Making Cents: Cover all bases searching for home insurance

Home insurance 

With recent research suggesting more than 20% of mortgage holders believe it is compulsory to take out home insurance and/or mortgage protection with their lender, homeowners are being encouraged to instead shop around.

Of the 1,000 respondents to a recent survey, which was carried out by iREach for Insuremyhouse.ie, 52% said they bought insurance from their mortgage provider either because they thought they had to, they felt pressurised or obligated to do so, or they thought it would help with their application.

For others (19%), they went with their lender because they found it easiest to do it all in one place. This is understandable, the paperwork can feel overwhelming when buying a property, particularly your first home. Being able to tick another job of the to-do list, without having to do more research or contact another company, is tempting.

But Deirdre McCarthy, manager with Insuremyhouse.ie, wants to remind people of the potential savings they could be missing out by going with their lender without shopping around.

“Industry figures have shown that home-buying has remained resilient in 2020, despite the pandemic, but with finances undoubtedly tighter for many people, it’s more important than ever to let people know their options to ensure they don’t end up paying over the odds,” she said.

“With 14 different home insurance providers in the market, it’s clear that those who limit themselves to just one are unlikely to get the best deal. 

Last year we ran a cost comparison analysis which revealed that some banks are giving home insurance quotes which are up to 90% higher than the best rates achievable on the market.

“Shopping around for any insurance product is always going to yield the best value. By taking your home insurance or mortgage protection policy directly from your lender, without any further assessment of what else is being offered on the market, you are automatically ruling out any competition in the market – which means there’s a very good chance you’re not getting the best value.” If your home insurance is up for renewal, or you are about to take out your first policy, there are a number of factors to bear in mind when shopping around.

As the Competition and Consumer Protection Commission, ‘when you buy insurance, it is important to remember that the policy with the lowest premium is not always the best’.

If you get a number of quotes and want to compare them, it is not as simple as looking at the price. You also need to compare the levels of cover and benefits. Items to check include the level of cover against losses relating to a fire, storm, flood, theft and accidental damage.

The cost of cover will be affected by the location of your home. Urban areas tend to have more burglary claims than rural areas, which can mean higher charges for homes in those areas, and living in an area prone to flooding can also have a serious impact on your insurance costs.

When shopping cover, always clearly highlight any security features in your home, many insurers will offer discounts for burglar alarms and other features, “You don’t have to take both buildings and contents insurance out with the same provider and it is worthwhile to shop around,” the CCPC says, but adds that you may get better value by combining the cover in one policy.

The Commission also recommends checking to see if you will get a discount from an existing insurance provider, such as your car insurer, if you also take out home insurance with them.

You should also make sure that you are not paying twice for cover for things like smartphones, tablets and other tech items.

“If you have other insurance products such as gadget insurance, you may find that the items are also covered by your home insurance policy,” the CCPC says. “Make sure you are not doubling up on insurance cover with different policies.”

Take a walk down the middle aisle

Having stopped Specialbuys during the most recent round of retail restrictions, Aldi's middle aisle deals are back from today, with new ranges going on sale three times a week between now and Christmas. New items will be added every Tuesday, as well as the usual Thursday and Sunday drops.

“We know that the return of Specialbuys will come as welcome news to our loyal customers," John Curtin, Group Buying Director at Aldi Ireland said. "Our hard-working staff will make sure that the shelves are fully stocked with all of the items you know and love, as well as some new surprises." 

It begins today, with Christmas lights and decorations, plants and children’s toys all going on sale from this morning. 

Other dates worth taking note of include Tuesday December 8, when Christmas Jumpers and pyjamas for the festive season go on sale, and Sunday December 13 when Aldi will be selling a range of family board games.