SCSI – House rebuilding costs increase marginally in 2014
The latest House Rebuilding Cost Guide, published annually by the Society of Chartered Surveyors Ireland (SCSI), shows that national average house rebuilding costs increased this year following a stabilisation last year and several years of decline.
The SCSI said that the largest increases in reinstatement costs on an average 3 bedroom semi-detached home were in Cork where there was a 3% increase on 2013. Reinstatement costs were also up 3% in Limerick and 2% in Galway.
There were 1% increases in Dublin and in the North West. It also said that reinstatement costs have generally increased outside of the Capital, which has previously experienced increases in reinstatement costs in recent years.
The average minimum rebuilding costs for a standard 3-bedroom semi-detached house around the country are as follows:
§Dublin – €169,575 (up 1% on 2013)
§Cork – €133, 570 (up 3%)
§Galway – €129,580 (up 2%)
§Waterford – €127,205 (no change) §Limerick – €131,385 (up 3%)
§North West – €116,755 (up 1%)
§North East – €144,305 (no change)
Micheál O’Connor, President of the Society of Chartered Surveyors Ireland (SCSI) said; “The marginal increase in house rebuilding costs reflects slightly higher input prices for construction materials and labour costs. However, it should be noted that the costs are still approximately 21% lower for an average 3 bedroom house than they were in 2008”.
“The key for homeowners is to check that their house rebuilding costs – the reinstatement costs involved in rebuilding a house in the event of a catastrophe such as a fire which are required on all home insurance policies, are adequate and fully in line with current figures. By doing so, they could potentially avoid either overpaying or underpaying on their home insurance premiums” he said. O’Connor said the most important thing for homeowners is to make sure they are not overpaying or underinsuring their homes and reminded homeowners that they can check their house rebuilding costs using a variety of resources available for free from the Society of Chartered Surveyors Ireland (SCSI).
“In order to help homeowners check their rebuild costs are reflected in their insurance premiums they can download the 2014 House Rebuilding Cost Guide from the SCSI website and can use our Online House Rebuilding Cost Calculator. Alternatively they can download our House Rebuilding Cost Calculator App from the iPhone and Android App stores” concluded O’Connor.