Susan Robertson Consumer Information 11 April 2008

Home Insurance

What does home insurance cover? House insurance covers the following: Buildings insurance – damage to buildings; Contents insurance - damage to contents; All-risks cover – loss or damage to valuables; Liability insurance – injury to others in or around your home, damage to other people’s property.

Buildings insurance This covers: The main structure of your home and domestic outbuildings. Permanent fixtures to your home, for example, fitted kitchen, bathroom, floors, etc. i.e. whatever you can’t take with you when you move.

How much should I insure the buildings for? You insure your home for the amount of money it would cost to rebuild it, i.e. the reinstatement value. This is not the same as the market value of the property. A rough estimate of the reinstatement value is available on the Society of Chartered Surveyors. “Guide to House Rebuilding Insurance”. Most insurers will have a minimum reinstatement value that they will insure for, e.g. €100,000. “Subject to average” – if you are underinsured your claim will be reduced in proportion to the underinsurance. If you insure for too much, you will not receive an increased benefit.

What is usually covered by buildings insurance? Damage caused by: Fire, explosion, lightning or earthquake; Flooding, storm and subsidence, with some restrictions; Riot, vandalism, or other violent acts; Burglary or attempted burglary that results in property damage; Water or oil escaping from a fixed appliance such as a water tank; Vehicles, animals, etc, damaging buildings, walls, fences, etc; Falling trees and branches.

What is usually not included in buildings insurance? Damage caused by: Storms affecting gates and fences; Flooding or subsidence if your home is in an area where this is likely to happen; Acts of terrorism; Wear and tear in the structure or the inside of the property; Any claim that is less than the excess.

What is the excess? The excess is the amount of the claim that you will have to pay yourself. Normally between €100- €500.

What is indexation? Many insurers automatically increase the amount insured each year on renewal. This makes sure that the insured amount keeps up with inflation. You should still keep an eye on the insured amount to make sure that you are not over or under insured.

Contents insurance This can be a separate policy to your buildings insurance or a combined policy with your buildings insurance. This includes items that you will take with you when you leave the house, e.g. furniture, etc. Also fitted carpets.

How much do I insure my contents for? You should insure your contents for the figure it would cost to replace them. Use our contents checklist in our Home Insurance made easy guide. There may be a minimum amount you can insure your contents for.

What is usually covered? Loss or damage to items on a “new for old” basis. Accidental damage to household equipment – may be a higher premium. Loss or damage to items you temporarily remove from the house – does not include glass or fragile items. Food that has spoiled in the freezer or fridge due to break down or power cut. Cash stolen from your home, up to a limit.

What is normally not covered? Any loss or damage that happens when you have left your house empty more than a set no. of days,e.g. 30 days. Money or valuables stolen from your home when not secured. Deeds, bonds, bills of exchange, promissory notes, cheques, stamps, any documents, manuscripts, medals and coins. Motor vehicles and accessories. Damage caused by wear and tear.

All risks cover This covers specific items listed by you. These are normally valuable items, e.g. jewellery, golf clubs, etc. Or you can take out cover for unspecified items. There may be an upper limit on the value you can insure an item for. Items taken abroad will be covered under all risks up to a certain time limit.

Liability Insurance Included in most policies. Covers costs, fees and expenses that you are legally liable for if a 3 rd party can prove that you were at fault, e.g. someone on your property gets ill, has an accident, is injured or dies. Plus accidental damage you cause to someone else’s belongings. Does not cover accidents that happen to members of your family and damage that you cause to your property.

What can affect my premium? The amount you insure your house for. The amount of contents insurance. Where your property is located. The type of cover you want. Any discounts. (up to a max. total)

My home is a 4 bed detached house in County Clare. The rebuilding cost is €245,000 and the contents are worth €55,000 - online survey Age of property – 20 years Is the area liable to flooding? -- No Is the area prone to subsidence?-- No Previous claim?—Yes in 2002 for burglary €6,000 Age of applicant– 40 years IS199 burglar alarm?-- Yes Neighbourhood watch?-- No Security locks on doors & windows?-- No All risks (unspecified items)?-- None

Quoted premiums as at 12/10/07 Broker/DirectQuotations Allianz Direct€301 AXA Broker€342 Eagle Star Direct€357 FBD Both€379 Hibernian Direct€320 Quinn Direct Direct€237 Royal & Sun Alliance Both€264

How to make a claim Contact your insurer or broker as soon as possible. Give brief details of incident and request a claim form. You will be told what to do next. You can hire an assessor – works on your behalf and negotiates with the insurer to settle your claim. Different to a loss adjustor.

Why would a claim be refused? Common reasons include: Damage claimed for is not covered; You failed to meet all the policy conditions; Damage caused by wear and tear In some cases a burglary claim may be refused if the alarm was not on when there was no one home. The insurer or broker must advise you in writing that the claim has been refused and also why it was refused.

What is the average cause? This is when your claim is reduced because you were underinsured. For example, you insure your contents for €20,000 but they are worth €40,000. All the contents are destroyed and you make a claim – you will only receive €20,000. In the same case if 25% of your contents are destroyed and you claim for €10,000 you will only receive €5,000 – 50% of the claim because you were 50% underinsured.

To find out more, read: Our guide, “Home insurance made easy”; Our Home Insurance Cost Survey; Log onto Log onto Log onto

Consumer Contact Details Consumer Helpline Information Centre, 6/8 College Green, Dublin 2

Thank you Any questions?