When you open doors for strangers dressed as goblins or ghouls on Halloween, think of real thieves.
The noise, lights and people of the house keep the most avid thief away. Likewise, active supervised alarms, heavy-duty locks, and dogs all serve as well-known deterrents for people trying to steal your valuables.
But in addition to natural phenomena such as burst pipes, fires and broken windows, these things can still happen despite our best efforts. So having a good home insurance policy is not only wise, but a must if you have a mortgage.
As a necessary evil, most of us try to get away with the lowest premium possible, sometimes renewing without looking into the insurance itself, and resent that we don’t need it.
But with inflation rampant in the real estate market, you may not have adequate insurance and you’re paying for coverage you don’t need or won’t pay anyway.
Knowing your policy is important. That’s the theme for this week. Home insurance can cost between €80 and €250 per month, so it’s worth making sure your insurance is working properly.
Policy structure
A policy has two basic elements: building and content.
The first covers damage to the brick and mortar inside and out and is based on the cost of the repair. Insurance for restructuring costs is cheaper, and that’s the only thing that pays out in the event of a claim.
Most insurance companies have calculators on their websites, as does the Society of Chartered Surveyors (www.scsi.ie).
For example, a 4-bed semi-detached house in South Dublin (115 sqm) will be rebuilt at €2,591 per sqm, or just under €300,000. I could probably sell it for double that, but I don’t want to insure it for €600,000. You can’t get it by billing.
Conversely, do not lower it too much. A 2-bed terraced townhouse costs the same per square meter as a 4-bed detached bungalow because of the structural problems that repair it.
Pay special attention to small portable valuables that thieves like, such as bicycles, laptops, phones, jewelry, and cash.
When it comes to content insurance, don’t just take a percentage of your build insurance. It’s much better to actually calculate replacement costs.
Pay special attention to small portable valuables that thieves like, such as bicycles, laptops, phones, jewelry, and cash. Most policies have a “per item” limit of around €1,000. Anything in excess of this must be listed and insured separately under All Risks for which additional premiums are payable.
Deirdre McCarthy of Insuremyhouse.ie said: This includes all personal items such as clothes and jewelry, furniture such as beds and sofas, electrical appliances such as televisions and entertainment equipment, and white goods such as washing machines and refrigerators.
“We recommend that you do a quick room-by-room assessment and calculate the cost of replacing the contents of each room.”
Accidental damage is an additional charge. Covers accidents you cause at home, such as knocking over a can of paint or forgetting to unplug the faucet.
insurance coverage
Not insuring properly has two chain reactions. The first is obviously not fully covered. This could become more common due to construction inflation from the roof.
Concrete, wood, steel and contractors are all expensive at this time.
A second effect that is not widely understood is that most policies have a billing average clause.
This means that if you don’t have 20% building insurance for example, all your claims will be reduced by this amount.
So if your carpet costs €1,000, you’ll only get paid €800.
hidden extras
Home insurance has many additional features that you may not be aware of. It’s worth checking if those are yours. They include:
- Domestic buildings and their contents, including garages and greenhouses. For example, if a tree falls in a storm and breaks the glass, you are covered.
- Temporary accommodation expenses when leaving due to damage. This is very important in the event of a catastrophic event like a house fire. But usually you have to find yourself a place to stay.
- For example, if a neighbor’s child fell off your wall and the parents sued, legal liability to others.
- Fire brigade bills for chimney fires and other accidents. Otherwise, it can cost you hundreds of euros.
- Jury Duty. Benefits of between €25 and €50 per day are normally covered and no claim will affect his bonus.
- With so many people working from home these days, home office equipment is very important. However, if you run your business from home, you need another coverage.
- Christmas – Most policies automatically add 10% to the cover of content during the period.
certify your home for billing
Insurance that proves your home is more than just having the right insurance coverage. It’s also important to prepare for future claims.
- Photograph all valuables in good light, and for jewelry while wearing it, and keep it on file. This is useful for like-for-like replacement claims, which insurance companies prefer over handing out checks.
- Professionally assess all risk section items. Update every few years, especially works of art. Always keep your receipt for insured goods. This makes the billing process much faster.
- In the event of a claim for damages such as flooding or broken windows, it is your responsibility as a homeowner to minimize any further damages. So moving furniture to his second floor or boarding up the glass is a smart move.
- Do not call buddies to repair damage. Most insurance companies have contracts with certain builders, glaziers, and other professionals who may not be able to refund you. Call the Emergency Billing Line instead. We are manned 24/7 to arrange damage control and repairs.
- Always promptly report any theft or break-in to An Garda Síochána. Failure to do so may invalidate your claim.
- If you have an item that is separately insured (such as a cell phone), you cannot reclaim it from your home insurance policy.
- Tenants must purchase their own content insurance.
- Check your policy overage. Usually around €250, but you can lower your premium by having an excess, such as €1,000.
