Why Property Underinsurance Is a Growing Problem
In recent years, underinsurance has become a major issue for both homeowners and business owners across Ireland. With rising construction and material costs, many rebuilding valuations set years ago are now far too low — meaning that if disaster strikes, your insurance payout may not cover the full cost to rebuild.
If you haven’t reviewed your home or commercial property’s rebuilding value recently, there’s a good chance you’re underinsured without even realising it.
What Is Underinsurance?
Underinsurance happens when the sum insured on your policy is less than the actual cost to rebuild or replace your property. For example, if your building is insured for €300,000 but the true rebuilding cost is €400,000, you could be left responsible for a large portion of the costs yourself — even on partial claims.
Most insurers apply what’s called the “average clause”, meaning they’ll only pay out a percentage of your claim based on how underinsured you are.
Why It’s Becoming More Common
Several factors have made underinsurance a growing concern in recent years:
Increased building and material costs – construction expenses have risen significantly in Ireland.
Labour shortages – rebuilding timelines are longer and more expensive.
Outdated valuations – many policies haven’t been reviewed for years.
Inflation – even modest annual increases add up over time.
Without regularly updating your rebuilding value, your policy may no longer reflect today’s real costs.
How Power Insurances Can Help
At Power Insurances, we’ve been helping homeowners and business owners across Ireland for over 25 years, ensuring their properties are correctly insured and valued.
Here’s how we can help you stay protected:
Expert advice – understand what your policy really covers
Rebuilding cost guidance – we can help you arrange professional valuations
Tailored property cover – for both residential and commercial properties
Ongoing support – we’ll review your policy regularly to keep it up to date
Our goal is to make sure that if the worst happens, your insurance policy truly has you covered.
What You Should Do
If it’s been a few years since you last reviewed your property’s rebuilding value, now is the time to act.
Check your current sum insured
Review recent construction cost trends
Contact Power Insurances for professional advice
Update your policy to reflect the correct rebuilding value
Staying properly insured gives you peace of mind — knowing your home or business is protected no matter what happens.
Get in touch with us today to make sure your property is insured for its true value.
