For Irish homeowners and property investors, home or buildings insurance should provide them with a crucial safety net, protecting property assets against unforeseen events. In its simplest form, it should step in to cover the cost of repairs or rebuilding work after an insured event, like fire or flood, but for all too many property owners, across domestic and commercial properties, that vital protection is not always as it seems.

In fact, recent research conducted by Aviva has found that 80% of properties are underinsured. To put that in context, a UK report highlighted that around 587,000 high net worth homes and commercial properties, with a total value of €380 billion, are standing without adequate buildings insurance. Both reports cite that many homes across the country may be underinsured due to the rising costs of building materials and construction. As building costs continue to spiral upwards, the value of homes may be far outpacing the coverage provided by homeowners' insurance policies.

This is a worrying trend, as homeowners may be left with significant out-of-pocket expenses if they need to rebuild their homes after a disaster, such as a fire or natural disaster. In some cases, homeowners may not even have enough coverage to cover the cost of repairs or rebuilding.

There are a few steps that homeowners can take to ensure that they are adequately insured in the event of a disaster. First and foremost, it is important to review your homeowners' insurance policy regularly to ensure that it provides adequate coverage. In recent months, many homeowners have considered purchasing additional coverage to cover the rising costs of building materials and construction.

Another option is to work with an experienced insurance agent or broker who can help you assess your coverage needs and find a policy that provides the right level of protection for your home and possessions. At Dolmen Insurance, our home insurance team carries out a detailed assessment considering all factors, including inflation and the impact it has on future costs, we discuss what is important to you and offer you the options so that you can make a well-informed choice.

It is also important to keep detailed records of your home and belongings, including photos and receipts, so that you can provide documentation in the event of a claim.

Ultimately, the key to protecting your home and finances is to stay informed and proactive about your insurance coverage. By staying up-to-date on the latest trends in building costs and working with an experienced insurance professional, you can ensure that you have the coverage you need to weather any storm.

Maintain dialogue with your insurer. At Dolmen, we continually strive to find you the best cover and protection available, so that you have peace of mind, and you are financially covered should something happen.

Your home is likely to be your most valuable asset, so it pays to make sure you, your property and your investment are fully protected. If the unexpected happens, a collapsed wall, a serious fire or theft, you need to know that your insurance policy will cover the costs. At Dolmen, our team have the experience to guide you every step of the way, to ensure you have the right cover and protection. Call us or visit our website to find out more. 

Call: 01 8022370

Visit: www.dolmen-insurance.ie

email: info@dolmen-insurance.ie

The information contained in this article is based on sources that we believe are reliable and should be understood as general risk management and insurance information only. It is not intended to be taken as advice with respect to any specific or individual situation and cannot be relied upon as such.

Ref: The Society of Chartered Surveyors Ireland (SCSI) updated the rates for rebuilding costs in September 2022.

Research conducted by Rebuild Cost Assessment Limited UK - Underinsurance ‘made worse’ by rising construction costs cited in Builders Merchants Federation (BMF) report