Understanding and Avoiding Under-insurance on your Irish Home


The growing trend of underinsured properties makes homeowners lose significantly on damage claims. Find out how to avoid it and amend your home insurance policy on time.


At PDLA, our experience as loss assessors has uncovered a concerning trend: a significant increase in underinsured properties among the claims we manage. This issue often comes to light too late for the property owners we assist, usually in the midst of the claims process, leaving minimal room to correct the shortfall in insurance coverage

The Rise of Underinsurance

Underinsurance often results from property owners not adjusting their policy's insured value at renewal time as years go by. Given the fluctuating nature of construction costs in the Irish Market, the insured value of a property should be reviewed and potentially adjusted every time a policy is renewed. This step is vital because most insurance policies include an "average clause," which adjusts the settlement of a claim downwards to reflect the degree of underinsurance.


Real-Life Examples of Underinsurance

  • Example 1: A property insured for €200,000 has a rebuild cost of €250,000. This underinsurance of 20% means any claim settlement could be reduced by the same percentage.


  • Example 2: A property insured for €300,000, with a rebuild cost of €400,000, is underinsured by 25%. Thus, a quarter of any claim settlement might be withheld.


  • Example 3: A property insured for €500,000 faces a rebuild cost of €600,000. This underinsurance of 16.67% would reduce claim settlements by nearly 17%.


Ensuring Adequate Coverage

Determining the proper insured value of your property involves more than considering its market price; it requires an assessment of the total rebuild cost. This often includes demolition, site security, adherence to current building codes, inflation during construction, and professional fees.

The Society of Chartered Surveyors Ireland (SCSI) rebuild calculator is a valuable tool for accurately assessing your property's insured value, accounting for various factors such as property size, type, location, and additional features.

Access the SCSI house rebuild calculator here: SCSI House Rebuild Calculator


How PDLA Can Help

As loss assessors and a qualified chartered surveyor, PDLA specialises in helping property owners navigate the complex claims process, ensuring they are adequately prepared and protected against underinsurance. If you're concerned about your property's coverage or if you're facing a claim, our expertise can guide you through ensuring you receive a fair and just settlement.


Concerned About Being Underinsured?

If you're unsure about your property's insurance coverage or if the examples above have raised concerns, it's crucial to take action. Proper insurance coverage is your safety net against unforeseen financial strains in the event of a claim.

For expert advice and support in ensuring your property is adequately insured, contact James Armitage at PDLA. We're here to assist you in every step of the claims process, from assessing your insurance needs to negotiating with insurers on your behalf.


Don't wait for a claim to discover you're underinsured. Reach out to PDLA today, and let us help you secure your property's future.


Navigating Storm Damage Claims on Your Irish Property

What to Do Immediately After Water Damage in Your Property

By Rachel Bradley • January 8, 2026
New Title

Mindful Merriment: Staying Aware of Household Hazards Throughout the Holidays

By Alastair roe • December 18, 2025
As we enter the height of the Christmas season, the joy of festivities brings with it a unique set of risks to our homes. At Property Damage Loss Assessors , we see a significant rise in insurance claims during December—many of which could be avoided with increased awareness and caution. To ensure your holiday remains stress-free, we have highlighted the key hazards that require your utmost attention this year. Fire Safety: Awareness in the Heart of the Home The combination of dry decorations and increased heat sources makes fire safety a primary concern. High levels of vigilance are required in the following areas: Chimney Fires: With fireplaces working overtime, ensure your chimney has been professionally swept. A buildup of soot or bird nests can lead to devastating chimney fires that spread quickly to the rest of the structure. Candles: Never leave lit candles unattended or near flammable materials like curtains or Christmas trees. Always extinguish them before leaving a room or going to bed. Christmas Lights: Check old decorative lights for frayed wires or loose connections. Avoid overloading sockets and always turn off all festive lighting when you leave the house or sleep. Cigarettes: If hosting guests, ensure that smoking materials are disposed of safely in deep ashtrays. Embers in a wastepaper bin are a common cause of late-night house fires. Security Awareness: Preventing Seasonal Burglaries Unfortunately, the holiday season is also a peak time for opportunistic crime. To protect your home from burglaries , keep gifts and high-value items out of sight from windows. Ensure all doors and windows are securely locked, and if you are heading out for a festive event, consider using timer switches on lamps to give the impression that the home is occupied. Escape of Water: Protecting an Empty Property If you are planning to travel to visit family this Christmas, water damage is a major risk that can occur in your absence. A small leak from a frozen or burst pipe can cause catastrophic damage if left running for several days. To prevent catastrophic water damage during a cold snap, remain vigilant against frozen pipes . If you are leaving your property over Christmas, ensure your heating is set to a "frost protection" mode and turn off the water at the mains stopcock to prevent an undetected escape of water . Taking a moment to correctly drain your system can save you from the stress of a major flood and a complex insurance claim. By staying aware of these hazards, you can protect your property and your peace of mind. However, should the unexpected happen, Property Damage Loss Assessors are here to help you navigate your insurance claim and secure the settlement you need to get back on track. Ultimately, Christmas is a time for celebration and making memories with loved ones. By staying mindful of these common hazards and taking small, proactive steps to secure your property, you can ensure your holiday remains joyful and uninterrupted. From all of us at Property Damage Loss Assessors , we wish you a very safe, happy, and hazard-free Christmas season.

Insurance Policy Essentials: What Irish Homeowners Often Overlook Before Filing a Claim

By Alastair roe • December 4, 2025
Most Irish homeowners only read their insurance policy when something goes wrong. Unfortunately, this usually means they discover key exclusions and conditions at the worst possible moment. Understanding the details of your home insurance policy in advance can prevent disputes and ensure that you know what to expect when filing a claim. Commonly Misunderstood Policy Terms 1. Gradual Damage Exclusions Irish home insurance policies rarely cover issues that develop slowly over time. This includes long-term roof leaks, slow plumbing leaks, dampness, mould, and rot. Insurers frequently reject these claims because they consider them maintenance issues rather than sudden events. 2. Maintenance Requirements Most policies require homeowners to keep the property in good condition. If damage is linked to neglect, insurers may reduce or decline the claim. Examples include worn flashing, loose tiles, deteriorated pipes, or blocked gutters. 3. Confusion About Trace and Access Many homeowners assume their insurer will pay to locate the source of a leak. Some policies include this benefit, but others offer limited cover or none at all. Understanding whether trace and access is included is important, as identifying the source of a leak can be more expensive than repairing it. Why Claims Get Declined  1. Insufficient evidence Lack of photos, videos, or proof of sudden damage can lead to disputes with insurers. 2. Repairs performed too early Fixing damage before reporting the claim removes crucial evidence and can weaken your case. 3. Misinterpreting what the policy covers For example, roof damage is not automatically considered storm damage. Insurers often require proof of strong winds in the area and evidence that the damage occurred during the storm. How to Prepare Before Filing a Claim 1. Review your policy regularly A yearly review can help you stay informed about your coverage and any changes the insurer may have made. 2. Know the difference between sudden damage and gradual deterioration Sudden damage is typically covered, while gradual deterioration is generally excluded. 3. Keep maintenance records Photos, invoices, and receipts can protect you if the insurer questions the condition of the property before the incident. 4. Document damage immediately High-quality evidence is essential when dealing with insurance companies. Understanding your policy before you file a claim can save time, stress, and unnecessary costs. When you know what is covered and what is excluded, you are better prepared to take action after an incident. If you want help interpreting your policy or handling a claim, Property Damage Loss Assessors can provide professional support from start to finish. Call James today to discuss the damage to your property and get expert guidance for your situation.