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House rebuild costs for insurance purposes

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House rebuild costs have increased by an average of 21% in the past year. Homeowners are advised to review their house insurance.

Figures from the Society of Chartered Surveyors Ireland (SCSI) showed the average cost nationally to rebuild a house jumped by 21 per cent over the past year, impacted by the increased price of building materials, supply-chain difficulties, and fuel price increases.

What is the rebuild cost of a house in Co. Cork for insurance purposes?

The typical rebuild cost for a three-bed, semi-detached, 98m sq house in Cork is now €228,920, the SCSI said, €48,584 more than it would have been in 2021. (See image 1). The rebuilding rates are for speculatively built homes i.e. estate-type homes and should not be used for other house styles such as one-off homes in the countryside or period properties.

House rebuild costs for insurance purposes

What influenced the rise in rebuild costs in Ireland?

The increase in the price of building materials, coupled with supply-chain difficulties, played a major role in these increases, according to Kevin Brady, who chairs the SCSI’s Quantity Surveyors Professional Group.

“Although pricing pressures on certain materials such as timber, plasterboard, and insulation have eased slightly, rising fuel and energy costs are continuing to affect the supply chain,” he said.

“This is a direct result of the war in Ukraine and is leading to a sustained increase in the price of energy-intensive materials such as concrete, aggregates [infill material], steel, and paint. Coupled with these material price increases, ongoing labour shortages show no sign of abating and are also pushing up rebuild costs.” 

How to calculate the rebuild costs of a house?

  1. Calculate the internal area of your property by measuring the internal finish of the perimeter or party walls within the property, ignoring skirting boards, at each floor level.
  2. For two or three-storey houses, normally the upper floor is the same as the ground floor. However, if it is different, you should calculate each storey separately to retrieve a more accurate area calculation. Once you have all the areas, add them together to get the total sq.m area.
  3. Consult the SCSI calculator and choose the appropriate house type and region and insert your total floor area and add the cost of a garage if applicable. The rebuilding rates are for speculatively built homes i.e. estate-type homes and should not be used for other house styles such as one-off homes in the countryside or period properties.
  4. Homeowners should consider getting professional advice to be assured that the correct rebuilding rates are used in these instances.
  5. You should add higher-than-average kitchen fittings, finishes, etc if appropriate. You should also add for any other outbuildings e.g. studio, office.
  6. A House Rebuilding Calculator and the 2022 Guide to House Rebuilding Costs is available from the SCSI free of charge.

What happens if my home is not fully insured?

If a house is not adequately insured, householders may have to meet some of the rebuilding costs themselves if something were to occur.

For example in a case where a house is insured for €270,000 but the rebuilding cost is €360,000, they could face the €90,000 shortfall.

Top advice for homeowners in Co. Cork

Homeowners in Co. Cork should review how much their house is insured for on a yearly basis. It’s also important that homeowners reassess their cover to take account of any changes such as home office extensions or garden offices. These have become increasingly popular with more people now working from home, but they need to be included in the house insurance

Looking for property advice in Co. Cork?

For expert property advice please get in touch with DNG Galvin estate agents here or call 023 8844958

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on Saturday, September 17, 2022 in Blog

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