The national average cost of rebuilding a home in Ireland rose by just over a fifth last year, the Association of Chartered Surveyors estimates.
Homeowners use the SCSI Home Reconstruction Index to calculate the costs of rebuilding their homes for insurance purposes.
The increase in rebuilding costs is shown to range from 14% in Dublin to 26% in the North West, with the national average increase recorded at 21%.
The report noted that although Dublin recorded the lowest increase, the capital had the highest rebuilding costs while the Northwest region, which recorded the largest increase, recorded the lowest.
The report comes as the construction industry continues to struggle with inflated input prices for raw materials and labour.
The Supreme Council of Statistics said that not all of the increases could be attributed to construction inflation.
She pointed out that the specifications and designs used for the six types of homes were updated this year, which had an impact on prices.
“Although pricing pressures on some materials such as timber, gypsum board and insulation have eased a bit, rising fuel and energy costs are still affecting the supply chain,” said Kevin Brady, Group Head of Quantity Surveyors at SCSI.
“This is a direct consequence of the war in Ukraine and leads to a sustained increase in the prices of energy-intensive materials such as concrete, aggregates, steel and paint,” he said.
Combined with these material price increases, the ongoing labor shortage is showing no sign of abating and is also driving up rebuilding costs.”
Breaking down the numbers, the minimum cost to rebuild a 3-bedroom semi-detached house in Dublin is €268,000.
The cost of rebuilding a similar house in Waterford is 225 thousand euros – a difference of 43 thousand euros.
SCSI urged homeowners to ensure they are getting the correct value to return their homes for insurance purposes.
“Homeowners need to ensure that their homes are adequately insured so that in the event of a total or partial loss, such as a fire, they are covered under their insurance policy when they are rebuilt or rebuilt,” Brady said.
“While these increases are significant, they do not necessarily mean that premiums will increase significantly and consumers should shop when looking for insurance cover for their homes,” he added.
Homeowners who are not adequately insured are warned that they may be penalized under their policy by having to pay a certain percentage of restoration costs.
“When the sum insured is only 75% of the total cost of reinstatement, you will only get 75% of the agreed cost of reinstatement, whether the claim is made for partial replacement or total loss,” explained Kevin James, President of SCSI.
“It is also important for homeowners to reassess their insurance cover to account for any changes such as home office or garden office extensions. These changes are becoming increasingly common with more people now working from home, but should be included in home insurance,” added.
a home remodeling calculator The 2022 guide to home rebuilding costs is freely available from SCSI.