What is Covered By Home Insurance

Buying a home is one of the biggest investments you make in life, both financially and emotionally, which makes it crucial to protect at all costs. In Ireland, a home insurance policy provides exactly this.

It offers peace of mind that your property and belongings are protected should the worst happen.

What is home insurance?

Home insurance in Ireland is a financial policy that protects your house, tailored to your individual needs.

There are two main categories of home insurance policy - building insurance, which covers the structure of your home, and contents insurance, which covers your personal belongings.

Types of home insurance policies

• Building Insurance - This covers the physical structure of your house, such as the roof, walls, and floors. Underground pipe damage or any leaks are also accounted for in this insurance.
  Legal liability in case of injury to anyone or accidental property damage also comes under this insurance.

• Contents Insurance - This covers your belongings in a property, such as appliances, furniture, or any other valuable items. Funds are provided for the replacement or repair of these items based on their value.

Building and content insurance can also be combined to form one package.

Other common home insurance policies

In addition to the two main kinds of home insurance policies, there are others designed to suit more specific needs, these include:

• Homeowners insurance: This type of policy covers your second home and protects you from the various risks associated.
• Renters home insurance: Protects your personal property in rented accommodation from unexpected circumstances such as theft or fire.
• Landlord's home insurance: Includes property and liability protection, and is designed to provide cover for someone who rents out a home they own.
• Unoccupied home insurance: Designed to provide cover for homes that are vacant for more prolonged periods.
• Holiday home insurance: This policy provides coverage for your vacation home and protects it from any unexpected events.

Gain a better understanding of the above mentioned policies to make an informed decision about your coverage needs.

What does home insurance cover?

Home Insurance covers expenses in the following cases:

• The physical structure of your home including the roof, walls, and floors gets damaged. Exterior features, repainting the house, and repairing cracked walls due to a major foundation problem are also encompassed in the physical structure.
• Any loss of belongings or damage falls under the purview of home insurance. These belongings can include clothes, furniture, appliances, or personal assets. Funds for their repair or replacement are provided in case of theft or breakage.
• Damage caused by natural disasters such as floods, thunderstorms, or earthquakes.
• Re-stocking of food if your fridge breaks down.
• Replacing door locks if house keys are stolen.
• Loss in case of a robbery.
• Any legal fees including liability coverage, if someone suffers an injury on your property, including expenses to remove squatters.
• Pipe leaks, broken boilers, and any underground cabling issues.

What does home insurance not cover?

Certain damages are excluded from most home insurance policies. These include:

• Damage caused to any belonging by a resident of the home.
• Gradual wear and tear of the house due to neglecting maintenance.
• Theft where the robbers did not break into the home. For example, climbing in through an unlocked window.
• Any damage or theft in an unoccupied house, if left vacant for 30-60 days.
• The first amount of any claim or the excess.
• Damage caused during renovation or by any contractor. Contractors usually have their insurance to cover such damage.

Additional covers available

Various additional covers can be added to your standard home insurance policy to protect against more complex incidents. These include:

• Home emergency cover: This cover protects you in case you have to immediately move out of your house due to a broken boiler or a burst pipe. Repair costs are taken care of and the expense of accommodation during repairs is covered.
• 'Away from home' cover: Possessions are insured under this cover even when damage to them occurs when you're away from home.
• Downloads insurance: This protects against any downloadable material that could've been taken from a stolen laptop or tablet.
• Accidental damage cover: Any mishaps ranging from drink spillages on a carpet to DIY repair failures are covered under this add-on.
• Legal cover: Expenses to hire a lawyer to settle any boundary disputes or any family legal expenses are covered in this.

Cost of home insurance and how to get the best deal

In Ireland, the home insurance premium is calculated on the rebuild cost of the home, rather than its market value. The location of your home, among other factors, plays a role when calculating premiums, as areas that have a higher crime rate or are more prone to natural disasters get insured at higher premiums.

The average cost of home insurance in Ireland is €430 per annum.

Factors such as location or the rebuild cost of homes are only sometimes controllable. However, there are specific steps you can take to get cost-effective covers.

These factors focus on finding the best options as well as reducing the risk of damage:

• Browse and compare quotes to find the most suitable option for you.
• The level of coverage you choose affects your premium. Opting for more add-ons or expanding coverage will contribute to higher premiums. To reduce the cost, pick a level of coverage that suits your needs.
• Installing security systems such as security cameras, burglar alarms, and smoke detectors can reduce the possibility of theft or damage. Such protection usually results in lower premiums.
• Regular maintenance of your property and timely action in case of any faults would also ensure lower premiums.

In addition to this, consider checking out some valuable tips to get cheaper home insurance in Ireland without compromising on your coverage.

It's worth knowing about the factors that affect your home insurance premiums in general to make the right decision.