Understanding Your Fire Damage Settlement
How reinstatement value is calculated, and why your first offer is rarely your final one.
Reinstatement, not market value
Most Irish household and commercial policies are written on a reinstatement basis. That means the insurer pays what it costs to rebuild or repair the property to its previous condition, not what the property would fetch on the open market. The two figures can differ enormously, and in rural Galway the rebuild cost is often the higher of the two. If your sum insured was set from a sale price rather than a rebuilding cost, that is worth checking before a claim ever happens.
What the rebuild figure has to include
A proper reinstatement figure covers demolition and site clearance, scaffolding, professional fees for the architect or engineer, local authority compliance, VAT where applicable, and the cost of bringing the rebuilt element up to current building regulations. Each of these is routinely understated in a first offer. Debris removal alone on a seriously fire-damaged building can run to five figures.
Smoke and water damage are part of the fire claim
Fire damage claims are rarely confined to what burned. Smoke penetrates soft furnishings, cavities and ductwork, and the odour persists long after surfaces look clean. The water used to extinguish the fire causes its own damage, often to floors below the seat of the fire. All of it is fire damage under the policy, and all of it should be in the schedule.
Alternative accommodation and loss of rent
If the house is uninhabitable, your policy almost certainly covers reasonable alternative accommodation for you and, in many cases, your pets. Landlords should look for loss of rent cover. These benefits are frequently left unclaimed because nobody mentions them, and they are time-limited, so they need to be activated early.
Why the first offer is rarely the final one
The first offer is an opening position based on a limited inspection, and it is made by someone acting for the insurer. It is not a valuation of your loss. Where a claim is properly documented, item by item, with costings that a quantity surveyor would stand over, the settled figure is commonly materially higher than the opening offer. You are entitled to negotiate, and you are entitled to have someone do it for you.
Where we come in
We assess the damage independently, prepare the full schedule of loss, deal with the insurer’s loss adjuster and negotiate the settlement. Our fee is agreed with you in advance. If you have had a fire, call us before you agree anything.
Dealing with a claim right now?
The first consultation is free and there is no obligation. Call 085 268 7871 or send us the details of your claim.
Call 085 268 7871