CONSUMERS HAVE been urged by the Financial Regulator to check the excess on their home insurance policies, as the amount can vary between €100 and €500.
In the Financial Regulator's home insurance cost-comparison survey for August, the excess applying to each quote is featured for the first time. The excess is the amount of each claim that consumers must pay and may only apply on certain types of claims.
For example, the excess on a three-bedroom detached house with a rebuild value of €160,000 and contents valued at €48,000, in Mullingar, Co Westmeath, ranges from €100 with FBD to €500 with AIGDirect.
"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," said Sharon Donnery, the Financial Regulator's head of consumer information.
"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."
Consumers affected by the recent floods should note that the survey does not include quotes for homes in areas liable to flooding.
The cost-comparisons also reveal that a burglar alarm and security locks fitted on doors and windows can reduce an annual premium by over €50. For a house that doesn't have these fittings, AIGDirect charges €465 for a three-bedroom house in Lucan, Co Dublin, with a rebuild cost of €250,000 and contents valued at €100,000. With alarm and security locks the rate drops to €414.
The findings show consumers may find it hard to get a quote if their home does not have these measures, with providers including Allianz, AXA and Hibernian declining to quote for a house with contents over €100,000 and without an alarm and security locks.
The biggest discrepancy in quotes was for a five-bedroom mid-terrace on Main Street, Edgeworthstown, Co Longford. The family business, a newsagent, is run from the ground floor. The value of the property is €750,000, with rebuilding cost of €300,000. Contents are worth €120,000.
Quotes ranged from €737 to €1,986 for contents insurance, business interruption (€37,500), loss of money and public liability. Quinn Direct was the cheapest, though with an excess of €1,125. Hibernian offered a commercial quote which was the dearest.
