Home Insurance

What is Home Insurance and how does it work?

Home Insurance: your safety net for unforeseeable events

  • By Paddy Compare
  • 30 June 2023

Home insurance is a financial tool that protects your home and belongings from risks such as fire, flood, water damage, or theft. It also financially protects members of your household in case they suffer an injury.

With a range of different policy plans available, it is crucial to understand the terms of each policy plan available out there.

With Paddy Compare, you can make an informed choice and pick the best home insurance coverage in Ireland, for you!

In this article

What is home insurance?

In Ireland, home insurance is a type of policy that provides financial protection for a person's home, personal belongings, furniture, and other valuables.

Home insurance is usually obtained by homeowners:

  • As a requirement from their mortgage lender.
  • To safeguard their investment and protect themselves financially.

As a homeowner in Ireland, it is very important for you to get a home insurance policy, as it ensures that your property is protected from unforeseen damages at all times.

What does home insurance cover?

Home insurance policies will pay out funds to repair or rebuild:

  • The physical structure of your home, including the walls, roof, floors, and built-in fixtures if it is damaged (and the type of damage is covered in the plan).
  • Property that is damaged in events such as fire, lightning, windstorms, hail, explosions, vandalism, and theft.

The policies will also provide funds to replace or repair your belongings such as:

  • Furniture
  • Appliances
  • Electronics
  • Clothing
  • Valuables

Some policies may also include liability coverage. This helps protect you financially if someone sues you for damages upon suffering an injury on your property.

What does home insurance not cover?

There are certain situations in which your home insurance policy plan may not financially cover you. Most home insurance policies do not cover:

  • The excess or the amount that you will have to pay towards any claim before your insurer pays the balance.
  • Storm or flood damage to fences, gates, and hedges.
  • Theft where the robbers did not break into the home.
  • Damage caused by a resident of the home.
  • Damage caused due to wear and tear.
  • Faulty construction work or building materials.

When it comes to protecting your home, having home insurance coverage is essential. It provides a safety net for any unexpected damages or losses that may occur.

Who should get home insurance?

Getting home insurance is important if you:

  • Own a house since this helps protect your investment in the property by covering damages.
  • Have a mortgage on your home. Lenders often require you to take out insurance to ensure that their investment is protected.
  • Own a condo and want to protect your personal belongings and get liability coverage.
  • Are a renter, since renter's insurance covers your personal belongings and provides liability coverage in case someone is injured in your rental unit.
  • Own a holiday home and wish to protect your investment and everything in it.

Before buying home insurance, it's important to understand who needs home insurance and what purpose this financial tool serves you.

What type of home insurance do I need?

It's important to evaluate your needs, review policy options, and select the coverage that suits your requirements and budget. There are various types of home insurance policy plans available, such as:

  1. Home Contents Insurance
  2. Holiday Home Insurance
  3. Unoccupied Home Insurance
  4. Building Insurance
  5. Buildings and Contents Insurance

How much does home insurance cost?

In Ireland, home insurance premiums are typically calculated based on the rebuild cost of your home, rather than its market value. The rebuild cost is the amount it would take to completely reconstruct your home if it were destroyed, including labour and materials.

Other factors that can influence the cost of home insurance include:

  • The area in which your home is situated. If you live in an area prone to natural disasters or high crime rates, it may result in higher premiums.
  • The level of coverage you choose. Opting for higher coverage limits or additional add-ons will likely increase the premium.
  • Installing security systems, smoke detectors, burglar alarms, and other safety features in your home can sometimes lead to premium discounts.
  • If you have made previous insurance claims, especially for significant losses, it could lead to higher premiums.

Additionally, it's worth checking out a few tips to get cheaper home insurance in Ireland to save on your policies.

Planning on buying home insurance?

Home insurance is typically recommended for anyone who owns a home or is in the process of purchasing a home. It's recommended to compare quotes and choose a policy that suits your needs and budget.

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