What is Guaranteed Replacement Cost and why does it matter to me?

How does DUAL Private Client keep my insurance up to date with inflation and rising costs each year?

Inflation can affect many aspects of an insurance policy from claim costs to building sums increases. DUAL Private Client applies index-linking at each renewal to protect policyholders from under insurance and to mitigate against inflation. Index linking is the technical term used by insurers which mean a percentage added to your sums insured each year that reflect current inflation rates.

What is Guaranteed Replacement cost?

DUAL Private Client understands that a customer’s experience during the claims process is vital to an insurer. Our aim is not only to provide a seamless and prompt service but to also repair, restore and replace all aspects of your home to the high level they were before the loss. We offer Guaranteed Replacement as an option on our Private Client product. This option is provided for any policyholder whose home has been appraised by an appointed surveyor. For qualifying customers whose home has been appraised, we extend our coverage beyond the limits of your insurance policy: covering the full reinstatement cost of the building and any upgrades required to keep your home in line with current building codes.  Policyholders should also maintain their standard of living whilst any repairs are ongoing; DUAL Private Client will house our clients in a comparable property for the duration of the claims process.

What is the difference between reinstatement costs and the market value?

The market value of the home is based on current property trends. These trends focus on factors such as supply and demand; location of the home and local amenities; the size of the property and the cost of land in that area. An estate agent an estate agent will take many of these factors into account for their decision to price a home for the market.

Reinstatement costs differ on an insurance policy from the market value but also from how the home may have originally been built. When evaluating how to reinstate a home an insurer must look at the most efficient way to return the client to their home, in contrast, if you are building a new home not only do you have time to plan out the construction but also to source materials and contractors, and at the best price possible. Some contributing factors that can affect the costs of construction can be availability of resources, such as materials and contractors, but also the quality of materials required to reinstate a home to its previous standard. There can also be scheduling issues and time constraints with contractors and getting the building back up to code.

DUAL Underwriting Ireland DAC (trading as DUAL Private Client) is regulated by the Central Bank of Ireland. Registered No. 633531. Registered office: 98 St.Stephen’s Green, Dublin 2 D02 V324.