Homeowners warned construction inflation could mean their property is underinsured 

If a home is insured for €200,000 but actually would cost €400,000 to rebuild, then it is only 50% insured. File Picture: Denis Minihane

Insurance companies are writing to households to warn them they may not get a full payout on a claim if their home is underinsured due to rising construction costs.

It comes after a review late last year by the Central Bank warning of underinsurance in the home insurance market more than doubling in recent years, from 6.5% in 2017 to 16.5% in 2022.