The SCSI Tender price index figures show national construction tender prices have increased rapidly in the past year. This is due to pent up demand post Covid, supply chain constraints, increase in the cost of materials and labour shortages.
How does this effect you as a home owner?
The amount you have your property insured for is known as the reinstatement cost. The reinstatement cost is based on the cost of rebuilding your property. It is not the market value of your property.
When the cost of construction increases it will impact on the reinstatement cost/amount you have your home insured for. Bearing in mind that construction cost have escalated by more than 20% in the past year, this may mean your property is underinsured.
If your property is underinsured you will not get the full costs for rebuilding it in the event of a claim.
I advise all homeowners to look at their home insurance on a regular basis to ensure that they are fully protected.
The SCSI have put together some information to assist homeowners when insuring their houses. They show you how to calculate your rebuilding costs depending on where you live in Ireland and what type of property you own.
Have a read through the SCSI guide. If you have any queries please get in touch with us. https://dnggalvin.ie/contact/
Wednesday, October 20, 2021 in Blog