How hard do you work to earn €400? If Irish Country Living was to tell you that you could get that money simply by making a few phone calls, perhaps you’d think we were encouraging you into some sort of a scam. Except it isn’t a scam, it’s a simple switch of your home insurance.

Recent research by the National Consumer Agency (NCA) shows that a couple living in a three-bed bungalow in Midleton, Co Cork, were quoted between €279 to €700 for a policy, a difference of €421. Furthermore, quotes ranged from €498 to €190, a difference of €308, for a three-bed house in Tubercurry, Co Sligo.

However, despite the significant range in quotations, just 37% of consumers compare home insurance quotes each year. And even though they might pick up the phone, only 13% actually make the switch.

Making the switch

Fergal O’Leary, director of research and policy with the NCA, says there are two reasons for this.

“The first is that consumers feel overwhelmed by the amount of quotes they feel they must check. From car insurance to electricity bills, bank fees and mobile phone providers, it can feel a bit much to be ringing around every few months. The easier option is to just let your policy roll over from one year to the next.

“The other reason why we don’t make these savings is because people think it’s a lot more hassle than it actually is. However, out of all the switches you can make, home insurance is one of the easiest, about as easy as changing your car insurance.”

Although making the switch is simple, comparing like with like requires a bit more effort. You should always read the small print and think about your own situation.

Your situation

Consider things like; where do you store the lawn mower? Does it rest in the yard during the summer? Ask how your policy covers items stored outside of the house but on the grounds. Consider that expensive engagement ring. Does your house insurance cover it if something happens when you are out and about? And what about if the oil gets stolen from your heating tank? These are all important questions. The NCA has an online checklist to help jog your memory.

Lower quote, lower excess

One of the most important things to consider is the excess on your policy. Contrary to what you would think, a lower quote doesn’t necessarily mean a lower excess. For example, let’s go back to our house in Tubercurry, Co Sligo.

The highest quote this family received was from AIG Europe Ltd, costing €498, but their excess is also the most expensive at €500.

This is a pretty hefty sum to pay if something goes wrong. At €190, their cheapest quote had an excess of €350. However, perhaps you might opt for the slightly more expensive quote with Allianz (€232) or FBD (€253). Both these companies have the lowest excess of €250. The figures alone highlight that the most expensive quote doesn’t necessarily mean you’ll be paying less if something goes wrong.

Finally, if the thought of picking up the phone and making all those calls seems a bit much and you’re thinking of ringing a broker, it’s important to check who they quote for and make sure they aren’t tied to one company.

Hints and tips

Here are five tips for reducing your home insurance quote:

  • 1 Pay the full whack in one: While it’s tempting to pay a monthly instalment, it will cost you more in the long-term. Also, you may get a discount by taking out a number of policies with one company, such as home, farm and car insurance.
  • 2 Keep your home secure: Having an alarm or even neighbourhood watch will be beneficial to your quote, so be sure to mention this to your provider. Also, if there is someone at home throughout the day, let them know.
  • 3 Fire alarm: Ensure this is fitted correctly and is in good working order.
  • 4 Think carefully before making a small claim: Insurance is there for a reason. If you really need it, be sure to use it. However, claiming for something like a mobile phone may not be worth it given the excess you’ll have to pay. Your no-claims discount can also be very valuable, adding a reduction of up to 50% over five years in some cases.
  • 5 Secure your house: When you’re away, ask someone you trust to collect the post and to open and close the curtains. Also think about time-switch lights to deter burglars. CL
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