Buying your first home is an exciting and often overwhelming process. Among the many to-dos on your list, arranging home insurance is essential, not just to protect your property, but because mortgage lenders require it before they release funds. For first-time buyers in Ireland, understanding how home insurance works, what to look for in a home insurance quote, and how to get the best value can help you save money and avoid future headaches.
This guide breaks it all down: what home insurance covers, what to look for in a quote, how to lower your premium, and why it’s a must-have for every homeowner.
What Is Home Insurance?
Home insurance also called household insurance is a policy that protects your property and its contents against loss or damage. In Ireland, there are two main parts:
1. Buildings Insurance
This covers the structure of your home, walls, roof, floors, windows, fitted kitchens, and permanent fixtures. It also includes outbuildings like sheds and garages. Most mortgage lenders require you to have building insurance before completing the purchase.
2. Contents Insurance
This protects your personal belongings inside the home: furniture, electronics, clothing, jewellery, and other valuables. While not required for a mortgage, it’s highly recommended.
You can buy these separately or combined as a single policy.
What to Look for When Reviewing Quotes
When comparing home insurance quotes, don’t just go for the cheapest one. Look closely at the following features:
1. Sum Insured
This is the maximum amount the insurer will pay out. For buildings insurance, it should reflect the rebuild cost (not the market value). The rebuild cost is the estimated cost of rebuilding your home from scratch , this figure can be found in your mortgage valuation or calculated using the Society of Chartered Surveyors Ireland (SCSI) rebuild calculator.
For contents insurance, make sure the amount is enough to replace all your belongings at today’s prices.
2. Cover Limits
Policies often have individual limits for items like electronics, jewellery, or bicycles. If you own high-value items, check if they’re fully covered or need to be listed separately.
3. Policy Inclusions and Exclusions
Not all policies are the same. Read the terms carefully to see what’s included and excluded. Look for:
- Storm and flood cover
- Fire and smoke damage
- Theft and vandalism
- Burst pipes and water damage
- Accidental damage (sometimes optional)
- Alternative accommodation if your home becomes uninhabitable
4. Excess Amount
The excess is the amount you must pay out of pocket when making a claim. A higher excess usually means a lower premium, but make sure it’s affordable.
5. Optional Extras
Some policies allow add-ons for extra peace of mind, such as:
- Accidental damage
- Home emergency cover (plumbing, heating, etc.)
- Personal possessions cover (for items outside the home)
- Legal expenses cover
Only pay for extras if they genuinely suit your needs.
6. Customer Service and Claims Record
It’s worth checking reviews or asking your broker about the insurer’s track record when it comes to processing claims. Cheap cover is no good if it’s hard to claim when you need to.
How to Reduce the Cost of Home Insurance
As a first-time buyer, you’re likely already juggling solicitor fees, stamp duty, and mortgage payments. Thankfully, there are several ways to keep your home insurance affordable without compromising on protection:
1. Shop Around
Don’t auto-renew or go with the first quote you see. Use comparison websites, contact insurers directly, or speak with a broker who can search the market on your behalf.
2. Combine Buildings and Contents Cover
Bundling both policies with the same provider usually results in a discount and simplifies admin.
3. Increase Your Voluntary Excess
Agreeing to pay a higher excess can lower your premium, just make sure it’s a realistic amount for you in case you do need to claim.
4. Improve Your Home Security
Insurance providers often offer discounts for homes with:
- Burglar alarms (especially monitored systems)
- Deadlocks on windows and doors
- Security cameras or smart home security systems
5. Avoid Over-Insuring
Only insure what you need. Don’t base your buildings insurance on your home’s market value , use the rebuild cost instead. Likewise, do a proper contents inventory rather than guessing.
6. Pay Annually Instead of Monthly
If you can afford to, paying your premium in one lump sum usually works out cheaper than paying in monthly installments (which may include interest or admin fees).
7. Check for No-Claims Discounts
Just like car insurance, some insurers offer discounts for claim-free years. Over time, this can lead to significant savings.
Benefits of Home Insurance
Home insurance isn’t just a box-ticking exercise for your mortgage provider. It offers real financial protection and peace of mind.
1. Financial Protection Against Big Losses
Whether it’s a fire, storm damage, or burglary, home insurance helps cover repair or replacement costs that could otherwise be financially devastating.
2. Peace of Mind
Knowing your home and belongings are covered lets you sleep a little easier. If disaster strikes, you won’t be left trying to cover the cost yourself.
3. Legal Requirement (for Mortgages)
Buildings insurance is mandatory for almost all mortgage providers in Ireland. Without it, your loan can’t be drawn down.
4. Cover for Temporary Accommodation
If your home becomes uninhabitable due to an insured event, many policies will cover the cost of temporary accommodation, something that’s easy to overlook but very valuable.
Final Thoughts
As a first-time buyer, it’s natural to feel overwhelmed by all the paperwork and decisions. But when it comes to home insurance, taking a bit of time to compare quotes properly, understand what you’re getting, and tailor your policy to your needs can result in better protection and real savings.
Remember: the cheapest quote isn’t always the best. Prioritise value, not just price. Work with a reputable insurer or broker, and review your policy annually to ensure it still fits your circumstances.
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