House Price Dropped, Has the Building Sum Insured Dropped Too?

[Conshine]

Looking into renewing home insurance - building & contents.
Say my house was worth 300K last year.
Mortgage company said I needed to insure it for 200K - This would be the cost of rebuilding etc, if it needed building from scratch.

Now house is worth 10% less (if media is to believed), say 270K.

Do I insure the house for 10% less this year, ie, 180K?

Am thinking yes, but would Mortgage company agree?

Do I need to ask them?

Thanks!

 

[ClubMan]

The market value and reinstatement costs are totally different things. Don't assume that a, say, 10% drop in the former means a 10% drop in the latter. . If you want to reassess the rebuilding costs for insurance purposes then at least look at the www.scs.ie guide to rebuilding insurance and/or get a survey done.

 

[Simeon]

You would build a very good house for Eu 270K ......... unless you have an exceptionally humungous lobby Conshine!

 

[LDFerguson]

You would build a very good house for Eu 270K ......... unless you have an exceptionally humungous lobby Conshine!

Worryingly, I get that joke.

Conshine said his rebuilding cost was €200,000.

I wonder will the SCS be reviewing their rebuilding costs soon, as anecdotally I hear that the actual cost of getting building work done has come down recently, largely due to the reduced demand for builders nationwide.

 

[MrMan]

The cost of labour might come down but apparently thecost of materials is still rising so I don't see how the reinstatments costs will be effected at the moment. will 20k make all that much of a difference?

 

[ClubMan]

I wonder will the SCS be reviewing their rebuilding costs soon, as anecdotally I hear that the actual cost of getting building work done has come down recently, largely due to the reduced demand for builders nationwide.

The SCS normally update their guide annually around September/October.