Many Irish homeowners over-insuring properties, warns brokers’ association

HOUSEOWNERS are over-insuring their houses because they are unaware that premiums are calculated on rebuilding costs, not the market value.

The market value of a property has little or no relationship to the cost of rebuilding your home, experts have warned.

Director of general services with the Irish Brokers Association (IBA), Brian McNelis said: “It is hugely important, especially in this economic environment, that homeowners are aware that their insurance premium is based on the value of replacing the house. There are probably many houses over-insured in Ireland now.”