Avoiding under insurance when valuing your home is imperative. Throughout my time as an insurance loss assessor, I have encountered many homes that were grossly underinsured.
Often, this is not an intentional money-saving scheme. Instead, it happens because homeowners lack the tools to calculate their property value correctly. With construction costs rising significantly in Ireland, a policy that was accurate just a few years ago may leave you dangerously exposed today.
Calculating Your Home Insurance Rebuild Value
When insuring your home, you must base your cover on the rebuild value, not the resale value.
The resale value is what a buyer would pay for the house and land in the current market. The rebuild value is the actual cost of labor and materials required to build the house from scratch. If you confuse the two, you could be underinsured by 50% or more.
How Under Insurance Affects Your Claim
If you are underinsured, your insurance company will apply the “Average Clause.” This means they will reduce your payout by the same percentage that you are underinsured.
Example of the Average Clause in action:
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Actual Rebuild Value: €400,000
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Your Sum Insured: €200,000 (You are 50% underinsured)
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Damage from a fire: €80,000
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The Payout: The insurer only pays €40,000 (50% of the claim).
In this scenario, under insurance costs the homeowner €40,000 out of their own pocket. Reducing your annual premium by a small amount is never worth the risk of losing thousands during a home insurance claim.
What is Included in a Rebuild Value?
Your building’s sum insured must cover more than just the walls and roof. To avoid being underinsured, you must account for:
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The main dwelling and outbuildings (sheds/garages)
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Boundary walls and fences
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Paths, driveways, and patios
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Decking, landscaping, and professional fees
Check Your Rebuild Value Today
To help you stay protected, we have a [Home Rebuild Calculator] available right here on our website. This tool provides a guide to the average cost of rebuilding your home based on current 2026 data.
[Click here to use our House Rebuild Calculator]
Please note that our calculator figures are based on the latest [SCSI House Rebuilding Guide], which provides the industry standard for insurance valuations in Ireland.
Note: These figures are guidelines for estate-style homes. If you own a one-off property, a period home, or a property with unique features, we recommend a bespoke professional assessment.
Get Expert Advice on Your Policy
If you are confused about your policy or worried you don’t have enough cover, we can help. Don’t wait until you have to make a claim to find out you are unprotected.
Contact Claims Assist – Insurance Loss Assessors today at 0818 929 555 for expert guidance on your home insurance claim or under insurance queries.
Updated: January 2026