Insure your home for what it would cost to rebuild, not for what it would sell for, the CCPC says. If the sum insured is too low, an "average clause" can cut every claim in proportion, not just a total loss. The Society of Chartered Surveyors Ireland (SCSI) put the minimum base cost of rebuilding a typical 3-bed semi at €331,340 in Dublin and €270,090 in the North West (2025 guide, published 4 November 2025).
Rebuild cost is not market value
Market value is the price your home would fetch if sold on the open market. The rebuild cost, or reinstatement value, is the cost of replacing the building if it were destroyed. The SCSI says the second figure is the one that matters for insurance.
The SCSI says its rebuild figures assume a total loss: the house is demolished and completely rebuilt to current building regulations. They allow for demolition, professional fees and VAT.
Getting it wrong costs money either way. The CCPC says that if you under insure, your policy may not cover the full cost of repairs or rebuilding. If you over insure, you pay higher premiums with no extra benefit, because you are only covered for the actual cost.
How the average clause works
Under-insurance means your home or contents are insured for less than the cost of rebuilding, repairing or replacing them, the CCPC says. Many policies then apply an average clause: the insurer pays the same share of your claim as the share of the true value you insured.
The SCSI gives this example. A house would cost €400,000 to rebuild but is insured for €300,000, so it is 25% under-insured. On a genuine claim for €100,000 of damage, the insurer pays €75,000 and the owner pays the other €25,000.
The CCPC gives a total loss example:
| Rebuild cost | Insured for | Maximum claim settlement | Shortfall |
|---|---|---|---|
| €200,000 | €150,000 (75%) | €150,000 | €50,000 |
Contents work the same way. In the CCPC's example, if you insure contents worth €40,000 for €20,000 and they are destroyed, you get €20,000. Even if you claim €10,000, you may only get €5,000.
Insurers put this in their own wording. Aviva's HomeCare policy booklet (July 2026) says that if it deems you underinsured, it "may reduce your claim under that section by the same percentage for which you are underinsured".
Why homes become under-insured
The CCPC says the main reason is rising rebuilding costs, mainly due to higher prices for building materials. A sum insured that was right when you bought the policy can fall behind.
The SCSI's 2025 guide found national average rebuild costs rose by 7% over the 12 months to November 2025. That was up from 6% the year before and down from 12% in 2023. By region, the increases were:
- Cork: 3%
- Dublin: 5%
- Galway and Limerick: 7%
- Waterford and the North East: 8%
- North West: 9%
For a 3-bed semi, the SCSI says rebuild costs rose by "from over €8,000 to over €22,000 depending on where you live" in those 12 months. It also named two new levies that add to demolition costs: the Landfill Levy from 1 September 2024 and the Recovery Levy from 1 January 2025.
Home improvements matter too. The CCPC says to update your cover after an extension or renovation, such as an attic conversion or home office. The SCSI mentions garden offices as well.
How to estimate your rebuild cost
The CCPC points to the SCSI's free House Rebuild Calculator, or a property valuation service. The calculator is on the SCSI website (scsi.ie). Its steps, in short:
- Measure the floor area. Measure inside the outer or party walls at each floor level, ignoring skirting boards, and add the floors together. The SCSI uses the gross internal floor area.
- Pick the house type and region. If you are between two regions, the SCSI says the lowest risk option is to take the higher of the two.
- Add a garage if you have one. The SCSI's averages are €24,480 for a single attached garage and €43,790 for a double attached garage.
- Add anything above a standard estate house. This includes better kitchen fittings, built-in wardrobes, finishes, high specification bathrooms and outbuildings such as a studio or office.
What the SCSI figures include
- Demolition, professional fees and VAT, at 13.5% on building costs and 23% on professional fees.
- A concrete path around the house, driveway, re-grassing and fencing.
- A standard specification, such as double-glazed windows, standard electrics and a heat pump.
They do not include contents such as carpets, curtains and furniture. They are a minimum base cost, not a target.
When the calculator does not fit
The calculator only covers estate-type houses built in Ireland since the 1960s. It does not cover one-off homes in the countryside, period houses, bespoke homes, houses with basements or more than three storeys, or apartments, the SCSI says.
For those, the SCSI suggests a local chartered surveyor and keeps a directory of rebuild cost estimate providers. It asks people not to phone it for figures, as it cannot advise on individual properties. Apartment owners should ask the management company or agent about the block insurance.
Index-linking does not do the whole job
The CCPC says many insurers use indexation, raising your cover each year to keep up with inflation. Aviva's booklet says it may adjust sums insured each year using an index, but that "we do not take account of the significant differences in customers' homes". It urges customers to calculate their rebuilding cost using the SCSI guidelines.
The SCSI makes the same point: some insurers adjust policies each year, so homeowners need to check any quote matches current rebuild rates.
Getting the sum right can matter beyond the average clause. Aviva's booklet says it will settle a claim without a deduction for wear and tear if, among other conditions, the buildings sum insured equals the full cost of reinstating them.
Getting contents right
The CCPC says to insure contents for the full cost of replacing everything if it was stolen or damaged. When you add it up:
- include carpets and curtains
- include items in the garage or shed if your policy covers them
- check the limit for any single item
- list valuable items such as jewellery or antiques separately if needed
What to check at renewal
The CCPC says to check your buildings and contents cover every year, especially at renewal. Review it sooner if:
- you have new valuables
- you extended or renovated your home
- rebuild costs have changed
- you moved home or bought a second home
- you let your policy lapse
Ask your insurer three things. What sum insured is on the schedule now? Is it index-linked, and by what index? Does the policy have an average clause on buildings, contents or both?
The CCPC says the amount insured is one of the main factors in your premium. Our guide to the cost of home insurance covers what moves the price, and what home insurance covers explains buildings and contents cover. For an overview, see our home insurance guide.
Sources
- CCPC: Home insurance (accessed 9 November 2026)
- CCPC: Making an insurance claim (accessed 9 November 2026)
- Society of Chartered Surveyors Ireland: House Rebuild Calculator and A Guide to Calculating House Rebuilding Costs for Insurance Purposes (2025/26), published 4 November 2025 (accessed 9 November 2026)
- Society of Chartered Surveyors Ireland: press release on house rebuilding costs, 4 November 2025 (accessed 9 November 2026)
- Aviva Ireland: HomeCare policy booklet, July 2026 (accessed 9 November 2026)
General information, not financial advice. Prices and rules change: check the details with the insurer before you buy.