The Society of Chartered Surveyors (SCSI) has warned that homeowners may be overpaying for house insurance. It says they are paying for more cover than they can claim in the event that they need to rebuild their home– and overpaying on their insurance premium as a result.
The most common mistake homeowners made was to confuse the market value of a property with its rebuild cost. For example, the average three bed semidetached 95sq m (1,023sq.ft) house in Donegal is €85,000, but the rebuilding cost based on the SCSI house rebuilding guide is €117,000.
In contrast, a similar property in Dublin could sell for €350,00, but has a rebuild cost of €181,000.
Having the correct reinstatement value will not only make certain that you are not over- or underinsuring your property but will also avoid overpayment when it comes to your home insurance premium.