Central Bank: Insurance firms must warn customers they may be underinsured due to inflation

Rebuild costs have soared by 17% in Cork, 18% in Limerick, and 24% in Waterford, so homeowners may not have adequate cover

The warning comes after the Society of Chartered Surveyors Ireland said the average rebuild cost for a home has surged by an average of 21% in the last year. Stock picture

The Central Bank has warned insurance companies they must do more to warn customers that their homes are underinsured following the recent rises in construction costs. 

The regulator has written to insurance firms outlining the findings of a review it conducted which found under-insurance in the home insurance market has increased from 6.5% in 2017 up to 16.5% in 2021. The review found that not all firms were sufficiently highlighting key risks to consumers.