Chartered surveyors are warning that Irish homeowners may face increased house insurance costs in future, after rebuilding costs rose by 7.3 per cent over the last 18 months.
The Society of Chartered Surveyors Ireland (SCSI) has published its latest guide to rebuilding costs, which shows the cost of rebuilding an average three-bed semi ranges from €218,000 in Dublin to €140,000 in the northwest.
Rebuild construction costs are the basis for house insurance and if they rise, customers should tell their insurance company. A customer who underinsures the total rebuilding cost of their home could have any future claim reduced by the same proportion.
According to SCSI, rebuilding costs increased by 5 per cent in Dublin over the last 18 months since it last released its guide, while costs in the northwest rose by up to 9 per cent. Elsewhere in the country, the average was 6-7 per cent.
SCSI said the increase in costs was attributed to new “nearly zero” energy efficient building standards, as well as a rise in the cost of some materials.
“Brexit has led to supply issues with building materials and increased the cost of a range of products, including insulation and timber products, mesh, structural steel, plasterboard and metal studs,” said Tomás Kelly, chair of the quantity surveyors group in the SCSI.
It said cost increases in Dublin had been kept down due to increased competition among contractors.
An earlier version of this article incorrectly identified RCSI as the surveyor. This has now been corrected.