Home insurance should be made to fit your needs

Home insurance policies are like shoes. They come in different styles and sizes but what you choose depends on your needs. Unless of course they're on sale, and then you may buy impulsively without thinking of your real requirements.

Bank of Ireland Insurance Services (BIIS) recently launched a new home cover policy in association with Royal & SunAlliance. The policy offers a 5 per cent discount on the premium and includes several new features.

Some of the BIIS offerings include: interest-free instalments when premium is paid by direct debit; automatic 10 per cent cover increase in December and one month either side of a wedding; policy discounts for burglar alarm, smoke detector, Neighbourhood Watch scheme participation and customers over 50.

Some of the items that are "new" for the BIIS policy are already offered by its competitors.

CGU, Ecclesiastical, Guardian, Hibernian, Norwich Union and Royal & Sun Alliance were surveyed by Family Money in relation to similar features offered in their policies.

Instalment payments: Bank of Ireland and CGU are the only insurers surveyed offering instalment payments at no extra charge. Guardian offers 10 monthly payments at 17 per cent APR while Hibernian and Royal & Sun Alliance offer the same number of direct debit payments at a 6 per cent charge and Norwich Union at 5 per cent. Ecclesiastical does not have an instalment option.

Wedding and Christmas discount: Norwich Union offers automatic wedding, but not Christmas cover. Guardian provides customers with a 25 per cent cover increase during the Christmas period and a 10 per cent increase one month either side of a wedding. Royal & Sun Alliance, Hibernian, Ecclesiastical, CGU and BIIS offer increased coverage around both events.

Intruder alarm discount: Bank of Ireland and Norwich Union offer 10 per cent discounts for intruder alarms. Ecclesiastical offers a 10 per cent discount on building cover and 25 to 40 per cent off contents cover when an intruder alarm is installed. Other companies specify the grade of alarm for which a discount is offered. Guardian and Hibernian require an IS199 standard alarm for a 10 per cent discount while CGU offers a 15 per cent discount for NSAI approved alarms. Royal & Sun Alliance offer between 5 per cent and 20 per cent depending on specifications relating to the alarm, installation and notification method.

Smoke alarm discount: only a few insurers offer discounts for smoke alarms. Ecclesiastical, Guardian and Hibernian all offer a 5 per cent premium discount.

Neighbourhood Watch or Community Alert Area discount: of those surveyed in addition to BIIS, only Guardian and Hibernian offer Neighbourhood Watch or Community Alert Area discounts. Both allow 5 per cent off while BIIS permits a 10 per cent discount.

Age discount: BIIS, Guardian and Norwich Union offer people over 50 a 10 per cent discount on premiums. Hibernian increases this to 15 per cent for those over 56. Ecclesiastical offers a 10 per cent discount on building contents for those over 55. Royal & Sun Alliance gives a 5 per cent discount for those over 45. Remember that, as with shoes, home cover policies must cater for your needs - you have to shop around.