Three Common Home Insurance Mistakes To Avoid
House insurance helps to protect your home against accidents, damage, and natural disasters. Unfortunately, many Irish people are learning that their home insurance policy doesn’t protect them as well as they thought it might. If your home insurance doesn’t cover what happens, it means you have to pay out of pocket for the repairs, which can get expensive.
House insurance in Ireland can be a tricky field to navigate. You want to be sure you are getting the coverage you want and need. With that in mind, here are three home insurance mistakes that you should avoid at all costs.
- Under-Insuring Your Home
When you buy house insurance from the insurance provider, one of the biggest mistakes you could make is not ensuring you have enough coverage to rebuild your home if it gets destroyed.
Some people only take out the insurance they need to cover the cost of their mortgage. This could be only 80 or 90% of the total value of the home, depending on the down payment you made at the time of purchase.
Another common mistake is to only ensure an amount equal to the current value of the property. The reality is that the present value could be much less than the actual cost of rebuilding it in a crisis, especially when you consider the costs of supplies and labour. These costs increase exponentially following a flood or storm when there are much more demand and much less supply.
The first step to combat this mistake of house insurance in Ireland is to calculate the costs of rebuilding your home, including the costs of supplies and labour. Make sure that you factor these costs into the insurance policy, rather than just the current value of the property.
After getting an idea of these costs, you can check to see if you have enough coverage. Also make sure that your valuables are covered, including art, antiques, jewellery, and expensive technical equipment.
If you don’t, then talk to your insurance provider and increase your insurance protection. If your existing insurance provider is unable to help you then visit this website (https://www.theaa.ie/home-insurance.aspx) for the solution.
- Assuming You’ve Got Flood Insurance
Another common mistake by people while having house insurance in Ireland is assuming that your home is cover against flooding. Flood insurance isn’t always included in basic home insurance though. If you live by a body of water, such as a river or the ocean, then you need to make sure you have flood insurance.
Many homes are at risk of flood damage, even inland homes that can be damaged by groundwater. It’s why it is so essential to make sure you have flood protection.
Insurance companies will generally use geocaching to find flood plains and determine how flood-prone an area is. Make sure that you check if you have flood cover or not with your plan.
- Missing Out on Potential Discounts
Most people don’t realise they could be missing out on massive savings and discounts with house insurance in Ireland.
We encourage people to discuss these possible discounts with their insurance provider, just to see if they exist. There’s no harm in asking.
You can potentially save money on insurance by investing in home security. Taking on more of the responsibility for keeping your home safe is one way to reduce the cost of house insurance.
Small and simple things like smoke alarms, burglar alarms, and deadbolt locks cut the cost of home insurance. For the best deal though, you want to install a monitored home insurance system. Just having a fence installed around the property will reduce the risk of burglary and vandalism, which can reduce home insurance costs.
House insurance doesn’t need to be complicated. Make sure that you have enough coverage against things that matter to you.