While I have no function in relation to the regulation or oversight of insurance providers or insurance based products, I am acutely aware of the upset and distress faced by many homeowners who have been affected by pyritic heave and am conscious that their difficulties can be exacerbated by the withdrawal of household insurance cover.
Nevertheless, the provision of insurance cover and the price at which it is offered are commercial matters for insurance companies and their decisions are based on the completion of assessments by such insurers of the risks involved. Ultimately, these matters are considered by insurers on a case-by-case basis and neither the Government nor the Central Bank can direct insurers to provide home insurance cover to specific individuals.
My Department understands that Insurance Ireland, which is the representative body for insurance companies in Ireland, operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Their service can be contacted at Tel: (01) 676 1914 or by email at iis@insuranceireland.eu.
One of the key recommendations of the Report of the Pyrite Panel (July 2012) was the development of a protocol which would facilitate the testing and categorisation of dwellings to establish -
- if there is reactive pyrite in sub-floor hardcore material, and
- whether it has caused pyritic heave.
In response to this recommendation, I.S. 398-1:2013 Reactive pyrite in sub-floor hardcore material – Part 1: Testing and Categorisation was published by the National Standards Authority of Ireland in January 2013 and provides the means by which dwellings which may be affected by pyrite can be tested and categorised in order to assist in identifying appropriate options for remediation. In broad terms, the standard sets out a two-step process to facilitate the testing and categorisation of dwellings.
Firstly, the standard requires that a Building Condition Assessment be carried out; this comprises a desktop study and a visual non-invasive internal and external inspection of a dwelling, by a competent person, to establish the presence or absence of visible damage that is consistent with pyritic heave and to quantify the extent and significance of such damage in that dwelling. Damage ratings of 0, 1 or 2 can be assigned to a dwelling under this process.
Secondly, the results of the Building Condition Assessment will inform whether sampling and testing of the sub-floor hardcore of the dwelling will be required in order to confirm the presence or otherwise of reactive pyrite in the subfloor hardcore material. Dwellings which have been tested and the hardcore is shown not to be susceptible to expansion are classified as Category A (i.e. green certificate). These dwellings have a negligible risk of pyrite damage given testing has demonstrated that the hardcore is not susceptible to expansion; any damage that may be visible in such dwellings is likely to be attributable to other causes.
While there is no requirement on any homeowner to carry out testing on their property in order to confirm the presence or otherwise of reactive pyrite in the subfloor hardcore, the standard does provide an objective, reliable and robust means by which dwellings can be tested and categorised. Accordingly, where insurance cover may be at issue, it is open to homeowners with a damage rating of 1 to proceed with the testing of the hardcore material to establish whether it is susceptible, or not susceptible, to expansion.
In the case of dwellings remediated under the pyrite remediation scheme, all works will be completed by competent builders to the requirements of I.S. 398-2:2013 Reactive pyrite in sub-floor hardcore material — Part 2: Methodology for remediation works , and will be overseen by construction professionals in accordance with the requirements of the Pyrite Resolution Board and the Housing Agency. There will also be oversight by construction professionals from within the Housing Agency itself to ensure that the works will be fully compliant with the relevant requirements of the Building Regulations, that proper materials are used in the works and that remediated dwellings will be restored to the quality expected by the homeowners. At the end of the works, each homeowner will be provided with certification to confirm that their home has been remediated to the requirements of the relevant standard.
In this regard, I have written to Insurance Ireland to confirm the range of measures that are now in place to mitigate future risk of pyritic damage to dwellings remediated under the scheme and have signalled that my Department is available to meet with representatives from the insurance sector to address any concerns they may have in these matters.
