When it comes to home insurance, one of the most important — and most often misunderstood — figures is your property’s rebuild cost. It’s not the same as the market value, and if it’s not accurate, it could leave you dangerously underinsured.

What Is a Rebuild Cost?

Your rebuild cost is the amount it would take to completely rebuild your home from scratch — including labour, materials, professional fees, and site clearance — if it were destroyed by something like a fire, flood, or storm.

It does not include the price of the land your house sits on, which is why rebuild costs are often lower than market values, especially in high-demand areas.

Why It Matters

If your home is underinsured — for example, insured for €250,000 when the actual rebuild cost is €320,000 — your insurer may apply what’s known as the “average clause.” That means in the event of a partial claim (say €50,000 in storm damage), you could only get a proportion of the payout based on the level of underinsurance.

In this case:

€250k insured ÷ €320k rebuild = 78% coverage
€50k claim × 78% = €39,000 payout
Leaving you with an €11,000 shortfall.

Why It’s More Important Than Ever

With inflation and rising material and labour costs, rebuild values in Ireland have risen significantly. Many homeowners have not reviewed their cover in years, which means thousands of homes are currently underinsured without the owners realising it.

How to Check or Update Your Rebuild Cost

  • Use the Society of Chartered Surveyors Ireland (SCSI) online calculator to get an estimate based on your location and house type.

  • Review your sum insured annually — especially if you’ve renovated, extended, or improved your home.

  • Speak to your broker to help ensure your cover reflects today’s true rebuild cost.

The Bottom Line

Insuring your home for the correct rebuild value ensures that you’re protected when you need it most — without costly surprises. It’s not about overpaying, but about getting it right.

Your Source Broker can help you review your policy and make sure your cover fits your home — not just your postcode.