2023 saw an increase in the number of high value properties sold in Ireland.   A trend that has continued into the early part of 2024, and shows little signs of slowing down. The growth in the sector has been driven by a multitude of factors, from domestic economic growth, foreign Investment, market sentiment and confidence, topped with supply and demand dynamics. David Manning from DMG real estate points to an overall “combination of factors” rather than a sole contributor that “continues the drive a relentless demand for highend properties”.

Along with the initial cost of a high value property comes the add-ons, maintenance costs, property taxes and management fees. One such cost, home insurance, is often not considered until it’s too late to shop around. Insuring a high-value property in Ireland can present some unique challenges due to the significant value and specific risks associated with luxury homes.

High-value properties typically require higher insurance coverage limits, which can result in higher premiums. Insurers may also perceive luxury homes as higher risk, due to their value or location, driving the costs up.Luxury properties will generally have unique features, such as expensive materials, custom finishes, or high-tech amenities, which may require specialised insurance coverage to adequately protect against damage or loss. Finding insurers who offer comprehensive coverage for these specific needs can be challenging.

Determining the accurate replacement cost of a high-value property can be complex, especially if it includes valuable artwork, antiques, or other collectibles. Insurers may require professional appraisals or valuations to assess the property's true value, which can add time and expense to the insurance process. It’s important the home owners and brokers find the right professionals, qualified to make an accurate appraisal, to avoid any ambiguity or pay-out issues in the event of claim.

It is important for home owners and their brokers to have a clear understanding of their policies. Insurance policies for high-value properties may include exclusions or limitations for certain types of damage (e.g., flooding, acts of god) or specific items (e.g., fine art, jewellery) that require additional coverage or endorsements. Understanding these exclusions and obtaining the necessary supplemental coverage can be challenging without the help of professionals.

At Dolmen, we believe that when you are insuring a high-value property in Ireland, it is essential to communicate clearly with your insurance broker to ensure you get the right coverage. Our home insurance team have put together some key questions to ask your broker: