What is home insurance?
It’s an insurance policy that protects your property and your belongings inside.
Types of cover
There are three main types of home insurance:
- Contents insurance that covers the stuff inside your home
- Buildings insurance that covers the property you live in
- Combined insurance that covers both!
How does buildings insurance work?
Buildings cover protects the bricks and mortar of your property; it covers everything from your walls and windows to your roof and plumbing.
The amount you insure your property for isn’t usually the same as its sale value.
Instead, most insurers look at the cost of totally rebuilding your home from scratch and use this lower rebuild value instead.
How does contents insurance work?
Contents insurance covers the belongings in your home. As a general rule, if you can pick it up and take it out of your home, then it’s covered by contents cover.
You probably only need to worry about contents cover if you’re renting because it’s your landlord’s job to insure the property itself.
You’ll need to estimate the total value of all the belongings in your home before you get a quote - if you’re unsure, it’s better to go slightly higher than lower, as you don’t want to be left without enough cover.
How does a combined policy work?
It’s just a policy that includes both buildings and contents covered by the same insurer.
You’ll still need to choose your cover levels for both separately, but you might get a discount or a cheaper quote when you take out both together.
What does home insurance cover?
Well, that depends on the policy you pick, but it usually includes cover for:
- Fire damage
- Storm damage
- Lightning damage
- Theft of your belongings
Many policies also cover flood and subsidence, but this can sometimes cost extra.
For example, if you take out buildings insurance and there’s a fire, the policy will pay for repairs to your home that the fire has caused, but it wouldn’t pay to replace any of your belongings inside.
Any extras?
Yep, there are lots of add ons you can pay extra for to bolster your cover. Some of the main ones are:
- Accidental damage
- Bank card protection
- Emergency repairs
- Fire brigade cover
- Overnight accommodation
How to save money on cover
There’s no avoiding it, home insurance can be expensive, but there are ways to make it cheaper:
1. Shop online for the cheapest quotes
Always shop around and compare home insurance quotes to make sure you’re not paying any more than you need to.
The cheapest quotes are often available online because it’s the easiest and most affordable way for insurers as well.
2. Only pay for the cover you need
Many policies include optional extras that will make your cover more expensive.
It’s also tempting to overestimate the total amount of contents of buildings cover you need, but if you do this, you could be paying extra for cover you don’t need.
Always check if you’re being charged more for optional extras you don’t need and get quotes for the cover level that’s right for your home.
3. Choose the right excess
The excess is what you’ll have to pay towards the cost of a claim.
If you choose a lower excess, you may find that your policy is more expensive.
4. Pay upfront all in one go
If you can afford to pay for your policy in a single payment up front, then you may find that’s the cheapest option.
Some insurers charge extra to pay monthly by Direct Debit, so if you choose to spread the cost this way, you may end up paying more overall.
5. Check for extra discounts
Many insure offer extra discounts or money off their policies if you take steps to make your home more secure, such as installing burglar alarms or security cameras.
You could also get some extra money off if you get a quote from the same insurer you have another policy with, for example, your car or pet insurance provider.
Home insurance FAQs
Is flooding covered by home insurance?
Yes, you can usually get cover for flood damage, but you may have to pay extra for it.
How much should I insure my house for?
This should be the rebuild cost of your home, not the market value. This is the amount it would cost to rebuild your home from scratch.
Do I need special insurance to rent out a room in my home?
Yes, you need to let your insurer know if you decide to have a paid lodger rent a room in your home. They can often add extra cover for this, but you may have to pay a bit more as well.
Is home insurance compulsory in Ireland?
No, it’s not a legal requirement, but your mortgage lender will normally insist you have sufficient buildings insurance in place.
Does my home insurance cover working from home?
Not necessarily, because home insurance policies are designed for residential use only. However, many cover home office equipment under their contents cover so that you may get some protection. If you’re unsure, it’s best to speak to your insurer to check exactly what is included.