Consumer Corner: Slash your home insurance premium with these simple steps

The Central Bank says thousands of home insurance policy holders are paying over 32% above average on their premium

Should an unforeseen event arise, home insurance offers you both peace of mind as well as potential financial reparations.

Home insurance is one of those things you could pay all your life and never have to use. However, it is essential if you own a home, and the day could come when you have to use it.

The important thing to bear in mind with home insurance is to make sure you are not overpaying for it or indeed underpaying it. Premiums are rising faster than inflation but there are simple, effective ways homeowners can slash their monthly bills.

In Ireland, there are 1.3 million home insurance policy holders. Among this cohort, experts believe that thousands of people are paying too much, sometimes by hundreds of euro. The Central Bank of Ireland has calculated that people who have stayed with their home insurance provider for nine years or more are overpaying by 32%.

Shop around

The first thing to do if you have home insurance is to shop around. A spokesperson at the online home insurance broker, insuremyhouse.ie, said that homeowners who renew their policies without shopping around could be paying double what they should be. The broker reported huge discrepancies in premiums, with figures for the same policy ranging in price from €585 to €285.08.

Ask for bundle deals

Jonathan Hehir, Managing Director of Insuremyhouse.ie said:

“When it comes to shopping around successfully, the key to the best value is making sure you get a wide number of quotes. Don’t limit yourself to just one or two from the main providers.” As well as shopping around, check if your insurance company will offer a ‘bundle’ deal or discounted price if you bundle together home, motor, and other insurance policies. It is worth inquiring if they will extend a further discount if you add a spouse to your insurance package.

Mention upgrades

Many insurers will offer discounts if there’s an alarm on the house so it is prudent to mention it. Added extras to the house like upgraded heating, plumbing, and electrical systems to reduce the risk of fire and water damage could also help to bring down your premium. 

Take inventory

A portion of your home insurance premium will incorporate the value of the possessions in your home. As the years go by, review the inventory to ensure you aren’t still paying for something you no longer have.

“By shopping around and by being a little savvier about your policy details, there are plenty of ways to potentially curtail your costs. Surely, savings of this size are worth that little bit of extra effort,” says Hehir.

Review rebuild costs

The premium is one element of your home insurance and should the time come that you need to use your insurance, it is important you do not leave yourself financially exposed.

Alliance Insurance recently revealed figures showing 56% of Irish homeowners did not check the rebuild cost of their homes in the last year. This means a percentage of people could be under-insured.

Start small

Building costs are rising so now is a good time to review your policy. The Society of Chartered Surveyors Ireland is a good place to start and they  have a good calculator on their site that can help.