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Underinsurance is a critical issue

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2 years ago

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By John Healy of Healy Insurances

Home owners may have received a letter recently from their insurer regarding 'underinsurance'.

The Central Bank of Ireland has instructed insurers to contact all home owners to highlight this critical issue.

As an insurance broker we have been highlighting this matter for a number of years to our customers as the cost of building has been increasing steadily since before the pandemic.

Last year Zurich Insurance carried out a survey of over 1,000 Irish consumers.

Its key findings were as follows:

According to the research, 51% of homeowners surveyed are correctly insuring their properties, while over 1/3 of homeowners (36%) are incorrectly insuring their properties by basing their calculation on their homes’ market value as opposed to its rebuild cost. An insurance valuation refers to the ‘building sums insured’, which is the full cost of rebuilding a property including the cost of site clearance and architects’ fees. This should not be confused with the market value.

A further 36% of people who took out a home insurance policy did not take any action to calculate their buildings sums insured, i.e., the rebuild cost of their home. However, one in four people used the rebuild cost calculator operated by the Society of Chartered Surveyors Ireland (SCSI) or another reputable operator, while 15% of homeowners organised a bespoke rebuild valuation through a building’s surveyor.

Meanwhile, over a quarter (26%) of homeowners have reviewed the cost involved in rebuilding their home within the last year, 20% reviewed two years ago while a similar figure (19%) have left it three years or more. Almost 1/5 of homeowners (18%) have never reviewed the cost to rebuild their home or can’t remember doing so. High and rising inflationary costs across the construction sector mean homeowners should be reviewing their rebuild cost annually when renewing their policy to avoid the possibility of homes being underinsured.

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

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Newstalk Summer Tour arrives in Killarney

Newstalk’s 2025 Summer Tour, in association with ESB, is making its way to Killarney this week, bringing live broadcasts from the town. On morning, Friday, June 20, Newstalk Breakfast with […]

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23 hours ago

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18 June 2025

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Newstalk’s 2025 Summer Tour, in association with ESB, is making its way to Killarney this week, bringing live broadcasts from the town.

On morning, Friday, June 20, Newstalk Breakfast with Ciara Kelly and Shane Coleman will be live from the Café du Parc in the Killarney Plaza Hotel and Spa, kicking off at 7 am.
Ciara and Shane are scheduled to speak with local Kerry figures and take a trip on Killarney’s jaunting cars to see the sights.
Kelly said: “I am so excited to head to Killarney. I have had some fantastic memories as a child visiting Kerry and can’t wait to go back for Newstalk’s Summer tour!”
Coleman added: “Kerry is a wonderful place to visit and I am looking forward to seeing its natural beauty, vibrant culture and rich history.”
The week-long tour is taking the full Newstalk experience to towns across Ireland, featuring live shows, special guests, and conversation.

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Ring of Kerry Cycle to honour founder Paddy O’Donoghue

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2 days ago

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17 June 2025

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This year’s Ring of Kerry Charity Cycle, scheduled for July 5, will be run in memory of Paddy O’Donoghue, a founding member of the event.

Mr O’Donoghue, aged 81, from Muckross, passed away following a road collision in Kilgarvan on Tuesday, this week.

Paddy was a retired Kerry County Council engineer, affectionately known as ‘Paddy the Engineer’.

He was a driving force behind the annual charity cycle since its inception in 1982, regularly participating and fundraising for various causes. Beyond his cycling contributions, the Glenflesk native was also a notable footballer, having been part of the East Kerry team that secured the first All-Ireland Senior Football Championship in 1971.

Cathal Walshe, PRO of the Ring of Kerry Cycle said: “On behalf of the Ring of Kerry Charity Cycle I wish to extend sincere sympathy to Brenda and the O’Donoghue family on the sad and sudden loss of Paddy.

“He was a fantastic supporter of the annual charity cycle since it’s inception back in the 80s. A regular participant and wonderful fundraiser for whatever charity he chose. Paddy loved a challenge in whatever he undertook and was the epitome of what the event was all about. We miss the banter and craic but he won’t ever be forgotten. This year’s event will be dedicated to his memory on July the 5th. His likes will never be seen again. Slan Abhaile our friend.”

Tributes have been paid to Mr O’Donoghue, including from his local Glenflesk GAA club, who stated, “Glenflesk GAA would like to offer our sincere condolences to the family and friends of Paddy O’Donoghue on his sad passing. He was a true Glenflesk stalwart as a player, mentor and lifelong supporter.”

Paddy is survived by his wife Brenda, children Florence, Áine, Denise, Brenda, Báirbre, Patrick, and Alice, 17 grandchildren, his brother John, sisters Margaret, Kathleen, and Anna, and a wide circle of relatives and friends.

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