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How to Guide: Home Insurance

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What is Home Insurance?

Home insurance is a type of insurance policy that provides financial protection for your home as well as its contents.

It covers various risks that could cause damage to your property or result in liability claims against you as the homeowner.

Why do I need Home Insurance for my mortgage?

Having adequate home insurance is required by all lenders as part of your mortgage loan agreement.

If your property is damaged, your home insurance provider will pay out the properties reinstatement value to the lender. The properties reinstatement value refers to a figure that covers how much it would cost to rebuild your property from scratch. Your properties reinstatement value is included in your home valuation report.

This helps to protect the lenders investment in your property by ensuring that they are covered in the event your property is damaged or destroyed due to unexpected events such as fires, water damage, or theft.

How much do I need to insure my home for?

Your home insurance will need to cover the reinstatement value of your property that is shown on your home valuation report.

To learn more about home valuations you can visit our “How to guide: Getting your home valued”.

You will need to take out a full cover home insurance policy. This means that your entire property must be covered, as lenders will be looking to ensure that no part of your property is excluded from your home insurance policy.

How do I update my existing Home Insurance?

If you are a switcher and already have home insurance, you can ask your existing home insurance provider to amend your existing policy to match the home valuation figure required for your new mortgage.

How do I take out Home Insurance?

If you are a first time buyer and purchasing a property, we at moneysherpa are able to get you a home insurance quote from our insurance partners Quoteme.ie.

Quote Me work with all home insurance agencies currently on the Irish market. If you wish to get a quote for your home insurance with Quote Me, you can click the link down below where you can fill in your details and get a call for a free quote.

Get your home insurance quote with Quoteme.ie.

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However if you don’t wish to go with Quote Me, you can shop around on different insurance providers websites and find a quote that works for you. The type of home insurance you take out doesn’t matter, as long as your home insurance covers the properties reinstatement value and is full cover.

It’s important to note that your properties reinstatement value shown on your home valuation report is only valid for 4 months. Therefore, it’s best to get a quote for home insurance as soon as possible to avoid having to get another home valuation report, which will cost you more time and money.

Key takeaways- Home Insurance.

When taking out a new home insurance policy or amending your existing one, it’s important to check that:

  • Your name and the names of any other applicants are included on the home insurance policy.
  • The address of your property your insuring is included on the home insurance policy.
  • Your home insurance policy covers the properties reinstatement value.
  • Your home insurance policy covers the entire property.
  • Your property is not in a flood zone, as if your property is in a flood zone it becomes extremely difficult to get home insurance.
  • You get your home insurance policy put in place before your home valuation report becomes invalid after 4 months.

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