House Insurance Ireland

House insurance in Ireland was the topic of a major comparison study by the Financial Regulator in 2008. This study involved comparing insurance quotes from a number of companies such as Royal & Sun Alliance, Quinn Direct, Eagle Star, Hibernian, Allianz, FBD, and AXA. These quotes were for different types of properties in different locations throughout the country.

No single insurer was cheapest overall, but, according to the results of the study, some of the cheapest house insurance in Ireland could be got from Royal & Sun Alliance, who gave the best quotes in half the cases. Their average quote was only €267.50, compared to an average of €353.13 for AXA Insurance. In one case, they quoted €415 for a house insurance policy, for which Hibernian Aviva quoted a hefty €781! And, when it came to contents insurance, in one instance, AXA exceeded the Royal & Sun Alliance quote by an incredible 221%!

Using the average house insurance quotes given, the results of the survey were:

Best: Royal & Sun Alliance
2nd: Quinn Direct
3rd: Eagle Star
4th: Hibernian Aviva
5th: Allianz
6th: FBD
7th: AXA

However, the survey was carried out on a very small sample, so these results should only be used as a general guide. You need to obtain as many quotes as possible yourself to ensure you get the best deal available to you.

Types of House Insurance in Ireland

You can buy insurance directly from insurers over the telephone, internet, or by postal mail, and also from insurance brokers who can deal with insurance companies on your behalf.

Although there are different types available, most home insurance policies are sold as a single policy that includes:

Buildings insurance, which covers for damage to the building.
Contents insurance, which covers loss/damage of the contents of your house.
All-risks cover, which covers loss/damage to valuables (even when outside your home).
Liability insurance, which covers injury to other people in or around your house.

All house insurance quotes in Ireland will include the same basic level of cover, but there can be a big difference in what is excluded and what extras are included. This is where the big difference in prices arise; therefore, if you take out a house insurance policy, you should remember that cheapest isn't always the best. It's extremely important that you read the fine print and make sure you understand what is and isn't covered on it.

Buildings insurance:

Buildings insurance covers everything that you cannot take away if you move house, such as the roof, the walls, windows, doors, and permanent fittings like tiled floors, bathroom fittings, and fitted kitchen units.

Always insure your house for the amount it would cost to re-build it. This is called the reinstatement value. This is not the same as the market value, which is what you would get if you sold it. It's very important that you don't insure it for too little, or too much: If you insure it for too little, your insurance policy might not pay enough to have the house re-built if it is destroyed. If you insure it for too much, you'll be paying more than you need to and, if your home is destroyed, you'll still only get the actual cost of re-building it.

Contents insurance:

Contents insurance covers objects that you put into your home, such as furniture, pictures, clothes, electrical items, and other personal belongings. You should insure your contents for the amount it would cost to replace them if they were stolen or destroyed. It's worth taking a bit of time to calculate these costs, however, there is a limit on the value you can claim for any individual item. Therefore, you might need to list any very valuable items, such a high-cost jewellery or antiques, separately on your policy.

Also, make sure your policy covers you on a 'new-for-old' basis. This means that you can but a new item to replace the old one that have been destroyed or stolen.

All-risks cover:

This is usually an optional extra on most house insurance policies and it covers the loss or theft of certain items, such a jewellery, both in and out of your home. It normally costs more than standard contents insurance. With this type of cover, you can either list individual items and declare their value, or simply choose an overall value for unspecified items, without having to list every individual item. There will be an upper limit on the value you can attach to the policy in either case.

Liability insurance:

Liability insurance is insurance to cover the costs that arise if you are legally liable for damage to somebody else's property, or injury to their person, when in, or around, your home.

Most home insurance policies will include liability up to certain limits, but you can usually buy additional cover if you want.

Getting The Cheapest House Insurance

There are a number of circumstances in which many home insurance companies will give you a discounted rate on your cover. These can include:

You have made no claims previously.
You, or someone living in your house, are over 50.
You, or someone living in your house, are home during the day.
You have an alarm in your house.
You take out car insurance with the same insurance company.
You have a smoke detector in your house.
You live in a neighbourhood watch area.
Your house is more than 10 years old.
Compare House Insurance Companies

Even if you already have house insurance, it pays to shop around every time it comes up for renewal. Your insurance needs can change over time, so do an annual review, and increase (or decrease) your amount of cover as necessary.

Also, new competitors enter the market regularly, and existing insurance companies can change their pricing structure. So, even if another company was more costly the last time you checked, this might not still be the case.