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
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.
Storms and high winds are becoming increasingly common across Ireland, especially during the winter months. These events often lead to property damage that ranges from minor roof issues to major structural problems. Understanding how storm damage occurs and how to respond correctly is essential for any homeowner. Making the right decisions early on can prevent unnecessary repair costs and improve the outcome of an insurance claim. Common Types of Storm Damage in Ireland 1. Roof Damage The roof is one of the most vulnerable parts of a home during strong winds. Tiles can become loose or fall off entirely, leaving gaps that allow rainwater to enter the property. Even a single missing tile can cause significant internal water damage. 2. Damage from Falling Trees or Branches During storms, heavy branches or entire trees can fall onto roofs, sheds, cars, or fences. Even if the tree comes from a neighbour’s garden, the affected homeowner typically files the claim. 3. Chimney and Masonry Problems High winds often affect older brickwork. Chimney pots, flues, and masonry can shift or crack, which may lead to structural concerns or water ingress. 4. Water Penetration from Wind-Driven Rain Strong winds push rainwater into places where it would not normally reach, such as under flashings, through vents, or into roof edges. This can cause stained ceilings, damp walls, mould growth, and damaged plaster. What To Do After a Storm 1. Assess the damage safely The first priority is safety. Avoid climbing onto the roof. Instead, inspect the property from the ground or use a phone camera with zoom. 2. Document the condition of the property Take detailed photos and videos of missing tiles, broken gutters, fallen branches, cracks, and interior water damage. High-quality documentation helps strengthen an insurance claim. 3. Make temporary protective measures Cover open areas with tarps or strong plastic sheets to prevent more rain from entering the home. Insurers expect you to limit additional damage, but they also expect you to avoid permanent repairs until the inspection is completed. 4. Notify the insurer quickly Reporting storm damage promptly is important. Delays can lead insurers to argue that the damage might be due to poor maintenance instead of the storm. Frequent Causes of Claim Reductions Insurers sometimes reduce or decline storm-related claims for reasons such as poor maintenance, insufficient evidence, or pre-existing damage. For example, if gutters were already blocked or roof tiles were already loose, insurers may argue that the damage was not caused solely by the storm. Storm and wind damage may be unavoidable, but losing out on a valid insurance claim does not have to be. Proper documentation, prompt reporting, and expert support can help you secure a fair outcome. If you need assistance with a storm damage claim or want a professional assessment, Property Damage Loss Assessors can help you navigate the process. Call James today to discuss your storm damage and get reliable guidance for your claim.
When property damage occurs, most homeowners instinctively begin cleaning up the mess or repairing what has been broken. This reaction is completely understandable, especially when the situation feels stressful or overwhelming. However, starting repairs or removing damaged items too soon can seriously weaken an insurance claim. Timing plays a crucial role, and understanding what to do in the first 24 hours can make a major difference in the outcome of a claim. Insurance companies rely heavily on clear visual evidence to assess a claim. Loss adjusters need to understand exactly what happened, how severe the damage is, and whether the policy covers the issue. If the property has already been cleaned or fixed by the time the claim is reported, insurers may question the extent or even the cause of the damage. This is why the first step after any incident should always be to document the situation before any repairs take place. Why Timing Matters The moment you discover damage, the clock essentially starts ticking. Insurers often require evidence that shows the original condition of the property. If you remove flooring, throw out damaged furniture, repair a pipe, or clean up water before taking proper photos and videos, valuable evidence disappears. For example, if a pipe bursts and causes water damage, cleaning up the water and repairing the pipe before reporting the issue can lead insurers to question how serious the incident really was. The same is true for roof leaks, storm damage, structural issues, oil leaks, and electrical faults. Irish insurers are known for carefully evaluating whether damage was sudden or whether it could have been gradual. Without proper evidence, it becomes harder to prove your case. What To Do in the First 24 Hours 1. Document thoroughly Take photos and videos of everything. Include wide shots of the affected area, close-ups of specific damage, and footage showing the cause of the issue. Make sure the lighting is good and that you capture multiple angles. 2. Prevent further damage Insurers expect you to take reasonable steps to stop the situation from getting worse. Examples include turning off the mains water supply, isolating electricity in a flooded area, or placing a temporary cover over a broken window. These actions help, as long as you do not make permanent repairs. 3. Avoid removing damaged items Do not throw away wet carpets, broken tiles, burnt items, or damaged appliances. Even if they appear ruined, they serve as evidence. 4. Report the claim early Most policies in Ireland require homeowners to notify the insurer within a reasonable timeframe. Reporting within one or two days is ideal, and it reduces the risk of disputes. Common Mistakes to Avoid Homeowners frequently make the mistake of trying to tidy up before taking photos. Another common issue is assuming insurers will take their word for the extent of the damage. Insurers rely on evidence, not verbal descriptions, so documentation is essential. The best way to protect the success of an insurance claim is to act quickly, document everything, and avoid repairs until the necessary evidence has been captured. Cleaning and rebuilding can always take place later. If you want expert help with documenting your loss or dealing with your insurer, Property Damage Loss Assessors can guide you through the full process. Call James today to discuss the damage to your property and get professional advice before moving forward.