Home Insurance Guide
Check your current insurance policy against the list below to see that you are fully insured.
a. The Sum Insured
b. Contents
c. Extended Cover for Personal Possessions
d. Making a Claim
e. Useful Numbers
f. What is insurance?
g. Where can I get insurance?
h. What type of insurance do I need for my property?
i. What is an "All Risk Policy"?
j. What if my risk changes and I need to adjust or change the level of my insurance coverage?
k. What is Mortgage Protection?
l. What if I live in rented accomodation?
a. The Sum Insured
· If you have made improvements (from upgrading your kitchen to adding an extension) you will need to increase you cover.
· Take into account that if you have to rebuild your home, or part of it, that building costs have increased since you first took out your policy. Architect s fees, local authority regulations and moving debris are just some of the extras you may not have accounted for. These extras can increase the cost of rebuilding your home by as much as 15%.
· If you have not insured your property for the correct rebuilding cost, you may not receive the full amount of any claim. Keep in mind it is not the market value of your property that is relevant, but the cost of rebuilding it that you need to know, to ensure you have adequate cover.
Return to topb. Contents
Your contents policy covers any of your home contents which you can move, (e.g. household goods, furniture and personal belongings), however, personal possessions that will be carried outside (e.g. your engagement ring or video camera) need their own insurance and you need to cover these separately (see below).
c. Extended cover for Personal Possessions
It s always important to check your policy to see that you are covered for personal possessions both inside and outside the home. Once they leave the house, they are no longer covered on your policy unless you have specifically bought extra cover for them.
d. Making a Claim
· If you need to make a claim, check first that your policy covers your claim.
· If your property has been stolen or deliberately damaged, or you have lost a valuable item, tell the Gardai immediately.
· Keep the damaged items if possible as your insurer may need to inspect them.
· Get estimates as soon as possible for repairing the damage.
· Carry out any temporary repairs immediately if they are necessary to prevent more damage. You must let your insurer inspect the damage before you start any permanent repairs.
e. Useful Numbers
· Bord Gais (Leaks only) 1850 205050
· ESB (Supply Failure) 1850 372999
· Police, Fire, Emergency 999 or 112
The information provided in this guide does not constitute tax, legal, investment or any other advice. Any figures quoted are correct as at 01st July 2003 and are subject to change. * Terms and Conditions Apply AIB Insurance Services Ltd is a Multi Agency Intermediary regulated by the Central Bank of Ireland and is an independent subsidiary company within AIB Group. Allied Irish Banks, p.l.c. is regulated by the Irish Financial Services Regulatory Authority.
f. What is Insurance?
Insurance is the business of providing financial protection for property, life or health, for example, against specified contingencies such as death, loss or damage.
The insured pays the insurer regular 'premiums' in return for a policy guaranteeing such protections. An insurance policy will cover against a stated list of risks including, for example, fire, subsidence, theft, flood and storm.
Return to topg. Where can I get insurance?
Your mortgage provider may offer you insurance but you do not have to take it. You can shop around and visit other insurance dealers and brokers, much as you would if you were insuring your car.
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Return to toph. What types of insurance do I need for my property?
There are two main types insurance policy associated with purchasing a house.
Buildings Insurance
This is a compulsory condition of any mortgage loan. You can generally purchase your buildings insurance from your mortgage lender or you can shop around with other insurance providers for the best deal.
Some special mortgage packages already include insurance.
Buildings insurance will cover the structure of the home together with its fixtures and fittings. The 'sum insured' is the maximum amount the insurance company will pay you.
It must be the full re-building cost of your property.
It is fully the responsibility of the property owner to get the sum insured correct. If you significantly under-insure your property it may mean that your claim could be reduced or possibly rejected altogether.
Contents Insurance
This type of insurance will cover the contents of the property against risks, which will be set out clearly in your policy booklet. It can also be extended to cover items you make use of outside the home, such as a bicycles, binoculars or musical equipment.
Contents policies also have other sections such as legal expenses, liability insurance and freezer contents. You may be required to pay an extra premium to avail of this level of coverage.
There are a number of contents policies available. The lowest level of coverage is with an 'indemnity' policy.
This will account for the amount of wear and tear, when paying your claim. If, for example, your eight-year-old carpets get water damaged, it will take into consideration the age of the carpet when determining a replacement value.
A higher level of coverage is given through a 'new for old' policy, which will pay out the full cost for brand new carpets to replace the old, damaged ones.
Other policies are available such as a policy that has a premium calculated on the number of bedrooms in the property. There is no need to work out the total value of your possessions.
What might contents insurance typically exclude?
Some items commonly excluded from contents insurance include:
- Fences
- Sheds and garden tools
- Money, credit cards etc.
- Items over a certain value (often around EUR1,900 and known as single-item limit)
- Personal belongings of individuals, such as tenants, not specifically covered in the policy.
If you are any in any doubt as to whether you’re sufficiently covered, call your insurance company and check it out.
Return to topi. What is an 'All Risk' policy?
An 'All Risk' policy covers you for any loss or damage unless specified by the policy as an excluded item/event.
When purchasing the policy you can decide how many or few of your possessions will be covered. It will have extensive geographical coverage for your possessions so if you take, for example, a camera on holiday, it will be covered by the policy unless specifically stated as excluded.
An 'All Risk' policy will usually cover old for new and accidental damage as well.
'All Risk' policies are generally more expensive than those with lots of exclusions.
Return to topj. What if my risk changes and I need to adjust or change the level of my insurance coverage?
You quite simply inform your insurance company of a 'material change' in your or your home’s circumstances and they will amend your policy accordingly. This process is known as a 'mid-term adjustment'.
It is important to make your insurer aware of any change in your circumstances because if you don’t you may find that in the event of needing to make a claim, you are not covered. Equally, you may enjoy discounted premiums if you decrease the risk of losing your contents by increasing security at your property.
Return to topk. What is Mortgage Protection?
If you are unable to work due to an accident, illness or unemployment, Mortgage Protection is a policy you can take out, which is designed to take care of the payments on your mortgage while you are unable to earn.
You can usually obtain mortgage protection through your mortgage provider or you may wish to us another insurer.
Return to topl. What if I live in rented accommodation?
You should check with the property owner if your personal items are covered by their home contents policy. If your personal items are not covered by the property owner’s policy you should arrange your own personalinsurance through an insurance company or broker.