Rebuilding Costs and Home Insurance

There has been an unprecedented increase in house rebuild costs in the past year according to figures from the Society of Chartered Surveyors Ireland (SCSI). This is due to numerous factors including increased price of building materials, supply-chain difficulties, and fuel price increases.

In most cases, insurers are index-linking the sums insured on home insurance policies in line with the Consumer Price Index at each renewal, with some insurers not index-linking at all. However even with the index-linked increases it could be likely that the sums insured are not adequate to contend with the surge in building costs of late. This poses a significant threat to clients if it transpires at the point of claim that their buildings are under-insured as the Condition of Average may apply.

 

Under-insurance occurs where the insured sums on your property is less than the value it will cost to reinstate or replace it. All buildings should be insured for their full replacement value, including the cost of demolition, debris removal and professional fees. Where a property is under-insured, the value of any claim is reduced by whatever proportion is represented by the level of under-insurance.

 

Examples

For example, Tom & Mary’s home has a full rebuild cost of €300,000 but they have it insured for €240,000 i.e. only 80% insured. (€240,000 / €300,000 = 80%).

 

Scenario A: There is a burst pipe in the downstairs of their home and the cost to repair is €50,000. Insurers would only pay €40,000 as they are under insured by 20%. (€50,000 @ 80% = €40,000). Tom & Mary would be out of pocket for the balance which is €10,000.

 

Scenario B: A fire breaks out and the entire house burns down and the cost to repair is €300,000 (ie. the rebuild cost). Insurers would only pay €192,000 as they are under insured by 20%. (€240,000 @ 80% = €192,000). Tom & Mary would be out of pocket for €108,000, which is €300,000 – €192,000.

 

As a result we are strongly advising all our clients to review their property insurance policies and sums insured to ensure that you have adequate insurance in place. For your convenience, please find a helpful link to the SCSI Rebuild Calculator which is free to use. Please bear in mind the calculator assumes a standard build and basic finish. House Rebuilding Calculator

 

How to calculate the rebuild costs of a house?

Calculate the internal area of your property by measuring the internal finish of the perimeter or party walls within the property, ignoring skirting boards, at each floor level. For two or three-storey houses, normally the upper floor is the same as the ground floor. However, if it is different, you should calculate each storey separately to retrieve a more accurate area calculation. Once you have all the areas, add them together to get the total sq.m area. Consult the SCSI calculator and choose the appropriate house type and region and insert your total floor area and add the cost of a garage if applicable. The rebuilding rates are for speculatively built homes i.e. estate-type homes and should not be used for other house styles such as one-off homes in the countryside or period properties.

 

Homeowners should consider getting professional advice to be assured that the correct rebuilding rates are used in these instances. You should add higher-than-average kitchen fittings, finishes, etc if appropriate. You should also add for any other outbuildings e.g. studio, office. A House Rebuilding Calculator and the 2022 Guide to House Rebuilding Costs is available from the SCSI free of charge.

If you would like to discuss your property insurance, please don’t hesitate to get in touch @ info@mkig.ie or 01 890 22 77.

 

PS. We would strongly recommend that you review your Contents sums insured as well to ensure accurate cover. Please note that bicycles, mobile phones, hearing aids, tablets and laptops must be specified on the policy to be covered. We have an Inventory Checklist available to help you calculate your Contents sums, just let us know if you would like a copy.

We’re Hiring: Commercial Lines Executive

Commercial Lines Executive

About MKIG

We are one of the leading Insurance brokers in north county Dublin. We have an extensive list of corporate and private clients whom we service with a wide range of insurance services and advice.

We strive to create for our dedicated team of professionals an environment that is based on the very best customer experience and best in class insurance products combined with expert and professional advice across multiple product lines.

 

Overall Purpose of the role:

To proactively engage with existing and new clients in the broking, placement, processing and administration of renewals, mid term adjustments, claims and new business.

Responsibilities Include:

  • Providing on going insurance advice and servicing to existing and new clients.
  • Prepare and issue pre renewal documents and ensure same are returned in a timely manner to allow us comply with issuing renewal terms in accordance with company procedures
  • Re broking, preparation and issuing renewal terms to clients.
  • Arranging payment including finance if required.
  • Issuing post renewal documents to clients in a timely manner
  • Ensuring adherence to Renewal timelines is achieved.
  • Support the company’s plan for retention and growth
  • Identify, develop and manage clients risks with information around products and services that may suit their needs.
  • Assisting in ongoing customer service
  • Provide advice and assistance on claims to existing clients as they occur.

Skills & Qualities Required:

  • Excellent Administrative and Organisational Skills to allow you react quickly to changing priorities
  • Ability to work on own initiative and as part of a team to meet strict deadlines and work in a busy environment
  • Excellent communication and client servicing skills
  • Excellent computer skills including word and excel
  • Minimum 3 years general insurance experience required.
  • Previous commercial insurance knowledge is an advantage but not essential
  • CIP qualification or working towards

Michael Kennedy Insurance Group is an equal opportunities employer and is regulated by the Central Bank of Ireland.

Please send your Curriculum Vitae in Strictest Confidence to: Mr. Fergal Kennedy – fergal@mkig.ie

 

New Vacancy at MKIG – Financial Services Executive

Financial Services Executive

Michael Kennedy Insurance Group is a well-established brokerage in Swords, North County Dublin with over 45 years’ experience. We are looking for a Financial Services Executive with a minimum of 3 years insurance experience to join our company.

