is even higher at €22 per square metre. This means that the rebuild costs for a typical three-bed semi-detached there have increased from €125,115 last year to €127,205 this year.

The SCSI has just launched an online calculator so you can work out what your rebuild costs should be, and if you prefer you can download their free App.

For more information: www.scsi.ie

Irish Independent

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