With all the changing weather and different storm events that Ireland has experienced over recent years a lot of people are discovering that their home insurance policies didn’t cover them for as much as they had expected or even at all. That has meant huge unanticipated expenses in some cases, namely in the area of flood damage.
Here at Insuremyhouse.ie we have noticed some mistakes that people getting home insurance. We have outlined three of the most common mistakes and how you can avoid making them when taking out a home insurance policy.
The Cost of Fine Print
So before the next big storm or flooding hits, we are advising you to be proactive. You may not be able to escape Mother Nature, but you can be better prepared by reviewing your home insurance policy to make sure you’re adequately and correctly protected as much as possible.
It’s better to know now what’s covered and what’s not rather than later, when you have to file a claim and find out that the insurer won’t pay due to you not being covered for that claim.
3 Home Insurance Mistakes You Want To Avoid
As you read through your home insurance policy, see if you’re making any of these three mistakes and take the appropriate steps if you are:
Mistake No. 1: Under-insuring your house
Failing to have enough insurance to cover the cost of rebuilding your house if it’s destroyed is one of the biggest mistake people make.
Why? Well, some people only take out enough insurance to cover the amount of their mortgage. The mortgage may only be 80 or 90 percent of the value of the house, depending on the original down payment.
Another thing some people do is insure an amount equal to the current value of their house. In reality, this figure may be far less than the actual cost of rebuilding your home, including labour and supplies. In many cases both of those may rise sharply after a storm or flood, when there’s big demand and short supply.
What should you do?
First, calculate how much it would cost to rebuild your home, including labour and supplies. Make sure you factor this into your insurance policy and not the current value of the house.
Once you know what it would cost to rebuild, see if your coverage is close to that figure. If it isn’t, increase your protection.
When estimating your rebuilding cost, remember to add in what you’d pay to replace any special features in your home, such as marble floors or high-end woodworking.
Be sure you’re adequately covered for your valuables, including jewellery, art, antiques and computer equipment too.
Mistake No. 2: Assuming you have flood insurance
This coverage is sometimes not included as part of a standard home insurance policy. If you live near a lake, river, flood plain or the ocean, you should definitely look into if you have it. A lot of insurance companies will exclude flood cover if you are located near a body of water that is prone to flooding.
Coastal area homes aren’t the only ones that can be affected by flood. Inland areas can also sustain serious flood damage from ground water too. This is just one reason to check if flood cover is part of your policy.
What should you do?
Most insurance companies today use what is known as geocaching to determine flood pains and flood prone areas. Make sure you check with them if you have flood cover on your policy.
Mistake No. 3: Missing Out on Potential Discounts
Many people do not realise that they could be missing out on big discounts and savings with their home insurance in Ireland.
What should you do?
We always encourage people to ask about any additional discounts that may be available to them.
You can also get a cheaper home insurance policy by simply investing in simple home security. Taking more responsibility in the safety of your home is a good way to reduce the cost of your home insurance.
Simple things such as installing deadbolt locks, smoke alarms and an unmonitored burglar alarm will cut costs, but having a monitored home security system will save you the most. Even installing a fence around the property reduces the risk of vandalism and burglary, resulting in lower rates.
Our home insurance team are specialist in getting our clients the lowest possible quote for their home insurance which includes any discounts available to them. We’ve already saved thousands of people money on their house insurance policies.
Why not find out how much we can save you on your home insurance quote by filling out our quick online quote form or by speaking directly to one of our home insurance specialists on 016032999 now.