Home Insurance is not compulsory – but if you have a mortgage your lender will insist on buildings insurance being in place.
Even if you don’t have a mortgage , it is wise to have home insurance so you can claim to repair or replace buildings, contents and valuables if there is a burglary, fire or other damage.
The Competition and Consumer Protection Commission carried out a recent house insurance price comparison – and the results show once again that some insurers are much cheaper than others.
The small comparison involved getting quotes from 8 different insurers on 8 different properties.
Axa and FBD came out well in the comparison – with FBD giving the lowest quote in 4 cases and Axa giving the lowest price in 3 of the sample properties.
Overall – AIG came out as the most expensive in every one of the sample quotes.
The differences in insurance quotes were substantial in some cases. The worst case was a difference of €421 – AIG quoted €700 a year and Axa quoted €279 for the same property. ( Buildings and contents insurance on a -3 bed bungalow in Co. Cork with rebuilding cost of €200,000 and contents worth €50,000.)
Higher Insurance because of Previous Claims :
Quotes were requested for a property where there had been a previous claim for €8,000 following damage caused by a defective water tank in 2012.
Five of the eight insurers would not even quote on this example.
The 3 insurers that dis provide a quote were:- Axa, FBD and Liberty.
The FBD price was the same, regardless of the previous claim. The Axa price was €60 higher because of the prior claim and Liberty Insurance quoted €305 more where there had been a previous claim .
Liable to Flooding:
None of the insurance companies would provide a quote for one property that was liable to flooding and where a flood damage claim was made in 2010.
Tenants will only need to insure the contents of their home – and one of the comparisons was for contents only insurance on goods valued at €8000. The best quote for this was from FBD at €72 a year (€10,000 minimum value applied). Other similar prices were €80 from Zurich and €86 from Allianz … all with a €250 excess. The worst deal was quoted by Axa at €158 with a €350 excess
The insurers involved in the price comparison were: AIG, Aviva, Axa, Allianz, FBD, Liberty , RSA and Zurich Ref: http://www.consumerhelp.ie
The comparison mainly used direct insurers – but sometimes a broker might be able to get a better deal for you. The AA are insurance brokers amongst other things.