The Society of
Chartered Surveyors (SCS) says home insurance rates should fall because of
decline in Irish house rebuild costs.
guide to house rebuilding costs, published by the Society, shows that rebuild
costs for houses have fallen by an average of 4%. However the costs for the most
common house type, the 3 bed semi, have recorded falls of nearly 10%.
biggest decline, 10.2% occurred in Limerick while Dublin and Galway recorded
falls of 8%.
prices for two and three bed-roomed terraced houses also fell but by a lower
amount, between 4 and 6% depending on location.
says the findings will be welcomed by all homeowners as they should lead to
pro-rata reductions in house insurance premiums. However the figures indicate
that rebuild costs for larger and detached houses are showing signs of levelling
off with the rebuild costs for these house types declining by smaller margins or
the largest construction and property industry body in the country, publishes
the guide to assist homeowners insure their property. The guide surveys rebuild
costs for the main house types in all 5 major urban areas; Dublin, Cork, Galway,
Limerick and Waterford.
the fall in rebuilding costs means that the cost of rebuilding a typical
3-bedroom semi-detached 95 sq m house in Dublin has fallen €149 per sq metre
or from €204,056 last year to €189,132, this year, a fall of some 7.3%.
again Dublin has the most expensive rebuild costs across all house types. In
Cork the cost of rebuilding the same type of house fell €133 per sq metre or
from €162,636 last year to €149,232 this year, a fall of 8.2%. Rebuild costs are
slightly cheaper again in Limerick, Galway and Waterford.
of rebuilding two and three bed-roomed terraced houses in Dublin fell by 5 or 6%
while the cost of rebuilding a 4 bedroom semi detached house in the capital
only fell marginally. The cost of rebuilding a 4 bedroom detached house fell by
general pattern of price falls was repeated in the other cities although there
were some regional variations.
The chairman of the
Quantity Surveyors Division of the SCS, Micheál O’Connor said that homeowners
should ensure these latest rebuild costs are reflected in their insurance
“This is a guide which
is based on average rebuild costs but the latest falls could very well be good
news for homeowners and we would urge all of them to go to our website
www.scs.ie. They can then use the straightforward calculator on the
site before renewing their house insurance or if they want to check they are
paying the appropriate premium’’ O’Connor said.
“While the average decline nationwide is about 4% there are quite a few
variations depending on house type and location. The greatest price falls were
clearly for 3 bedroom semis as this is the most common house type and greater
cost saving can be achieved as a consequence” O’Connor concluded.
The full SCS guide featuring the price reductions of
rebuilding a variety of house types in different parts of the country is
www.scs.ie or free of charge by
sending a stamped self-addressed envelope to the Society of Chartered Surveyors
at 5 Wilton Place, Dublin 2.