Home Insurance in Ireland: DOs & DON'Ts
There are lots of things that should be considered when you're looking for home insurance in Ireland. Many of
them are optional. However, to make sure you get the best possible value, there are some things you MUST always do,
and some things you should NEVER do. For example...
- DO get lots of different quotations from many different home insurance providers.
Even if your current provider seems to be giving you a good deal, remember that many companies offer very good
rates initially (and not just for the first year, but sometimes into the second, and even the third years).
However, once you have become an “established” customer, they'll start jacking up the rates, because they
believe you won't be bothered changing to another company. Also, even if YOU don't make any claims, your rates
could still rise anyway if, for example, your neighbours have made large claims for things such as burglary or
flood damage (i.e. the sort of problems that, because of your proximity to them, may be about to affect you
next).
- DO read all of your insurance policy details, not just the basic summary of your
insurance cover. It may not include high-value stuff that you can't afford not to have insured, such as an
expensive art collection, for example. If it doesn't, have your policy amended to include them, even if that
pushes up your cost. After all, there's no point getting a very low quotation, if the subsequent insurance
policy doesn't actually insure the value stuff you have in your home! Being fully aware of the exact nature of
your insurance cover will save you sleepless nights too: Imagine the stress of thinking you WEREN'T covered for
some costly home disaster, when, all the while, you were!
- DO make sure you have a reasonable idea of the value of your home contents and the
likely cost of rebuilding your house should it be destroyed. The last thing you want is to find out you haven't
insured it for enough AFTER disaster has struck. It'll be too late to do anything about it then. Also, an
equally unpleasant thought is finding out you have over insured your property, and have been paying far too
much – possibly for years – while receiving a lot less cover than you thought.
Those are the DOs. Here are some of the more important DON'Ts. Don't dismiss any of them: they have the
potential to save you a lot of money (or cost you a lot, if you ignore them). They are...
- DON'T give in to the temptation to insure your house and it's contents for a lower
amount, just so you can save some money at the time of payment. it can backfire on you in a big way: Most house
insurance policies contain an “average clause” which means, if you underestimate the value of you
house/contents, you insurance company may pay you much less than you claim for. For example, if your home
contents are worth €60,000, but you only insure them for €30,000, and them make a claim for that amount after
they are destroyed in fire, your provider may NOT pay you that amount. Instead, they will look at the total
value of your home contents (€60,000), consider that you are only half-insured (€30,000), and, therefore, only
pay for half the total damage...meaning you only get €15,000 instead!
- DON'T insure you home for it's market value, which is the amount you would receive
if you sold it. This value includes the cost of the land the house is built on. Even if the house it totally
destroyed by fire, that land will still be there. It can't be burnt up in a fire, so why insure it? Instead,
make sure you insure your home for the reinstatement value, which is the actual cost of rebuilding it,
excluding the cost of the land it's built on. If you have extended your house, make sure that is taken into
account when calculating the reinstatement value. To get a reliable estimate of rebuilding costs, you should
contact a reputable quantity surveyor.
- DON'T lie to your insurance company about any aspect of your policy, especially in
relation to any previous claims you have made. Insurance companies all have access to the same database of
information about previous insurance claims so, sooner-or-later, they will know if you have lied to them. If
that happens, they can (and will) cancel your cover and/or refuse to pay any claims from you, even if you have
paid your premiums in full. Any false or misleading information provided about any other aspect of your
insurance policy can have the same result. Instead, be honest with them, and answer their questions fully and
truthfully.
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