Purchasing your first home is an exciting milestone, beginning a new chapter in your life. As a first-time buyer, understanding the nuances of home insurance can help you protect your investment for years to come.
Here are the key things to remember when purchasing home insurance in Ireland.
Understand the rebuild cost
Your home’s rebuild cost is the amount of money needed to rebuild it from scratch. It is not the same as the property’s market value. The rebuild cost depends on several factors, including the price of labour and materials, the cost of the site clearance, outbuildings and boundary walls.
Obtain a property valuation for insurance purposes
An independent valuation of your property will help to avoid underinsurance where the money you could claim on insurance would not be enough to rebuild. Insurers can also apply a policy clause called the ‘average clause’, which permits them to deduct a percentage from any property claim (no matter how large or small) by the proportion you are underinsured. If you are underinsured and need to make a significant structural damage claim, for example after a flood or storm, you may not get the payout you expect.
Assess your coverage needs
Aside from rebuild costs, calculate the value of your possessions to determine the amount of contents insurance you need. It’s also important to consider alternative accommodation costs in case of temporary relocation due to an insured event.
Remember your outbuildings
The standard home insurance policy with buildings and contents cover extends to any outbuildings on your property, such as sheds. You should include the cost of replacing these structures in your total sums insured.
Understand the different policy types
The most suitable policy for you may depend on your property’s construction materials, who will live there, and whether you want to combine buildings and contents in one policy.
Make use of the specialists available to you
Engage specialists such as an insurance broker and a property surveyor. An insurance broker can help you navigate the complexities of home insurance and find a policy that suits your needs. A property surveyor can assess the property’s condition and identify any potential issues that might affect your insurance coverage or premiums.
Review the policy details
When you have chosen your home insurance policy, carefully read the terms and conditions, particularly the exclusions and limitations. Ensure you understand what is covered and what is not and ask your insurance broker to clarify any queries. Pay attention to the deductible amounts (the insurance excess) and ensure they are affordable if you need to make a claim.
Our team will gladly help you source your first-time buyer home insurance. You can get a home insurance quote online or by phone on 0818 222 700.