Irish Financial Regulator warns consumers to check the excess on home insurance policies

22nd August 2008 

The Financial Regulator today published new online home insurance cost comparisons on its personal finance website, www.itsyourmoney.ie. The cost comparisons show the annual home insurance premiums for a range of properties throughout Ireland.

For the first time, the home insurance cost comparisons feature the excess that applies to each quote. This is the amount of each claim that consumers must pay themselves and may only apply on certain types of claims. The comparisons show that, depending on the provider, the excess can vary between €100 and €500, for standard claims on a home insurance policy.

Head of Consumer Information, Sharon Donnery explained how the excess could affect the quote you receive: “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. Some insurers will reduce your premium if you opt for a higher excess.  However, 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.”

The cost comparisons also reveal that you can reduce your annual premium by up to €50 by having a burglar alarm and security locks fitted on doors and windows. However, the findings also show that consumers may actually find it difficult to get a quote if their home does not have these security measures, with a number of providers declining to provide a quote.

Sharon Donnery added: “There are a number of other factors, which may entitle you to a discount on your home insurance premium. It’s worth asking providers 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. Then make sure you read the terms and conditions before you sign up, so that you know what exclusions could apply and what extras are included on your policy.”

The home insurance cost comparisons are available by logging onto the ‘cost comparisons’ section on www.itsyourmoney.ie. Consumers can also log on to get independent information, in plain English, on insurance products including a ‘shop around checklist’ to help keep track of quotes, discounts and benefits offered by providers, when looking for an insurance policy. 

Notes about this Press Release

The home insurance cost comparison shows the following ranges of quotes:

· 3-bedroom semi-detached house in Lucan, Co. Dublin. The rebuilding cost is €250,000 and the contents are worth €100,000. Quotes range from €316-€449

· 3-bedroom semi-detached house in Lucan, Co. Dublin. The rebuilding cost is €250,000 and the contents are worth €100,000. Unlike Profile One above this house does not have a burglar alarm or security locks on its doors and windows. Quotes range from €325-€465

· 4-bedroom semi-detached house in Clonakilty, Co. Cork. The rebuilding cost is €275,000 and the contents are worth €110,000.Quotes range from €241-€396

· 2-bedroom apartment  (rented student accommodation) in Maynooth, Co. Kildare. The contents are worth €7,000.Quotes for contents only cover range from €91-€330

· 3-bedroom semi-detached house in Swellan, Cavan, Co. Cavan. The rebuilding cost is €150,000 and the contents are worth €60,000. Quotes range from €212-€353

· 5-bedroom mid-terrace house on Main Street, Edgeworthstown, Co. Longford. The family business, a newsagent’s is run from the ground floor. The value of the property is €750,000, and the rebuilding cost is €300,000. The contents are worth €120,000. Quote to include contents insurance, business interruption (€37,500), loss of money and public liability. Quotes range from €737- €1986

· 4-bedroom detached house in Boyle, Co. Roscommon. The rebuilding cost is €275,000 and the contents are worth €110,000.Quotes range from €339- €575

· 5-bedroom bungalow in Tullow, Co. Carlow. The rebuilding cost is €275,000 and the contents are worth €110,000. Quotes range from €293- €457

· 3-bedroom detached house in Mullingar, Co. Westmeath. The rebuilding cost is €160,000 and the contents are worth €48,000. Quotes range from €196- €276

The Financial Regulator was established on 1 May 2003.  It is the single regulator for most financial services in Ireland.  Its overall mandate is to:
· Help consumers make informed decisions on their financial affairs in a safe and fair market; and
· Foster sound, growing and solvent financial institutions which give consumers confidence that their deposits and investments are secure.

The Financial Regulator’s consumer information resources are available by logging onto www.itsyourmoney.ie by calling the consumer help-line on lo-call 1890 77 77 77, or by dropping into the Information Centre at 6-8 College Green, Dublin 2, Ireland

Source: The Irish Financial Services Regulatory Authority  

See also:

Irish Financial Services Regulatory Authority - IFSRA