Home insurance: Review before you renew
March 1, 2024
Home insurance rates have increased due to rising costs of living. The Society of Chartered Surveyors Ireland (SCSI) recently flagged a 12% rise in building costs in the last year. This may be having an impact on the cost of your insurance premium.
Whilst many of us stick with the same insurer from year to year, it can be worth changing things up. We’ve put together our key tips to help unlock your path to a better home insurance deal.
Shop around
If that quote you’ve received from your insurer is more than expected, you might be able to get better value. You can either use comparison websites or directly contact each of the insurance provider yourself to get their best quote. It’s worth shopping around as you may get a better deal.
Look for discounts
Insurance companies offer a range of discounts to consumers. These depend on various factors such as your age, security measures in your house, smoke alarms etc. A simple step like installing a house alarm can reduce your premium.
You may be entitled to a discount if you have not made a claim in the last few years. Ask your insurance provider about this and other discounts to see what you qualify for.
Get more information on discounts.
Check your excess
Always find out how much your excess is when getting a quote. This is the amount of money you’ll have to pay towards a successful claim before your insurer covers the balance.
For example, your excess is €400 and you claim for €1,000. You will have to pay out the first €400, your insurer covers the remaining €600. Excess varies between insurers, and you may be able to get a lower renewal premium by choosing a higher excess.
Work out rebuilding costs
When taking out home insurance, it’s vital to figure out your rebuilding cost. This is how much it would cost to rebuild your home if it got destroyed, for example by fire. Be careful not to overvalue it as you could end up paying too much for your home insurance!
If on the other hand you undervalue the rebuilding cost, the insurance policy might not pay out enough to rebuild your home. It’s important you insure your home for the full amount it would cost to replace it and not its market value. The SCSI provide a free House Rebuild Calculator. You should use this to help you estimate your rebuilding cost.
You will also need to accurately estimate the current value of your household belongings. Replacing them could cost more than you originally paid, in case of theft, damage or destruction.
Top Tip
Make sure you do not underinsure your home. If you insure your home and contents for too little, you may not receive the full amount necessary to rebuild, repair or replace it in the event of partial or complete damage. You are responsible for setting the sum insured.
Our Money hub has more information on home insurance.
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