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Rebuilding costs continue to accelerate

Published

4 years ago

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By John Healy of Healy Insurances

The cost of construction has accelerated to record levels in recent months. As the country emerged from COVID restrictions the construction industry faced supply chain issues and delayed projects.

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Since then, the sector has battled shortages of materials, labour shortages and overall inflation in the wider economy. The end result of this turmoil is a huge increase in the cost of building. From an insurance perspective this is going to have far reaching consequences.

Your property should be insured for the reinstatement cost and not the market value, in order words the cost of rebuilding the house excluding the site value. Bear in mind that currently the rebuild cost could be higher than the market value.

The base rebuilding costs in the Kerry region are running at an average of €190 to €200 a square foot in the most recently published guide. I would wager that this figure is over €200 since the guide was published. Bear in mind the guide is based upon estate type houses built since the 1960s. The calculation should account for the most recent building regulations, professional fees, demolition costs and VAT, and should make provision for higher than average fittings, built in wardrobes, fences, walls, and garages.

UNDER INSURANCE

It is very important to note that “under insurance” can have a serious effect on any future claims settlements. All policies include an “Average Clause” which means in the event of “under insurance” any claims settlement can be reduced in value in proportion to the degree of under insurance. Where the Sum Insured is only 75% of the total reinstatement cost, you will receive 75% of the agreed cost of reinstatement, whether the claim is made for partial reinstatement or total loss.

I would recommend that you review your reinstatement sum insured sooner rather than later and review again in six month’s time. Inflation, supply chain shortages and the war in Ukraine are all affecting construction costs. In order to get a definitive individual reinstatement value on your house you should contact an independent qualified surveyor.

The Institute of Chartered Surveyors review rebuilding costs nationally and issue an annual report along with a handy calculator, this can be found at www.scsi.ie.

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Killarney Civic Arts Group to hold first AGM

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4 hours ago

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8 December 2025

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Killarney Civic Arts, a new group formed to advance cultural awareness and promote participation in the arts, is inviting the public to its inaugural Annual General Meeting (AGM) this month.

The group, made up of artists and arts workers, aims to share experiences and insights with the community regarding the future and direction of cultural development in Killarney and the wider Munster region.


Killarney Civic Arts invites anyone who cares about shaping creative places in the community to connect with them and share their thoughts and stories.


The first AGM will be held in the Deer-hunter lounge at the Dromhall Hotel, (V93PY80), on Saturday, December 13, at 10.00am. The event offers free entry and is hosted in an accessible room.


For further information, the public may contact Dolores Lyne at 087 263 8720.

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Tree of Light ceremony on Monday

The spectacular 100ft Tree of Light in Killarney, festooned with close on 3,000 lights and topped with a giant star, will again illuminate the town this Christmas with the official […]

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20 hours ago

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7 December 2025

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The spectacular 100ft Tree of Light in Killarney, festooned with close on 3,000 lights and topped with a giant star, will again illuminate the town this Christmas with the official switch-on date planned for Monday next, December 8.

The lighting up ceremony will take place after a community Mass in the adjacent St Mary’s Cathedral at 6.15pm and a short prayer service will mark the big switch-on.
The towering Tree of Light is a landmark giant Californian Redwood tree located just outside the main door of the Pugin-designed building.
The project is an collaboration between a sub-committee of Killarney Chamber of Tourism and Commerce and the Killarney parish and it creates a wonderful focal point in the town in the lead up to and during the festive season.
Killarney Parish Administrator, Fr Kieran O’Brien and Christmas in Killarney Chairman, Cllr Niall Kelleher extend a warm invitation to all community groups, schools, clubs and organisations, families and individuals to attend the special Mass next Monday evening or to visit the tree this Christmastime.
The feature star on the spectacular tree will take on an extra special meaning this year as it will be dedicated to the late Donal Grady, a long-serving local councillor and former Mayor of Killarney who worked diligently and passionately for the community.
Donal, who passed away in 2024, was a dedicated public representative who worked with great passion and a real sense of purpose on behalf of his loyal supporters.
Through his work as a long-serving chief fire officer in Killarney, he helped so many families at a time when they most needed assistance and reassurance and he brought a great sense of calm and responsibility to the position
The Tree of Light was first lit to mark the millennium year when it commemorated all those who lost their lives in the conflict in Northern Ireland and it was again illuminated in the mid-2000s to remember those who had been killed on Irish roads.
Since then the project is all about community and it celebrates the fact that Killarney is such a wonderful town to live in.
In the past, the star at the top of the tree has been dedicated to great community activists Johnny Hickey, Yvonne Quill, Paul Coghlan and Rena Kennelly.

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