"An insurance gap is when the policy's coverage limits are lower than the actual cost to rebuild or replace the property. This is also known as under-insurance, where a property may no longer be insured for its full rebuild cost."
"Mr Kelly warned that under-insurance often only comes to light when a claim is made. He said there is a high risk a homeowner who is insured for €300,000, who then adds a €100,000 modular home, will not update their insurance cover."
"Under-insurance is far more common than people realise; even the smallest percentage can still cost you thousands when a serious claim is made."
New modular garden rules may encourage homeowners to add modular units without updating insurance policies. This can lead to under-insurance, where coverage is insufficient to cover rebuilding costs. Insurance claims expert Trevor Kelly warns that homeowners could face significant financial shortfalls if they do not adjust their policies after adding new structures. The risk of under-insurance often becomes apparent only when a claim is filed, potentially resulting in substantial out-of-pocket expenses for homeowners.
Read at Irish Independent
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