Consumers could save more than 50 per cent on the cost of home insurance by shopping around and being aware of the different discounts available, according to the Irish Financial Services Regulatory Authority (Ifsra).
In its second independent home insurance cost survey, published yesterday, premiums quoted by the nine main insurance providers for the same product differed by as much as €500 per year. Five of the six profiles featured in the survey reveal savings in excess of 50 per cent.
For example, a three-bedroom semidetached house in Co Kildare was quoted €462 by FBD but €966 by Quinn Direct, a difference of €503.
Equally, a one-bedroom rented apartment in Dublin was quoted a premium of €333 from Ecclesiastical for contents-only insurance, while FBD offered the same package for just €140.
Those figures are for companies that actually quoted a premium. Five of the nine companies - Allianz, Eagle Star, Hibernian, Royal & Sun Alliance and Simply Mortgages - refused to quote for the illustrative three-bedroom property, presumably as there had been a previous €50,000 claim for an unexplained fire.
In the past, Ifsra has received many calls through its consumer helpline from people living in areas prone to flooding or subsidence who were having trouble getting insurance. The latest survey highlights that difficulty.
Quinn Direct refused to quote for a Co Sligo house that was prone to flooding, while three others excluded any flood cover in their quotes. A further four issued quotes subject to an investigation of the flood exposure.
Ecclesiastical refused to quote insurance for a detached house located in an area where some houses experienced subsidence but it had not. Six other firms issued their quotes subject to an investigation.
"We would always encourage people to shop around before settling on one insurance company. Also, different companies offer differing products so it is very important to look at exactly what they're offering you," said a spokeswoman for Ifsra.
"Cost is not always the most important thing. You need to find the most appropriate insurance for your needs," she said. "Look at what extras are being offered. It can make a difference if you have a smoke alarm, a burglar alarm or if you already have car insurance with that company. Also, if you are prepared to accept a higher excess [the amount of any claim paid by the householder], this can often push your premium down a bit."
The financial watchdog also warned consumers who had been insured by the same company for a long time to review their level of cover periodically. "Make sure that you are not either over or underinsured. For example, if you have recently acquired an engagement ring or an expensive digital camera or something like that, you may need to update your contents insurance to cover it," said the spokeswoman.
The home insurance cost survey can be viewed online at www.itsyourmoney.ie, and Ifsra can be contacted through its lo-call helpline 1890-777777.
