Home insurance is mandatory in Ireland when getting a mortgage. If you are planning on simply taking the policy offered by your lender, then think again! You are entitled to choose and select your own insurance company and insurance policy. Once you have adequate cover and meet the insurance requirements of your bank or lender then you have fulfilled your statutory obligations and covered yourself sufficiently. But it is your entitlement to seek out your own insurance and to find the best price for your specific needs.
If you simply take the first policy on offer from your Bank or lender then you may end up not only paying more than you need to, but you may also end up with a policy that doesn’t cover you appropriately, for your own specific personal insurance cover and requirements!
So put in the leg work a ‘do your research’, when it comes to buying home insurance Ireland, there are some important aspects to consider that we have outlined below.
Calculate Your Rebuilding Cost Correctly
Be sure to calculate your rebuild cost to make sure you are buying the insurance cover you need to fully rebuild your property back to a fully liveable state. Be sure to cover all of the costs and expenditure needed to get your home back to the condition you would need to move back in (turn key condition).
This free calculator from the Society of Chartered Surveyors Ireland makes it easy to calculate your rebuilding cost.
Undervaluing your home contents and rebuild can be an easy way to reduce your house insurance Ireland cost. But, if your insurance company applies the “average clause”, it will limit what you could claim, in which case, you will have to cover the difference from your own pocket.
For instance, if the contents of your home are worth €50,000 but you value them at only €25,000, you are underinsured by 50%. If your contents are stolen, destroyed or damaged, your insurer will only pay 50% of the total damage. So a claim for €20,000 will only get you a €10,000 insurance pay out.
Think Twice Before Choosing Higher Excess
Your excess is the sum you pay when making any claim. The standard excess can range anywhere between €250 and €500 for small insurance claims.
Opting for a higher excess can reduce your home insurance cost. But, when the time comes to make a claim, you will be paying a larger sum out of own pocket.
This can put you in a spot when making claims for water damage and subsidence. The average pay out for these types of claims usually ranges from €500 to €2500+. If the damage and repair is low e.g. €500 your excess could be this amount anyway.
When pushed for time, the simplest option is to let your existing policy roll over for another year. But that’s the easiest way to simply pay more for your house insurance.
Be sure to shop around, dig deep and compare quotes and features before you make a choice. Going with an insurance broker like Britton Insurance can offer many benefits when shopping around, not the least of which is the fact that you will get a better choice across the insurance market.
Things Your Insurer Should Know
To ensure that you are fully covered by your particular policy, you must make yourself familiar of any factors or clauses that could invalidate your policy.
For example, Airbnb usage can attract a hefty penalty if you don’t notify your insurer. If you choose to let your property, be it on Airbnb or by any other means, you must inform your insurance company.
Likewise, if you are operating a business from your home, you should declare it to your insurance company even if it’s a simple ‘one man’ small operation. A failure to notify your insurance company could be interpreted as non-disclosure, which could invalidate your policy.
Talk to the Specialists at Britton Insurance Today!
At Britton Insurance, we are here to take care of all the legwork when it comes to buying home insurance in Ireland. We have a team of experienced home insurance specialists with extensive knowledge at getting the right cover at the right price for our customers. Give us a call on 074 9721 304 or click here to request a quote.