Home Insurance Question

Tanabe

Morning All,

When obtaining a quote for renewal of house insurance would I be correct to state the rebuild value of the house and not the current market selling price? eg. a house that would sell for say €250,000 - one could state the rebuild value of €100,000?

Thoughts/tips/advice?

Cheers.

homer911

Look Here:

http://www.scs.ie/house-rebuilding-insurance

Tanabe

Homer you're a pure legend. Thanks ever so much for that informative guide, well done.

broker2008

yes the rebuild cost is the correct way. A word of warning don't underestimate the rebuild cost to save a few quid because in the event of a claim, the insurance company will not pay out the full amount. e.g if the rebuilding cost of your home is €200k and you only insure it for €100K - you will only get €50k in the event of claim because you only had insured it for half the amount.

Morrisseeee

e.g if the rebuilding cost of your home is €200k and you only insure it for €100K - you will only get €50k in the event of claim because you only had insured it for half the amount.

emmmm.....I've lost you on that one.
I would have assumed that if you insured it for €100k then you would get €100k !!!!!!

broker2008

Morrisseeee wrote: »

emmmm.....I've lost you on that one.
I would have assumed that if you insured it for €100k then you would get €100k !!!!!!

Nope - most fire policies have an "average clause" This clause reduces any partial loss by the same proportion as the sum insured bears to the actual value of the property at risk. For example, if property is valued at €200,000 and is insured for €100,000, any loss is (can be?) reduced by a half. If a loss occurs amounting to €10,000, the claim is reduced by the proportion 100,000/200,000. This proportion is applied to the partial loss of €10,000 giving a final payment of €5,000. For this reason, you must be certain that the sum insured chosen is sufficient to cover a total loss.

How many of us are underinsured ?

wasim21k

broker2008 wrote: »

How many of us are underinsured ?

i think i better insure full price of house as to insure 10000 or insure full value of property makes no different to premium. :mad:

IsThatSo?

A few years back I got a figure per square foot for rebuild costs. All I had to do then was multiply the figure by my square footage and I had my rebuild costs. I do remember throwing on a few thousand extra just to be sure to be sure.

At the time I got the figure from my bank. I can't remember what the figures were, but you should be able to get a similar idea from either your bank or your insurer.

garbanzo

Great thread folks. Just about to renew so appreciate the insights.:)

vHOST

yes it is really nice thread and also thanks to broker2008 for explanation and homer911 for link.

Eurorunner

broker2008 wrote: »

Nope - most fire policies have an "average clause" This clause reduces any partial loss by the same proportion as the sum insured bears to the actual value of the property at risk. For example, if property is valued at €200,000 and is insured for €100,000, any loss is (can be?) reduced by a half. If a loss occurs amounting to €10,000, the claim is reduced by the proportion 100,000/200,000. This proportion is applied to the partial loss of €10,000 giving a final payment of €5,000. For this reason, you must be certain that the sum insured chosen is sufficient to cover a total loss.

How many of us are underinsured ?

I don't doubt you on what you say above, but surely this is just plain wrong. I'm sure 99.9% of people if asked would expect to be covered for 100k if thats what they had given as rebuild cost.