The average cost of rebuilding a home has risen by 7% nationally in the past year, according to the Society of Chartered Surveyors Ireland.
That is a slightly faster pace of price growth than was seen in 2024, but is slower than the 12% increase recorded in 2023.
Rebuild costs have also risen at a considerably faster pace than general construction inflation, which the SCSI estimated to be at 3% earlier this year.
According to Gerard O'Toole, president of the Society of Chartered Surveyors, this difference was due to a number of factors.
"Bear in mind rebuilding by its nature includes demolition and there are significant levies," he said, citing the recently-introduced Waste Recovery Levy and the Landfill Levy, which was brought in over a year ago.
"The nature of these types of works - they're builders employed doing one-off builds, small extensions and house refurbishments - they're typically the type of builder that are going to be rebuilding in the event of fire and storm damage," he said. "It's very labour intensive and that generally reflects much higher costs."
The SCSI report also shows a wide variance in rebuild inflation across the country - with average costs up 3% in Cork, but as much as 9% higher in the north-west.
Rebuild costs in Dublin are estimated to be 5% higher year-on-year, costs in Galway and Limerick were 7% higher while they had risen by 8% in Waterford and the north-east.
This reflected the low availability of skilled labour in different parts of the country, according to Mr O'Toole.
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"It's really driven by the level of activity in a region in any given time and often in the smaller markets there's just a more limited pool of tradespeople," he said. "The country, in terms of broad economic output, is at full employment and there's a significant capacity problem in terms of the construction industry.
"There's just that limited pool - we are upwards of 80,000 short in skilled labour across the construction industry and it's a significant ongoing problem."
If a property is under-insured the homeowner would be left to cover any shortfall in the event of a rebuild.
This would also impact the amount an insurer would pay out in the event of a partial rebuild.
"For example, if somebody with a three bedroom, semi-detached house somewhere in the country - the actual cost is about €400,000 to rebuild it in the event of a total claim," said Mr O'Toole. "If they're insured for €300,000 and the claim is maybe €100,000, they're going to get €75,000 off their insurance company, leaving a deficit of about €25,000.
"The insurance company has, within their fine print, got a policy that says if you're inadequately insured you're going to have to pay the difference."
This, he said, is why it is critical for homeowners to check their policy and make sure it covers the estimated cost of their home's rebuild.
However Mr O'Toole said increasing the amount an insurance policy covers does not automatically mean a similar increase in a customer's premium - and he encouraged people to shop around and ensure they are getting the best deal possible.
"It's a very competitive market," he said. "Ring around, contact your existing insurance company - but also contact others and see what the best rate is."
