Might be a good time to check your policy.
An insurance company has warned that half of the 195,442 homes in Cork could be substantially underinsured, which could lead to reduced pay-outs for homeowners should they suffer a claim.
That’s according to online broker Insuremyhouse.ie, following the release of data which shows that the cost of rebuilding a standard three-bed, semi-detached house on Leeside has increased by 23% to €174,895 in the last five years.
An internal review of thousands of customer renewals indicated that up to half of all homeowners could now be underinsured by anywhere from 10% to 30%, owing to the huge increases in building costs around the country not being reflected in the rebuild cost sum insured they have placed on their home.
“At renewal time, homeowners in Cork should use the opportunity to reassess not only the cost of their premium but also the details of what they are covered for – including the rebuild cost of their home.” said Jonathan Hehir, MD of Insuremyhouse.ie.
“When calculating the base rates for rebuilding, it’s important to be aware that costs are calculated on a total loss situation, i.e., the building has been totally destroyed and has to be demolished, the site cleared, and the house completely rebuilt.
“Another key consideration is that the costing does not include contents such as carpets, curtains, furniture, and white goods and appliances – these are covered under the contents section of the insurance policy.”