Getting Home Insurance? Know your rebuild costs!

When considering Home Insurance, you need to understand the rebuild cost of your home. This figure represents the total expense you would incur to reconstruct your home from scratch if it were completely destroyed. 

Accurately assessing this cost is vital, as it ensures you are neither underinsured (risking insufficient coverage to rebuild your home) nor over insured (paying for more coverage than necessary). 

Here are the key factors to consider when determining your home’s rebuild cost before purchasing Home Insurance

1.        Understand What Rebuild Costs Include

The rebuild cost covers the expense of reconstructing your home, including materials and labour, but excludes the value of the land on which your home is built. It’s important to factor in costs related to demolition, site clearance, and professional fees for architects and engineers.

2.        Use the SCSI Rebuilding Guide

The Society of Chartered Surveyors Ireland (SCSI) publish a House Rebuilding Cost Guide annually, offering average rebuilding costs for various types of homes across different regions in Ireland. This guide can serve as a starting point for estimating your home’s rebuild cost, adjusting for specific features or materials that may affect the cost.

The latest calculator suggests rebuild cost ranging between €2,153 per square metre up to €3,213 per square metre. For a Detached 4-bedroom house of 119 sq/m, this would equate to €382,347. But you may have to increase that depending on other features that we will look at now. One-off houses in the countryside might also require further investigation by a Chartered Surveyor.

3.        Consider Unique Features in Your Home

Standard rebuilding cost estimators may not account for unique features or premium materials used in your home. If your property includes custom work, high-end finishes, or historical elements, these could significantly impact the rebuild cost. Consulting with a professional surveyor or builder can help in accurately valuing these aspects.

4.        Adjust for Inflation and Market Changes

Construction costs can fluctuate due to market demand, changes in labour costs, and variations in the price of materials. Regularly updating your rebuild cost estimate ensures your insurance coverage reflects current market conditions. It’s advisable to review and, if necessary, adjust your insurance coverage annually.

A good opportunity to review the rebuild cost is when your Home Insurance is up for renewal. If you’re looking for a competitive quote, then be sure to get in touch with us. And don’t forget that you get extra discounts when you get other AA products such as Car Insurance, Travel Insurance or Roadside Assistance and many more.

5.        Professional Valuation

For the most accurate rebuild cost estimate, consider hiring a professional chartered surveyor. They can assess your property’s specific characteristics, including size, layout, and construction materials, to provide a detailed rebuild cost estimate. This professional assessment can be particularly beneficial for homes with unique or non-standard features.

If you’re wondering how much Home Insurance costs, unfortunately it’s not an exact science! But we do have a blog post that goes through some of the factors involved in determining how much you pay!