The Financial Regulator has published a new survey on home insurance, which says householders can make savings of up to €320 a year on such products, which provide cover for loss or damage to a home or its contents.
The survey compares the cost of insurance for six homes in counties Roscommon, Meath, Waterford, Dublin and Clare from the main providers in the market.
The largest saving shown in the survey is for a 130-year-old, three-bedroom victorian terraced house in Dublin 8 . Quotes on the property range between €520 and €840. In this case, Quinn Direct was cheapest and Eagle Star most expensive.
The regulator's consumer director Mary O'Dea said some people undier-insured their homes, while others over-insured.
'If your home is insured for too little and is damaged or destroyed, your insurance policy may not pay out enough to cover the cost of repairing or rebuilding it,' she said. 'If your home is insured for too much, you are paying a higher premium than you need to pay, and you will not get any extra benefit when you make a claim,' she added.
Ms O'Dea said people should insure their homes only for the amount it would cost to rebuild it. This is called the 'reinstatement value' and is different to the market value of your home, which is the amount you would get if you sold it.
The regulator also warns consumers to be aware of conditions attached to their cover. Its survey shows that a condition attached to one quote was that flood cover would be excluded due to flood risk, while a condition attached to another quote was that accidental damage cover was not included.
