Half of all Kilkenny homes could be 'substantially underinsured' as rebuilding costs soar

Over 34,000 homes in Kilkenny may be underinsured by up to 30% following a huge increase in the cost of rebuilding, according to leading online broker Insuremyhouse.ie.

The home insurance expert’s internal review of thousands of customer renewals has indicated that up to half of all homeowners could now be underinsured by anywhere from 10% to 30%, owing to the huge increases in building costs around the country not being reflected in the rebuild cost sum insured they have placed on their home.

With rebuilding costs having increased by an average of 21% since 2016, the brokers are asking homeowners in Kilkenny to check their policies to ensure they have an accurate rebuild cost submitted, thereby avoiding the potential for significant financial shortfall in the event that an insurance claim needs to be made to rebuild their home due to total loss, such as fire.  

Commenting on the findings, Jonathan Hehir, MD of Insuremyhouse.ie said that "at renewal time, homeowners in Kilkenny should use the opportunity to reassess not only the cost of their premium, but also the details of what they are covered for, including the rebuild cost of their home.

"Many people will openly admit that they haven’t considered this in the recent past and so the sum insured has not changed, meaning that these people are underinsured and so hugely financially exposed in the event of a claim."

According to the Society of Chartered Surveyors, house rebuilding costs have increased by 21% nationally over the last five years.