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Confusion over home calculation

IRISH homeowners may be overestimating the value of their homes and paying too much insurance, according to experts. A significant 90pc of householders said they "don't know" how the rebuilding costs were recalculated.

The survey carried out by Buildcost shows clearly that there are huge levels of confusion about how homeowners calculate the reinstatement cost of their home. Only 10pc of homeowners surveyed have had a professional reinstatement valuation carried out.

Within the last year, the company has carried out numerous professional reinstatements on commercial properties and said many clients had not reviewed their property for some time and, in certain instances, as long ago as 10 years.

Buildcost director Liam Langan said there is confusion between the terms 'reinstatement valuations' and 'house values'. "This confusion, coupled with only 10pc of homeowners having had professional assessments, casts a huge questionmark over the accuracy of the amounts homeowners have their homes insured for," he said.