Home owners are at substantial risk of not being fully covered by their insurance policy should they need to make a claim.
Niall Quinn, Director, Gullion Ltd said, “The Chartered Surveyors in Ireland found that rebuild costs have leapt by more than 20% over the past 12 months which means that many homeowners were automatically by default under-insured. Unless they altered their policy, their sum insured would be less than the amount it would cost to rebuild their property if it was destroyed, for example by fire damage.”
The SCSI House Rebuilding Guide is used by homeowners to calculate the rebuilding costs of their home for insurance purposes. It shows that the increase in rebuild costs ranged from 14% in Dublin to 26% in the northwest, with the national average increase sitting at 21%.
A recent review by Central Bank shows the impact on the ground with under insurance increasing from 6.5% in 2017 up to 16.5% in 2021. Those who have had their claim reduced due to under-insurance, faced a reduced payout at a whopping 19%. This resulted in significant personal costs to these homeowners, as they tried to reinstate their property.
Niall added, “The problem has been compounded by the sustained increase in the price of energy, inflation on raw materials and our ongoing labour shortages on the island of Ireland.
“It’s the perfect storm as we head into colder months when the real impact of the cost of living crisis will hit households across Ireland and homeowners may choose to reduce their amount of cover or worryingly opt for no insurance cover at all in a bid to save outgoings in the short-term.
“Reducing your insurance premium may appear as an easy solution, however the reality is that it is a huge gamble with what is likely your largest asset. Our advice, don’t risk it.”
Northern Ireland – Insurance Rebuild Calculator
Ireland – Insurance Rebuild Calculator
In the unfortunate event where you need to make a claim, contact Gullion Ltd Loss Assessors and Surveyors on 028 3082 8838. Regulated by the Central Bank of Ireland and authorised and regulated by the Financial Conduct Authority we will negotiate the best settlement on your behalf to ensure you achieve your full entitlement, under the terms and conditions of your policy. To reduce stress and streamline your claim, restoration works is an optional extra service which we also provide.
Gullion Ltd – you’re number one choice for insurance claims. For more, Gullion Ltd can also be found on Facebook, Google, YouTube and Twitter.