Rebuilding a house in Ireland has risen in cost by over 3% during the past year.

Redevelopments in Cork have seen the sharpest rise, with a 3.8% cost increase, according to a report by the Society of Chartered Surveyors (SCS).

Dublin city falls below the average, with rebuild costs growing by around 2.7%.

Sharp cost increases have also been noted in Galway, Waterford and Limerick.

The aim of the survey was to calculate mounting insurance premiums, to cover customers should their homes need rebuilt, after complete destruction.

Rebuild costs will normally not be the same as the house's market value.

Detached bungalows saw the highest increase in possible rebuild costs, regardless of location.

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The SCS has stressed the importance of accurate insurance valuations, even though it described the cost increases as minimal.

SCS President Sean McCormack said: "We are pleased to find costs in rebuilding homes have not risen too much for the fourth consecutive year, and are actually running a little lower than general inflation this year."

However, Mr McCormack did note the increase in cost, and warned homeowners of the dangers of not having adequate cover.

"Under-insuring can, sadly, in the unfortunate event of a claim, lead to a large gap between what is paid out by the insurance company and the actual costs of rebuilding the home. Insuring it for too much, on the other hand, leads to unnecessarily high premiums," added the SCS President.

According to the report the most costly rebuild would be a two-bed terraced house in Dublin, valued at €2,211 per square metre. This is followed closely by a similar dwelling in Limerick, at €1,715 per square metre.

The rebuild that would cause the least damage to your wallet would be repairing a destroyed detached bungalow in Waterford, at €1,420 per square metre.

Detached bungalows cost the lowest to rebuild in Cork, Galway and Waterford areas.

(PR/JM)