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Homeowners advised to check cover as rebuilding costs rise

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  • 20-06-2008 11:01am
    #1
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭


    http://www.irishexaminer.com/irishexaminer/pages/story.aspx-qqqg=business-qqqm=business-qqqa=business-qqqid=65498-qqqx=1.asp

    20 June 2008

    Homeowners advised to check cover as rebuilding costs rise

    By Niamh Hennessy
    THE cost of rebuilding a house has risen by more than 3% over the past year.


    Costs have risen the most in Cork at 3.8%, according to a survey conducted by the Society of Chartered Surveyors (SCS).

    Dublin saw the slowest rate of increase at 2.7%.

    Costs have also risen in Galway, Limerick and Waterford.

    The survey was conducted by the SCS to determine, for insurance purposes, how much it would cost to rebuild a house if it was destroyed. The cost of rebuilding will usually not be the same as the market value of the house.

    The highest increase was found to be for detached bungalows in all areas.

    The SCS said although increases are minimal, homes must be properly valued for building insurance.

    President of the SCS, Sean McCormack, said: “We are pleased to find costs in rebuilding homes have not risen too much for the fourth consecutive year, and are actually running a little lower than general inflation this year.

    “However, we must bear in mind costs are still rising and if home owners don’t make the necessary adjustments to their building insurance policies, they may not have adequate cover.”

    The guide found the most costly home to rebuild is a two-bed terraced house in Dublin again this year, at €2,211 per sqm, with Limerick following at €1,715 per sqm.

    The least costly is a detached bungalow in Waterford at €1,420 per sqm.

    Following two-bed terraced houses at the top end of the scale are three-bed semi detached houses in Dublin, Cork and Galway, with two-bed terraced in Waterford and three-bed terraced in Limerick.

    Detached bungalows cost the lowest to rebuild in Cork, Galway and Waterford areas.

    “Under-insuring can, sadly, in the unfortunate event of a claim, lead to a large gap between what is paid out by the insurance company and the actual costs of rebuilding the home. Insuring it for too much, on the other hand, leads to unnecessarily high premiums,” said Mr McCormack.


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