Homeowners Experience Difficulty Finding Affordable Home Insurance

Almost 1 in 3 Owners Experience Difficulty Finding Affordable Home Insurance

Homeowners are being reminded of the important of shopping around at the time of renewing their home insurance, after recent research found many Irish people have had difficulties finding affordable cover.
In response to a survey of over 4,000 homeowners undertaken by AA Home Insurance, 8.34% of respondents strongly agreed that obtaining home insurance for a fair price had proven difficult for them. Meanwhile, a further 20.88% were partially agreed that finding affordable cover had been a challenge for them.

“As with any insurance policy, it’s hugely important that you shop around at each renewal window in order to keep costs down and secure cover for a price that is right for you,” Conor Faughnan, AA Director of Consumer Affairs stated. “Quite often, many of us will fall into the trap of renewing with the same provider year in, year out and paying more for cover as a result, instead of putting a few minutes into comparing quotes from a number of providers and potentially saving as a result.”

“The good news is there are a few things you can do to keep the cost of insurance down. Often people will insure their home for the price they paid when purchasing the property, but doing so could lead to you paying more for cover than you need to. Instead, insuring your home for what it would cost to rebuild the property will give you a more accurate home insurance quote for your circumstances.”

The AA survey also found that 1 in 12 homeowners would favour a higher excess in the event of a claim if it meant they would otherwise pay less for cover. 8.53% of those surveyed strongly agreed that they would prefer to pay a reduced home insurance premium even if it meant paying a higher excess fee if they did have to claim.

“Increasing your voluntary excess that you would have to pay in the event of a claim, if you are in a position to do so, can help lower your overall home insurance costs, but it is an option that many people won’t be aware of,” Faughnan added. “Similarly, if your current financial situation allows you to do so, paying your home insurance in one annual instalment as opposed to monthly payments can help lower the cost of cover as you won’t have to worry about covering the interest on monthly payments.”