Reducing the cost of your home insurance can be risky business

Use an insurance broker or go direct?
April 9, 2015

It is vital to insure your home, due to its value, and as we cannot plan for the unexpected, home insurance is a must.

The ‘rebuild cost’ of a home can typically range from €80,000 to €500,000+, depending on our financial positions. Along with buildings cover, it is important to have cover in place for contents. The ‘sum insured’ is the maximum amount the policy will pay out if the buildings or contents of your home are completely destroyed, so it is important to have this figure right.

There are many insurance companies offering home insurance and the cover on each policy varies. Whilst it is important to have the correct cover in place, it is also important in these recessionary times that we don’t overpay.

How can we reduce what we pay while still having the correct cover in place?

 1. Don’t cut corners. Make sure all the information you declare on the proposal form is correct. Don’t be tempted to hide details of previous claims etc as this invalidates your insurance immediately.
2. Read the policy and know what you are covered for but more importantly, know the policy conditions and exclusions.
3. Get more than one quote and compare the cover options/terms etc.
4. Cut out additional extras. If you don’t need any added insurance extras, you could reduce your premium by choosing a basic policy. Accidental damage cover, for example, can increase your premiums by as much as 25%. Also, is your old laptop still on the policy? Can it be deleted? Etc
5. Do you have an alarm fitted?. This will get you a discount. Although some insurance companies only apply this discount when the alarm is fitted by an NSAI approved installer. Remember, if the give you a discount, they will also apply a warranty that the alarm must be turned on at certain times etc
6. Fit and maintain 2 working smoke alarms in your property. This may get you a discount or it may just be required as a minimum by your insurer.
7. Increase the amount of excess you are willing to pay towards a claim but remember should the worst happen you will have to be able to carry this cost.
8. Is there neighbourhood watch or community alert in your area? This might get you a discount.
9. No claims bonus. Some companies offer a big discount for a good no claims history, you can achieve this by reducing the risk of claims, eg extra security, smoke alarms, insulate pipes etc, and you may also consider paying the bill yourself – where it is a small claim.
10.Consider a reduction in the sums insured. To get an accurate figure you may need to consult with your architect or other professional. For contents, this normally means taking a walk around the house and doing a quick tot of all the contents and what it would cost to replace them (including clothes etc).

If you would like a quote for home insurance, call Martin Insurance on 049 433 2944, email us or complete our online enquiry form.

Martin Insurance provide you with excellent, personal service that you won’t get from other large insurers. We don’t do call centres, we do service instead.

This is only a summary of cover. Every insurance company may change the terms, conditions and benefits of their insurance policies on a weekly or monthly basis. Please refer to your policy document and schedule for full details of cover.

Daria Sadkina
Daria Sadkina
Daria has over 15 years of experience in the insurance market, including personal & commercial lines, claims handling, training & development, and legal compliance. She is an Internationally Certified Compliance Professional and regularly assists the Insurance Institute of Ireland on educational projects.

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