The role will involve the sourcing and placement of new Protection, Pension, Investments and other financial services to new clients and contacts.

Responsibilities Include:

  • Prospecting, quoting and placement of Protection, Pension and Investments policies to a current client bank as well as fostering potential new clients.
  • On going Servicing of business including conducting financial reviews
  • Achieving income and new business targets, including generating leads for other areas of the business where the opportunity arises
  • Dealing with client queries and providing excellent levels of service to our clients
  • Responsibility for own portfolio of clients
  • Adhere to Central Bank regulations at all times

 Skills & Qualities Required:

  • Self Motivated and Results Driven
  • Experience in a sales environment within the financial services industry
  • Excellent Knowledge of all areas of financial services Market required
  • Excellent Organisational Skills
  • Good at problem solving
  • QFA or Grandfathered
  • Ability to work on own initiative and as part of team
  • Excellent communication and client service skills

MKIG is an equal opportunities employer and is regulated by the Central Bank of Ireland.

Please send Curriculum Vitae in Strictest Confidence to:

Mr. Fergal Kennedy – fergal@mkig.ie

Innovation House, 3 Feltrim Estate Drynam Road, Swords, Co. Dublin

Section 137 Non Resident Director Bonds

Every company in Ireland must have at least one EU Resident Director. For companies that don’t we can arrange a Section 137 Bond which is issued in accordance with the Companies Act 2014. The Section 137 bond is a guarantee that you will pay a specified amount of money if called upon. The company that underwrites the Section 137 bond (the guarantor) will honour the obligation to pay an agreed amount if called upon. A Section 137 bond is different to an insurance policy.

 

How is a Section 137 Bond called upon?

These particular Section 137 bonds are called upon if the company fails to pay a fine or penalty, refer to the link below for more information:

https://www.cro.ie/Portals/0/Leaflets/Leaflet%2017%20v3.2%202014%20Act.pdf

 

Brexit

With the UK now officially no longer part of the EU the transition period and provisions have commenced and will remain will be in place until 31 December 2020.

If no agreement is reached within the transition period or no extension is granted, then Irish registered companies with UK resident directors will be required to appoint an EEA resident director or obtain a Section 137 Bond or apply for Real and Continuous Link with the State.

A Section 137 Bond is a surety bond provided for € 25,000 and lasts for a 2 year period. This bond must be provided to the Companies Registration Office ( CRO) as part of the filing of the company’s accounts.

The Section 137 Non Resident Bond is a legal requirement and must be held in place once there is no EEA resident director in place. The Section 137 bond is put in place for a 2 year period and renewed bi annually thereafter.

MKIG can assist in the arrangement of a Section 137 Bond, please make contact with Fergal Kennedy fergal@mkig.ie or on 353 1 8902277 to discuss your options.

New Vacancy at MKIG – Personal Lines Executive

Personal Lines Executive

Michael Kennedy Insurance Group is a well-established brokerage in Swords, North County Dublin with over 45 years’ experience. We are looking for a Personal Lines Executive with a minimum of 1 years insurance experience to join our company.

 

Responsibilities Include:

  • Issuing renewal documentation to clients and following up to ensure retention of the account
  • Issuing motor, home, marine & travel insurance new business quotations and closing sales
  • Servicing of accounts including mid-term alterations
  • Arrange finance where required for clients and responsibility for collecting premiums
  • Achieving personal lines renewal income and new business targets, including generating leads for personal and commercial lines where the opportunity arises
  • Dealing with client queries and providing excellent levels of service to our clients
  • Responsibility for own portfolio of clients
  • Adhere to Central Bank regulations at all times

 

Skills & Qualities Required:

  • Experience in a personal lines (minimum 1 year)
  • Excellent Knowledge of Personal Lines Market required
  • Excellent Organisational Skills
  • Good at problem solving
  • APA Personal, CIP or Grandfathered
  • Knowledge of Relay is a distinct advantage
  • Ability to work on own initiative and as part of team
  • Excellent communication and client service skills

 

MKIG is an equal opportunities employer and is regulated by the Central Bank of Ireland.

 

Please send Curriculum Vitae in Strictest Confidence to:

Mr. Fergal Kennedy

MKIG, The Plaza, Swords, Co. Dublin

fergal@mkig.ie

New Vacancy at MKIG – Claims Executive

Claims Executive

Michael Kennedy Insurance Group is a well-established brokerage in Swords, North County Dublin with over 45 years’ experience. We are looking for a Claims Executive with a minimum of 2 years claims and insurance experience to join our company.

 

Responsibilities Include:

  • Proactive dealing with all aspects of claims handling from notification to settlement
  • Handling all clients queries and providing excellent levels of customer service so that claims are dealt with as efficiently as possible
  • Ensuring clients are kept advised of all developments relating to their claim
  • Implement agreed claims handling procedures
  • Adhere to Central Bank regulations at all times

 

Skills & Qualities Required:

  • Experience in a claims environment (minimum 2 years )
  • Excellent product knowledge required
  • Very good negotiation and problem solving skills
  • Good Organisational Skills with the ability to work on own initiative and as part of team
  • Excellent communication and client service skills
  • CIP or Grandfathered and fully CPD compliant

 

MKIG is an equal opportunities employer and is regulated by the Central Bank of Ireland.

 

Please send Curriculum Vitae in Strictest Confidence to

Mr. Fergal Kennedy

MKIG, The Plaza, Swords, Co. Dublin

fergal@mkig.ie