The national average cost of rebuilding a home in Ireland rose by just over a fifth last year, the Society of Chartered Surveyors calculates.

The SCSI House Rebuilding Guide is used by homeowners to calculate the rebuilding costs of their home for insurance purposes.

It shows that the increase in rebuild costs ranges from 14% in Dublin to 26% in the northwest, with the national average increase registering at 21%.

Although Dublin recorded the lowest increase, the capital has the highest rebuild costs while the northwest, which recorded the biggest increase, has the lowest, the report noted.

The report comes as the construction industry continues to grapple with input price inflation for raw materials and labour.

The SCSI said not all of the increases could be attributed to construction inflation.

It noted that the specifications and designs used for the six house types had been updated this year which had an impact on pricing.

"Although pricing pressures on certain materials such as timber, plasterboard and insulation have eased slightly, rising fuel and energy costs are continuing to affect the supply chain," Kevin Brady, Chair of the Quantity Surveyors Professional Group in the SCSI said.

"This is a direct result of the war in Ukraine and is leading to a sustained increase in the price of energy intensive materials such as concrete, aggregates (infill material), steel and paint," he said.

Coupled with these material price increases, ongoing labour shortages show no sign of abating and are also pushing up rebuild costs," he added.

Regional differences

A breakdown of the figures shows that the minimum cost of rebuilding a 3-bedroom semi-detached house in Dublin is €268,000.

The cost of rebuilding a similar house in Waterford is €225,000 - a difference of €43,000.

The SCSI urged homeowners ensure that they have the correct reinstatement value of their home for insurance purposes.

"Homeowners need to ensure their house is adequately insured so that in the event of a total or partial loss situation, such as a fire, they are covered under their insurance policy when reinstating or rebuilding," Mr Brady said.

"While these increases are considerable it does not necessarily mean the premium will increase significantly and consumers should shop around when seeking insurance cover for their homes," he added.

Homeowners who are not adequately insured are warned that they may be penalised under their policy by having to pay a certain proportion of the reinstatement costs.

"Where the insured sum is only 75% of the total reinstatement cost, you will only receive 75% of the agreed cost of reinstatement, whether the claim is made for partial replacement or total loss," Kevin James, SCSI President explained.

"It's also important that homeowners reassess their cover to take account of any changes such as home office extensions or garden offices. These have become increasingly popular with more people now working from home, but they need to be included in the house insurance," he added.

A House Rebuilding Calculator and the 2022 Guide to House Rebuilding Costs is available from the SCSI free of charge.