Start as you mean to go on
Correctly estimating the amount to insure your home and contents for, including personal possessions, is key in preventing underinsurance.
Take time when first arranging your policy to check if the amounts you intend to insure your home for are adequate. Remember, failing to arrange adequate cover for your home may lower your chances of covering the cost of repairs or entirely replacing your home in the event of loss or damage (including its contents and personal possessions).
Consider the following when working out how much cover you need:
- 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)
- For guidance on how much to insure your contents for, refer to the contents and personal possessions section of our underinsurance FAQs.
Don't set and forget!
Reviewing your sum insured regularly is key to preventing underinsurance. In doing so, consider the following:
- Additions and Upgrades - Upgrades or additions to your home, including contents and personal possessions, may change the amount you need to insure your home for. Items such as a new sofa, laptop, television, or carpets may increase the cost to replace all contents as new. Installing a new kitchen, office, bathroom or fitted wardrobes may require a review of the cost to rebuild your home.
- Your Policy Cover - Whilst underinsurance relates to the amounts you have insured your home for, it is still important to review to your policy cover regularly to ensure it continues to meet your needs, especially if you have made any additions or upgrades. You can do so by reviewing your policy documentation (Policy Schedule and Statement of Fact) together with your policy booklet.
Keep us informed
Keeping us informed of changes to your home, such as those listed above, will mean you are best protected in the event of a loss or damage.
If you underinsure your home, you may not receive the full amount necessary to rebuild, repair or replace it in the event of partial or complete damage.
Example A: Partial Damage
- Pat and Mary have their home insured for €180,000.
- The cost to fully rebuild is €300,000.
- This means it is underinsured by €120,000 (40%).
- Fire damage occurs to the kitchen
- It will cost €100,000 to repair.
- As the house has been underinsured by 40%, a deduction of 40% is made from the cost of the repair.
- Therefore, the most Pat and Mary will receive in a claim is €60,000**.
**Subject to terms, conditions and exceptions of the policy.
Example B: Complete/Total Loss
- Pat and Mary have their home insured for €180,000.
- The cost to fully rebuild is €300,000.
- This means it is underinsured by €120,000 (40%).
- Fire damage occurs to the house requiring a complete rebuild.
- The cost to fully rebuild is €300,000.
- As the house has been insured for €180,000, the most Pat and Mary will receive in a claim is €180,000**.
**Subject to terms, conditions and exceptions of the policy.
