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The cost of rebuilding a house has risen 

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By John Healy of Healy Insurances

The average cost of rebuilding a house in Ireland has risen by an average of 21% over the past 12 months according to the most recent rebuilding guide issued by the Society of Chartered Surveyors Ireland (SCSI).

The causes for the continuing acceleration of costs are many and new challenges such as energy costs are adding to the issues.

The construction sector has battled shortages of materials, labour shortages and overall inflation in the wider economy. The war in Ukraine and the current energy crisis are going to have consequences on the cost of materials which in turn will feed into rebuilding costs as the winter progresses.

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 other 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 €220 to €240 a square foot - or €2,435 per square metre for a four bed detached house of 119 square metres - in the most recently published guide.

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.

It is very important to note that “underinsurance” can have a serious effect on any future claims settlements. Most policies include an “Average Clause” which means in the event of “underinsurance” any claims settlement can be reduced in value in proportion to the degree of underinsurance. 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 continue to review during the year. In order to get a definitive individual reinstatement value on your house you should contact an independent qualified surveyor.

The rebuilding cost report and a rebuilding calculator can be found at www.scsi.ie.

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Status Orange Weather Warning for Kerry

Met Éireann has issued two weather warnings for Kerry on Wednesday, 27 September, A Status Orange warning for heavy and intense rainfall is in place from 9am to 3pm while […]

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Met Éireann has issued two weather warnings for Kerry on Wednesday, 27 September,

A Status Orange warning for heavy and intense rainfall is in place from 9am to 3pm while a Status Yellow warning for strong and gusty winds is in place from 7am on Wednesday to 12am on Thursday.

Possible impacts and disruptions include difficult travelling conditions, localised and coastal flooding, power outages, fallen trees and branches and poor visibility.

Kerry County Council is advising members of the public to prepare for severe weather on Wednesday and to ensure that items vulnerable to high winds are stored away. The Council is also advising motorists to travel with extreme caution on Wednesday and to expect surface water and spot flooding on all routes.

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World Rally Champion Phil Mills’ Killarney visit

Former World co-driving champion Phil Mills will be one of the guests of honour at a special Killarney and District Motor Club event next month. The club is celebrating Prodrive’s […]

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Former World co-driving champion Phil Mills will be one of the guests of honour at a special Killarney and District Motor Club event next month.

The club is celebrating Prodrive’s association with the Rally of the Lakes on October 14.

The legendary British motorsport preparation firm was responsible for building some of the most iconic associated with the local rally.

The celebration, which will raise funds for the Jack and Jill Foundation, will be hosted by the voice of Irish motorsport Alan ‘Plum’ Tyndall.

Welshman Mills, who won the 2003 World Rally Championship, alongside Petter Solberg has confirmed his attendance at the Killarney Racecourse-based event.

He is just one of many superstars attending the showcase.
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“Accompanying the stars will be a collection of iconic Prodrive machinery, ranging from the BMW E30 M3, all the way through to the Subaru Group A and World Rally Cars the 1990s and early 2000s,” said Killarney and District Motor Club vice chairman and organiser Mike Shea.

“All proceeds of this event will go directly to the Jack & Jill foundation helping provide support and special care to children across the country and is a once in a lifetime event.”

This event is in association with: Lyons of Limerick; C.Wharton Tool Hire Ltd; BG Motors Ltd; Castleisland Tyre Centre; Aherns Motor Group; Reen’s Rathmore Peugeot; KC Print and Moriarty’s Central Car Sales

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