MBC Insurance are taking this opportunity to remind all our Home Insurance clients of the importance of you reviewing the adequacy of your current sums insured.
With current building cost inflation running at an average of 6.5 per cent over the past 18 months, it is important to make sure that your reinstatement valuation is correct on your current policy of insurance or at least that you have taken the time to review same, it is your responsibility to advise if the cover needs to be increased or not, failure to do so may result in issues of underinsurance and the reduction in the value of a claim. Remember also that the market value of your property has no bearing on the level of house insurance required.
Insure your home for the rebuild cost
It is important to remember that you only need to insure your property for the amount it would cost to rebuild; not its market value or the cost you would sell the house for. You can find a guide to your property’s rebuild cost by taking a look at the survey or valuation report which was undertaken when you got your mortgage or purchased the property. Alternatively, you can visit the Society of Chartered Surveyors Ireland website here and use the house rebuilding calculator to estimate the cost of rebuilding your property.
The most accurate way to establish the rebuild cost of your house is to engage the services of a suitably qualified and experienced Architect/Engineer or Quantity Surveyor.
The rebuilding costs should consider current building regulations which are constantly changing. For example, a poorly built home from 1990 which is destroyed would need to be rebuilt with the regulations in place at the time of rebuilding.
The amount that your home is insured for should be calculated on a ‘total loss’ scenario. This means that you should insure your home for an amount that would cover for the house rebuild along with costs associated with demolishing, site clearance, footpaths, fencing and parking and the professional fees for engaging professional engineers, surveyors and architects to assist in the rebuilding of the property
You may want to increase the sum insured if your kitchen is of a very high standard or if there are any other enhanced finishes such as an above average bathroom fit out, attic conversion and/or built in wardrobes or units..
For more historic or bespoke houses, you should rely on the expertise of a chartered surveyor as the costs of rebuilding can be substantially more expensive..
It is important to review the rebuild cost of your home each year as the cost to build and the materials involved are very often impacted by inflation.
Contact our home insurance team today on 021 427 5347 or 068 59983 or email@example.com should you have any queries.