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.
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.
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.”
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.
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
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