Consumers warned over excess costs on insurance

HOUSEHOLDERS have been warned not to go overboard with excess on their home insurance policies after a survey showed significant price differences between eight well-known insurance companies.

The survey by the Financial Regulator found while quotations for popular policies varied by anything from €80 to €1,249 between the different companies, the variations became less clear when the excess that applied in each case was considered.

The excess — the amount the policyholder undertakes to pay themselves before making any claim — varied by five times with many of the standard home insurance policies, and by over 10 times in the case of a property that had both residential and business accommodation.

All the details are available on the regulator’s website, itsyourmoney.ie, and Sharon Donnery, head of consumer information, urged anyone taking out insurance or renewing a policy to check the small print and do their sums first.

“While some quotes may appear to offer better value, it is important to check what excess applies, as the higher the excess, the more you have to pay from your own pocket if you have to make a claim,” she said.

“Some insurers will reduce your premium if you opt for a higher excess but you need to consider whether the saving you would make is worth it as you won’t be able to claim for losses that are less than your excess.”

Ms Donnery added: “It’s worth asking if you could get a discount on your premium for any of the following — a smoke alarm, no previous claims, your age or having another policy through that company.”