Wednesday, June 22, 2022

How Much House Insurance Do I Actually Need?

Ever wondered how much house insurance do you really need? You’re not the only one. Lately, this question pops up in the mind of Irish homeowners more often than not.

How do I find out how much House Insurance do I need? 

Establishing how much house insurance do you need is not always an easy task and will probably require you to do some research. That’s because the level of cover you will need is influenced by a range of factors and aspects. For instance, the cost of the premium can be impacted - positively or negatively - by the age of your house, the potential cost of rebuilding it, and other aspects of the property. The rebuild cost is obviously a major factor in the final price of your cover and you can read below how to calculate it. 

The best way to figure out all these details is to contact a home insurance broker like InsureMyHouse.ie and ask one of our experts for free advice. Either way, you should read the rest of this article to get familiarised with the process and the terminology. 

House Rebuild Cost & Property Value 

The house rebuild cost plays an important role because it helps you figure out the value of your property. Remember, the value of your property in this case is different from the market value of your property and you need to find out how much it is in order to establish the level of house insurance you need. 

Once you figured out what level of cover you need based on the value of your property, you can opt for the best suitable house insurance that will cover property and belongings loss and damage, whether is caused by theft, fire, flood, subsidence, escape of oil or water, or natural disasters like storms. 

How do I calculate the Rebuild Cost of my house?  

There are a number of similar House Rebuild Calculators available online that can assist you in determining the cost and we will provide you their links below. Although these calculators do a great job at assisting you with picking the right level of home insurance, most policies are different. Some policies cover more, some less, thus it is crucial that you inspect every policy or quote carefully. You want to insure your home for the correct amount. 

When calculating the rebuild cost bear in mind that the figures are based on guidelines that are most probably from last year. As you might know, the construction sector an increase in prices in the last two years and it’s still not stabilised. So, due to the increased construction inflation rates, a good idea for homeowners would be to factor in the increase in construction inflation in the interim when renewing policies. 

Online calculators for Rebuild Cost 

If you feel ready and armed with sufficient information you can head to any of these two online calculators: the house rebuild calculator provided by the Society of Chartered Surveyors or the VAR calculator from Claim Assist Ireland. You will need to provide the following information in the calculator’s interface: gross internal floor area for the building, region, house type, minimum base cost, garage, higher than average kitchen fittings, higher than average built-in wardrobes, special finishes (e.g. hardwood timber floors), rebuilding any outbuildings, rebuilding fences/walls, any other items which are not covered (e.g. fire alarm, disabled access ramps or systems, etc). 

We recommend that you treat the figure provided within the calculator as a minimum for which you should insure the structure of your home. The calculators are purposed as a guide only, to help you estimate the costs of rebuilding your house.  

If you’re still not sure how much house insurance do you need, get in touch with one of our experts at 01-6032999 to receive advice or request online a house insurance quote.