Are You Adequately Insured?

Every year the dreaded insurance renewal comes around and for most of us we just want to convenience of saying same again, nothing has changed, carry on. In reality this is not the case as the way your home is insured has nothing to do with the market value of your house. Most people assume that because they bought their home for €200,000 then it should be insured for the same amount and it is only when they have to make a claim that they learn the very expensive cost of not being adequately insured. The value of your home insurance is based on the rebuild or reinstatement costs. The Society of Chartered Surveyors Ireland (SCSI) publishes a guide to house rebuilding costs and the rebuild costs vary across the country. Insurers will use these as a guide to estimate the value at risk (VAR) of a property when assessing a claim by measuring your property and applying the appropriate costs per m2. However, you also need to consider other aspects other than the rate per m2 such as high quality design finishes or special features like a bespoke fitted kitchen with marble worktops. Another consideration which most people forget is outbuildings and sheds which are all considered in your buildings cover unless you specifically request that they are not covered by your policy. A large shed can add significantly to the size of your property. If you have a claim and it is deemed that your insurance cover should be €200,000 but you only have cover for €150,000 then your claim will be reduced accordingly. This is known as underinsurance and can be very costly to the homeowner on a large claim. If you are 25% underinsured, you will only get 75% of the claims settlement. The responsibility to ensure you are adequately insured lies with you not with the insurer. If you are found to be significantly underinsured, then the Insurers can not only decline the claim but void the policy. The best way to ensure you home and contents are not underinsured is to have a value at risk survey which will assess your property, recommend levels of cover and arm you to make any changes necessary. Call us now to arrange your survey so you can have peace of mind that your property is adequately protected.