Friday, September 16, 2022

Homeowners are bracing for a jump in their house insurance premium as the cost to insure a property has risen by approximately 20 per cent.

As reported by the Irish Examiner, the increase is largely being blamed on “skyrocketing” construction costs, which are increasing the potential rebuild costs that insurance companies must factor in when calculating a premium.

Figures from the Society of Chartered Surveyors Ireland (SCSI) showed the average cost nationally to rebuild a house jumped by 21 per cent over the past year, impacted by the increased price of building materials, supply-chain difficulties, and fuel price increases.

However, Insurance Ireland said rising rebuild costs are just one factor contributing to increasing house insurance premiums.

The ban on ‘price-walking’ has been cited as another aspect of the price hike, as customers can no longer be charged a “loyalty penalty”.

The practise previously saw customers who remained with the same insurance company being charged more than new customers.

“It means the kinds of people who previously negotiated new deals, or had threatened to leave, have to be charged the same price as someone who never threatened to leave,” Daragh Cassidy from Bonkers.ie said.

Homeowners are also being warned to check their insurance provides sufficient coverage in light of the rebuild cost increases as, in the event of damage to their home, the policyholders would be required to pay the shortfall if the rebuild value was greater than the value for which the house was insured.

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