Home insurance

What is home insurance?

Home insurance protects your home and belongings against risks like fire, water damage and theft. This page explains the main types of cover available in Ireland, what’s included and excluded, how to avoid underinsurance and what to check when choosing a policy, from rebuild costs and contents limits to excess amounts and available discounts.

Why do you need home insurance?

You are not legally obliged to take out home insurance, but if you have a mortgage, your lender may require buildings insurance to cover rebuild costs. Even if you own your home outright, home insurance protects you financially in the event of burglary, fire or other damage.

What types of cover are available?

Most home insurance policies include:

• Buildings insurance: Covers damage to the structure of your home
• Contents insurance: Covers loss or damage to the contents of your home
• All-risks cover: Covers loss or damage to valuables, even outside your home
• Liability insurance: Covers injury to other people in or around your home

How do you choose a policy?

There are many home insurance policies to choose from. There are also considerable differences between these policies in terms of cost and the level of cover they offer.

You can:

• Contact insurance companies directly for quotes
• Use comparison sites to compare quotes (not all insurers may be included)
• Use an insurance broker for tailored advice

What does building insurance cover?

Buildings insurance covers anything you cannot take away with you if you move house. It usually includes:

• The structure of your home such as the roof, walls, windows, ceilings and doors
• Permanent fittings such as tiled or hardwood floors, bathroom fittings and fitted kitchens.
• Garages or outbuildings such as a garden shed or a farm building
• Garden walls, gates and fences

If your home is destroyed or you can’t live in it, your buildings insurance will usually pay for the cost of having to move out or rent another home.

Damage caused by the following is usually covered under a buildings policy:

• Fire, explosion, lightning, or earthquake
• Flooding, storm and subsidence (the ground moving underneath the building), with some restrictions
• Riot, vandalism or other violent acts
• Burglary or attempted burglary that results in damage to your home or its fixtures and fittings
• Water or oil escaping from a fixed appliance in your home such as burst pipes or a burst water tank
• Vehicles or animals damaging buildings, walls, gates or fences
• Falling trees and branches

Damaged caused by the following is not usually covered under a buildings policy:

• Storms affecting gates and fences
• Flooding or subsidence if your home is in an area where this is likely to happen
• Acts of terrorism
• Wear and tear in the structure or the inside of your home, for example roof damage or water damage caused by a leaking shower
• Someone working in your home – you can only claim for this damage if the person who has caused it has their own public liability insurance
• You are not covered for any claim that is less than the excess on your policy

What affects the cost of home insurance?

The ‘premium’ is the amount you pay for your insurance cover. Your home insurance premium depends on three main factors:

• The amount insured for buildings and contents
• The location of your home. City homeowners usually pay more than rural homeowners because there are more burglary claims in urban areas. However, if you have security features, you may get a discount.
• The type of cover and any discounts you qualify for

When you buy insurance, it is important to remember that the policy with the lowest premium is not always the best. It is essential to read the policy details to find out what’s covered before you sign up.

If you have other insurance products such as gadget insurance, you may find that the items are also covered by your home insurance policy. Make sure you are not doubling up on insurance cover with different policies.

What discounts can you get?

You may get a discount if:

• You have made no claims in the past three years
• The applicant or a resident is over 40 or 50
• Residents are non-smokers
• Someone is usually home during the day
• The house has an alarm (extra discount if monitored)
• You have a smoke detector
• Security locks are fitted
• You have another policy with the same company
• Your house is in a neighbourhood watch area

Use the home insurance checklist to compare costs and benefits.

Restrictions and exclusions

Standard exclusions are in every policy but specific exclusions vary. Always check before you sign up.

What is excess?

The excess is the amount you pay towards any claim before your insurer pays the balance. Claims below the excess cannot be made. Excess is usually €100 to €500 for standard claims, higher for subsidence (the ground moving underneath the building). You may get a discount for agreeing to a higher excess.

How do you avoid being underinsured?

Underinsurance means your home or its contents are insured for less than the cost of rebuilding, repairing or replacing them. 

If you need to make a claim, you may not be fully covered for your losses. The main reason for underinsurance is rising rebuilding costs, mainly due to higher prices for building materials.

What steps can you take to avoid being underinsured?

Review your cover regularly

• Check your buildings and contents cover every year, especially when renewing your insurance.
• Update your cover if you’ve extended or renovated your home (e.g. attic conversion, home office).

Watch for rising costs

• During periods of high inflation or increased living costs, check your rebuild costs against your current policy.

