What is underinsurance?

• Underinsurance means you are not fully protected in the event of loss or damage occurring to your home (buildings and/or contents including your personal possessions such as jewellery, sports equipment, pedal cycles).

 How does underinsurance occur?

• Underinsurance can occur where the amount you have insured your home for is not enough to cover the full cost of rebuilding, repairing, or replacing all items as new.  
• Underinsurance can occur for many reasons. Check out our tips on how to avoid your home being underinsured in order to best protect you and your home in the event of loss or damage.

How could underinsurance affect me?

• In the event of a claim covered under your policy, you may not receive the full amount necessary to rebuild, repair or replace your home. 
  

Who is responsible for determining how much to insure my home for?

• The amount you insure your home for is referred to as the sum insured. If your home is underinsured, you may not receive the full amount necessary to rebuild, repair or replace it in the event of partial or complete damage. 
• You are responsible for setting the sum insured.
  

How do I determine if my home is sufficiently insured?

• The amount you insure your home for must include the full cost of rebuilding the property, including the cost of site clearance and architects’ fees.  This is not to be confused with the market value. The market value refers to the amount your home is likely to sell for which takes into account the land your home sits on. The Society of Chartered Surveyors Ireland (SCSI) provides both a guide and a House Rebuild Calculator to assist you in insuring the buildings of your home.

• They also provide a link to find an expert should you determine your home is best assessed by a local Chartered Quantity Surveyor.

• This information is available at:
  House Rebuild Guide (opens in new window)
  House Rebuild Calculator - Society of Chartered Surveyors Ireland (scsi.ie)
  

What steps can I take to prevent underinsurance?

• Adequately setting your sums insured from the start of your policy/last renewal is key to preventing underinsurance. 
• Review your sums insured during the policy period if you have made changes, additions or upgrades to you home.
• Check out our Tips to avoid underinsurance in order to best protect you and your home in the event of loss or damage.
• Consider any wider economic factors that may need to be accounted for when setting/reviewing your sums insured. These can include inflation, the costs of materials or contents, or the availability and cost of labour. Your sums insured may need to be amended to reflect any changes as a result of these factors. 
  

Does Zurich Insurance have any safeguards in place to help prevent my home becoming underinsured?

• Your policy is index-linked which means in times of inflation and in line with your policy terms and conditions, we will adjust your buildings and contents sums insured at renewal to take account of inflation. 

• We also monitor inflation throughout the policy period and in line with your policy terms and conditions. When applicable, we will not adjust your buildings and contents sums insured but instead we will automatically make an allowance for the impact of inflation when assessing a claim under your policy. This allowance will be made at no extra cost to you.

• It is important to note that index-linking is not specific to your property and relying on index-linking alone may not be sufficient to protect you from underinsurance, especially at renewal or during the policy period if you have made changes, additions or upgrades to your home. It is vital that you review your sum insured regularly to ensure you have adequate cover to meet your needs. For more information on index linking, please refer to your policy booklet.
  

• Where can I check how much I insured my home for with Zurich Insurance?
  The sum insured is outlined in your policy schedule.