Home insurance pitfalls to avoid, homeowners potentially underinsuring

Some home insurance considerations to think about. 

Almost one third (31%) of homeowners researched have upgraded their homes in the past three years, including insulation and solar panel installation, highlighting growing customer focus on energy efficiency and BER ratings. Despite the prevalence of home upgrades however, 61% of those who made improvements didn’t notify their insurers, leaving them at potential risk of being underinsured or missing out on potential savings on their premium.

Home insurance pitfalls to avoid

The research also indicates that almost a quarter (24%) of homeowners don’t understand the concept of underinsurance – where the sums insured on a policy are at an amount that is less than the value it will cost to reinstate, repair or replace them.

With the rising prevalence of severe weather events in recent years, 52% of homeowners across Ireland now state storm damage as one of their top three fears in relation to their homes – reinforcing the importance of ensuring insurance policies provide homeowners with adequate protection.

When it comes to policy renewal, just four in ten customers (40%) are reviewing their terms in detail before renewing, and almost half (48%) admit to renewing once the price meets their expectations. Bank of Ireland is encouraging customers to review their insurance policies carefully before renewing, to ensure their policy accurately reflects the requirements of their home and its contents.

Jewellery is called out predominantly as the most cherished item in respondents’ homes – with jewellery, computer technology, furniture and mobile phones the top four items homeowners are most concerned about losing or damaging.

Niall Moran, Head of Sales, Bank of Ireland Insurance Services, said: “Many customers are investing in upgrades such as heating systems, energy efficiency improvements and security features, but too often these changes aren’t reflected in their policies – meaning some are missing out on potential cost savings.

“Our message is simple: always review your policy before you renew. Check your sums insured, declare any upgrades and ensure your cover reflects the true value of your home and contents. We are committed to providing clear guidance and practical support to help customers protect their homes.

“At Bank of Ireland we provide up to 20% off insurance premiums for Ecosaver Mortgage customers who are making sustainable improvements to their homes – so you’re improving the environment and saving money at the same time.”

Bank of Ireland’s insurance advice includes:

• Carefully review your annual home insurance renewal notice
• Check Buildings and Contents cover – renovations and upgrades may impact sums insured
• Ensure contents cover reflects the full cost of replacing specific personal items and household goods
• Notify your insurer of a claim as soon as possible and before undertaking any repair work

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