Note to readers: Last updated: December 2025. This guide has been fully revised to reflect the latest SCSI House Rebuild rates released on November 10, 2025.
Time and time again at Claims Assist, we deal with the issue of Under-Insurance. The term means exactly what it says on the tin: your property is not insured for its correct replacement value.
In a recent article, RTE Business Journalist Brian Finn shone a light on the critical importance of correctly insuring your property. In 2025, his warning is more urgent than ever. Following the November 2025 SCSI House Rebuilding Guide, national average rebuild costs have jumped by another 7% over the last 12 months, driven by severe labor shortages and new construction levies.
What does Under-Insurance mean in the event of a claim?
Many homeowners believe that if they have a “small” claim, like a €10,000 leak, their policy will easily cover it. This is not how insurance works in Ireland.
The Example:
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You have a major water leak at your home. Your Claims Assist Loss Assessor meets the Loss Adjuster assigned by your insurance company.
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We determine the damage will cost €40,000 to repair.
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The Adjuster carries out a VAR (Value At Risk) assessment, measuring the square footage of your home, garages, sheds, and boundary walls.
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If the Adjuster determines you are 50% under-insured based on today’s rebuild rates, they apply the “Average Clause.”
The Result: Even though everyone agrees the repair cost is €40,000, your insurer only pays €20,000 (50%). You are left to fund the remaining €20,000 yourself.
The Average Clause
Most Irish home insurance policies contain an “Average Clause.” If your property is deemed under-insured, your payout is deducted by that same percentage. While some companies allow a 15% margin of error, the November 2025 SCSI figures show that regional hikes—as high as 9% in the North West—mean most homeowners are now at risk of falling outside this safety zone.
Rebuild Value vs. Resale Value: What exactly is insured?
A common mistake is insuring a home for its Resale Value (what you could sell it for). For insurance, the only value that matters is the REBUILD VALUE.
In 2025, rebuild costs are often higher than market values because they must include:
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Demolition & Site Clearance: Clearing a site after a fire is a massive expense.
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New Levies: Including the Recovery Levy introduced on January 1, 2025.
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Professional Fees: Architects, Engineers, and Surveyors (often 10–15% of the build).
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VAT: 13.5% on building and 23% on professional services.
How do I calculate my property insurance?
To see if your cover is adequate, you must use current data. For a standard 3-bed semi-detached house (98sqm), the minimum base rebuild cost in Dublin is now approximately €331,340 (€3,381 per sqm), while in the North West, it is roughly €270,090.
Home Rebuild Calculator To correctly assess your cost, visit the SCSI Rebuild Calculator. This tool has been updated with the latest November 2025 data.
Am I correctly insuring my home?
If you have made home improvements or haven’t reviewed your policy since the latest SCSI rates were released in November, you are likely under-insured.
Don’t wait until you have a claim to find out you’re at risk. If you are unsure about your premium or are currently dealing with a claim where under-insurance is an issue, we can help.
Call Claims Assist – Insurance Loss Assessors today on 0818 929 555.