25 May 2022

Tormeys Solicitors | Is your property under insured?

Tormeys Solicitors | Is your property under insured?

Rising inflation and material costs have seen the cost to build increase significantly in recent times. Many people have invested in renovating their homes over the pandemic and these investments will likely have increased the reinstatement value of your home.

When purchasing home insurance, it is important to ensure that the policy contains adequate cover to allow you to rebuild the structure of your home, replace your belongings and protect your financial assets in the event of liability to others as a result of a range of risks such as loss or damage by fire, water damage and other disasters.  

Your home insurance policy can be tailored to your individual needs and should include adequate cover to defray additional costs such as the cost of securing alternative accommodation in the event you are unable to live in your home whilst works are being carried out, site clearance, the cost of replacing outbuildings and boundary walls located on your property and professional fees such as the fees of a surveyor, architect, and engineer. 

When reinstating your property additional costs may be incurred to take account of current building regulations and the new building must meet the standards that are in place at the time of rebuilding.  

It is important that your property is adequately insured to cover the current reinstatement value, particularly in a worst-case scenario of a total rebuild, which is the cost associated with rebuilding your property in the current market and to differentiate this figure from the sum owed on your mortgage and the market value of the property which may differ considerably.  

If your property is underinsured, you will not be entitled to claim the full cost of rebuilding your home in the event of a rebuild and will be limited to the sum insured.  If your policy is subject to an average clause condition this will reduce the payment due for any partial damage in proportion to the reinstatement value of your property. 

The Society of Chartered Surveyors Ireland have a helpful “Guide to House Rebuilding Costs for Insurance Purposes” as well as a “House Rebuild Calculator” on their website which may be of assistance and can be accessed at  

Further information from    

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