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Home Insurance


YOUR INSURANCE POLICY


Your Home Insurance Policy is intended to include, among other things, the full or partial reinstatement of your house, in accordance with the insured risks as outlined in your policy, should the need arise.
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As the intention of insuring your home is to leave you in much the same position before the damage was caused, you should ensure your policy covers the following:

  • Full Reinstatement “New for Old”
  • That any reinstatement conforms with the Building Regulations current at the time of re-construction.

 

 
REINSTATEMENT VALUE
 
The re-instatement value of your buildings has nothing to do with the actual market value of the house you are living in.
 
The re-instatement value of your buildings is the cost calculated on a total loss situation and assumes the buildings have been totally destroyed and includes for the following:
 
  • Costs for total demolition and removal from site.
  • Costs for total reconstruction of buildings to return them to their original state – but complying with current building regulations.
  • Costs for total professional fees required to repair or reinstate the buildings – but not to prepare the claim.
  • VAT as applicable on all of the above costs.
 
ACCURACY OF REINSTATEMENT VALUE
 
It is very important that the reinstatement value provided to the Insurance Company is accurate.
 
If the reinstatement value you provide is too low, it can result in the “average clause” being applied. This means that in the event of a claim you will only receive a proportionate amount of the claim.
 
Put simply in the case of a property insured for €210,000.00 and the total reinstatement cost is found to be €270,000.00, in the event of a total loss you will only receive €210,000.00 and you will have to make up the difference of €60,000.00.
 
In the event of a partial loss costing €81,000.00 you will only receive €63,000.00 and you will have to make up the difference of €18,000.00.
 
  • Example: €81,000.00 / 270,000.00 x 210,000.00 = €63,000.00
 
On the other hand if the reinstatement value you provide is too high, whilst you may receive the full entitlements under your insurance policy for any losses you may encounter, you will not receive any additional monies.
 
So in the case of a property insured for €350,000.00 and the total reinstatement cost is found to be €270,000.00, in the event of a total loss you will only receive €270,000.00. This means that in the event of a claim you will only receive the agreed reinstatement cost even though the premiums you are paying may be far greater than necessary.
 
CALCULATING THE REINSTATEMENT VALUE
 
To calculate the re-instatement value of your buildings the following factors must be taken into account:
 
  • The layout of your house – i.e. whether your house is a bungalow or a two storey house etc.
  • The size of your house.
  • The complexity of the design of your house.
  • The type of external and internal finishes in your house.
  • The type of windows and external doors in your house.
  • The quality and standard of the internal doors and joinery in your house.
  • The type of heating installation in your house.
  • Whether your house has been fitted with solar panels or the like
  • The quantity and price range of your sanitary fittings.
  • The price ranges of your kitchen fittings, wardrobes and fireplaces etc.
  • Whether your attic has been converted.
  • The size, quality and number of outbuildings on your property.
  • The type and quality of boundaries, gates and landscaping with your property.
  • The replacement value of any other fixed items on your property both internally and externally.
 
REINSTATEMENT COSTS CALCULATOR
 
Our Quantity Surveyors have developed our own Reinstatement Cost Calculators in house. These calculators enable us to provide accurate minimum reinstatement values on the following property types:
 
  • Most estate type houses built since 1960
  • Most stand alone houses of conventional design built since 1960.

     
If your property falls into the either of the above categories calculate your Reinstatement Value here.
 
If your property does not fall into either of the above categories, and you require a minimum reinstatement value please contact us and we will be delighted to quote you a fee without obligation.
 
© Self Build Rates Ltd.