A recent Central Bank of Ireland review of the Home Insurance Market (September 2022) highlighted the risk of Under-Insurance to Homeowners. Under-insurance occurs when you choose the sums insured for your buildings and contents and they do not reflect the full rebuild and replacement costs for your home and your possessions. Under-insurance in the home insurance market has been steadily increasing over the last 5 years and is largely driven by building cost inflation in the construction sector including higher material and labour costs and significant increases in energy costs.
Melissa insures her buildings for €200,000. The actual replacement value is €400,000. (Based on current rebuild guidelines)
The above advice may not fully reflect your individual circumstances for your buildings and contents calculations, and we would encourage you to refer to your policy booklet for more detailed information including any limits that may apply.