Consumers urged to shop around for insurance

CONSUMERS could save themselves several hundred euro by shopping around for the best deals on home insurance, an industry watchdog said yesterday.

The Financial Regulator noted that FBD had some of the best deals, with savings of up to €230 euro and the lowest quotes on offer for people living in rented accommodation.

The watchdog advised tenants in apartments, bedsits and houses to get their personal possessions insured.

Mary O’Dea, consumer director with the Regulator, said: “Many people do not get home insurance when they are renting and can be surprised when they find that their landlord’s insurance does not cover their personal possessions.

“It is important to make sure that you could replace your possessions if you had a fire or burglary, so check to see whether you need your own insurance and look at our survey to see where you can get the best value.”

The lowest quote for a personal policy for a rented apartment in Dublin was an affordable €71 a year, the survey said.

The Regulator gave six insurance options, with FBD offering the cheapest quotes in five.

* A three-bed bungalow in Laois with a rebuilding cost of €175,000 and contents worth €40,000. Quotes ranged from €267 with FBD to €423 with Eagle Star.

* A four-bed semi-detached house in Limerick city with rebuilding costs of €190,000 and contents valued at €50,000. Royal & Sun Alliance gave the cheapest quote at €331, while AXA was the most expensive at €427.

* A two-bed rented apartment in Dublin 9 with contents worth €20,000. FBD offered a policy for €71 while AXA planned to charge €153.

* A four-bed detached bungalow and garage in Carlow with rebuilding costs of €200,000 and contents worth €40,000. Again, FBD offered the lowest rates at €268 and Eagle Star was the dearest at €458.

* A three-bed detached house in Mayo with a 10-year-old flat roof extension. The rebuilding cost is €175,000 and the contents are worth €45,000. FBD quoted €295 compared with €400 from Hibernian, while four leading firms refused to offer a quote.

* A three-bed, semi-detached, timber-framed house in Offaly with rebuilding costs of €173,000 and contents valued at €25,000. Quotes ranged from a low of €264 with FBD to €495 with AXA.

The survey was challenged by the Irish Brokers Association, which claimed that in its own independent survey it beat the best quotes obtained by the Financial Regulator in four out of six cases, and matched the best quote in the other two.

Stuart Reid, IBA director, general services, said the Regulator had only asked the leading insurance firms for quotes.

“By focusing their surveys in this way the Financial Regulator is, in essence, failing to follow its own advice on shopping around,” Mr Reid said.

“Home insurance policies are complex and need to be sold on the level of protection they afford the insured as well as on cost. It is essential that consumers seek independent advice to help them decide on the product that best suits their needs.”