Talk to your insurer

• Ask your provider about the right level of cover for your needs.
• Many insurers use indexation – they automatically increase your cover each year to keep up with inflation and help you avoid under-insurance.

Estimate your rebuild cost

• Use the Society of Chartered Surveyors Ireland’s House Rebuild Calculator or a property valuation service to estimate your rebuild cost.

How do you make a claim?

If you find yourself in a position where you need to make a claim on your insurance, you can find a step-by-step guide here to help you.

What does contents insurance cover?

This covers the moveable objects in your home – including some flooring. Contents insurance can be separate from buildings insurance or combined in a single policy. If you don’t own your home, for example, if you’re renting, you should still consider insuring your contents.

Usually covered under a contents policy:

• Loss of or damage to items on a "new-for-old" basis (up to certain limits) "New-for-old" means replace with a brand-new equivalent.
• Accidental damage to household equipment, for example, a TV or stereo – you may have to pay a higher premium for this benefit
• Loss of, or damage to, items you temporarily remove from the house, for example, when you move house; usually this does not include glass and fragile objects
• Food that has spoiled in a fridge or freezer because of a power failure or the fridge or freezer breaking down
• Cash stolen from your home, up to a certain limit (the policy may also cover money spent on debit or credit cards stolen from your home)

Not usually covered under a content policy:

• Any loss or damage that happens when you have left your home empty for a set time, usually more than 30 days
• Money or valuables stolen from your home if your home was not properly secured
• Deeds, bonds, bills of exchange, promissory notes (contract of money), cheques, stamps, documents of any kind, manuscripts, medals and coins
• Motor vehicles and accessories
• Damage caused by wear and tear
• Personal belongings that are usually carried outside the home unless you have specified them
• You are not covered for any claim that is less than the excess on your policy

How do you insure your contents correctly?

• Insure your contents for the full amount it would cost to replace everything if it was stolen or damaged.
• Take time to calculate these costs carefully – this helps you avoid being under-insured.
• Many policies include an ‘average clause’. If you only insure 75% of your contents’ value, your insurer will only pay 75% of any claim.
• Use our home insurance contents checklist to help estimate the value of your belongings.

What should you include in your calculation?

• Check if your policy covers contents in your garage or shed and include them if it does
• Don’t forget to include carpets and curtains
• Cover for valuable items
• There’s usually a limit on how much you can claim for any single item
• List valuable items (like jewellery or antiques) separately on your policy if needed

What is all-risks cover?

Optional extra for valuables inside and outside the home (in the home's vicinity), including items taken abroad for up to 60 days. If you make a claim, your insurer may choose to either give you the cash value of the item or pay to repair or replace it.

• Unspecified items: You choose an overall value (e.g. €5,000) without listing each item. Most policies set a single item limit (e.g. €1,000), which is the maximum you can claim for any one item, regardless of its value.
• Specified items: If you own items worth more than the single item limit, list each item and its value to ensure full cover.

What is liability insurance?

Most home insurance policies include liability cover up to set limits. This covers costs, expenses or fees you’re legally liable to pay if, for example:

• A visitor or employee (like a tradesperson or childminder) is injured, becomes ill or dies in your home and you’re at fault.
• You’re liable for damages outside your home (in the home's vicinity), such as accidentally injuring someone with a golf ball or your dog causing injury or property damage.
• You accidentally damage someone else’s belongings through your actions or neglect.

What you need to know about renewing your home insurance?

When did you last review your home insurance? Most people renew every year – so shop around before renewing to make sure you’re getting the best deal. Your insurer must send you a renewal notice at least 20 days before your renewal date, including the following:

• The premiums paid for the policy in the previous five years, and
• A list of any claims, including third party claims, paid by the insurer to the consumer or to a third party/parties, in the previous five years

Did you know?

It is the responsibility of the insurance company to ask all relevant questions in the application process so they get all the information required. These questions must be in plain language and easy to understand. You are required to answer all questions fully and honestly.

When should you review your home insurance cover?

Review your cover if:

• You have new valuables
• You extended or renovated your home
• Rebuild costs have changed
• You moved home or bought a second home
• You let your policy lapse

How much money does it cost and how can you save money?

Read the home insurance costs and discounts section to make sure you get the best value.

Use the insurance shopping around checklist checklist when you’re looking for quotes. 

What should you do when switching provider?

1. Notify your current insurer in writing to cancel your policy
2. Cancel any direct debits with your bank
3. Complete paperwork for your new insurer

If you change your mind after switching, you have a 14-day cooling-off period from the start of the contract, during which time you can cancel the contract and get a full refund.