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Rebuilding costs continue to accelerate

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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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​​Bursaries presented to schools at Lions Club open night

By Michelle Crean Three Killarney schools have been awarded bursaries from a local group. Killarney Lions Club made the presentations to Killarney Community College, St Brigid’s Presentation School and St […]

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By Michelle Crean

Three Killarney schools have been awarded bursaries from a local group.

Killarney Lions Club made the presentations to Killarney Community College, St Brigid’s Presentation School and St Brendan’s College to help support students in need.

It took place at their open night recently in the KDYS Youth Centre.

The night featured different exhibitions about Killarney Lions Club activities such as the Annual Christmas Food Appeal and the Kerry Clubs Fair.

“It was great that people made the effort to come and find out more what Killarney Lions Club does, despite the weather on the night. We are a voluntary group so community support is vital for activities such as our Christmas Food Appeal which will kick off very soon.”

The Killarney Lions Club, through its members, assists various groups and individuals in and around the community. Lions do this through voluntary activities, fundraising and by holding various types of events in support of a great many local causes.

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Staff celebrated for their long service

Stalwarts of the tourism industry in Killarney were delighted to celebrate their long term team members with a gourmet dinner in Great Southern recently. The event was held for all […]

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Stalwarts of the tourism industry in Killarney were delighted to celebrate their long term team members with a gourmet dinner in Great Southern recently.

The event was held for all team members of the Great Southern and Killarney Royal who have over 10 years of service, and was hosted by Michael Jacobi, Managing Director, Hayfield Family Collection and Mark Scally, Financial Controller, Hayfield Family Collection.

32 employees celebrated on the night, with the Great Southern represented by John Fitzgerald with 53 years of service, Martina O’Leary with 44 years of service and Kathleen Bhuiyan with 31 years of service. From Killarney Royal Joseph Hurley celebrated 37 years of service with John Harrington celebrating 32 years and Nuala Doolan celebrating 30 years.

“It is an absolute pleasure for us to celebrate our long term staff members,” event host and Hayfield Family Collection Managing Director, Michael Jacobi, said.

“They have played such an integral part in achieving the high standards we are known to provide and are such familiar welcoming faces for our guests.”

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