The short answer is no. It’s your house and you’re under no legal obligation to do so. If, however, you bought your home with a mortgage from, say, a bank or building society, and some of that mortgage is still outstanding, then the financial institution maywill insist that you insure the building against damage from storms, fires, flooding and other disasters. The lender simply wants its property protected, and until the mortgage is fully paid up, you and the lender are co-owners.
Having adequate and up-to-date house insurance is likely a condition of your mortgage agreement. Besides, it makes good sense for homeowners to properly protect what for many of us is the most expensive and valuable purchase we will ever make.
Find out what your home insurance covers
Now is the time to find out whether or not you’ve got adequate house insurance – not when you’re about to make a claim. Check the details of your policy carefully and talk with your home insurance provider. Make sure you know exactly what’s covered and what’s not. And read all the content of your policy documents.
Don’t underinsure your property
Many factors are considered by an insurance company when an insurance premium is being calculated. One of these factors is what it would cost to rebuild the house. Property owners could be tempted to declare a substantially lower rebuilding cost in order to save money. However, should the house be damaged or destroyed, these small savings can have massive financial consequences.
There are a number of useful online tools for calculating these costs, such as the calculator on the Society of Chartered Surveyors Ireland. Note too, any additions – for example, extensions, attic conversions, garage conversions or fitting of solar panels – that may increase the rebuilding costs of your property.
I’m renting, do I need home insurance?
As a tenant, it is your landlord’s responsibility to have the building insured. However, you should give serious consideration to taking out home contents insurance; it is not usually included in rental agreements. Like lots of things in life, you’ll only realise the value of such a policy when you need to make a claim. For instance, when there’s been an accident or a break-in.
How to calculate contents insurance?
An easy, helpful way to estimate the value of your contents is to go around your house with a calculator and add in a rough guess of what it would cost to replace every single item – all the furniture, curtains, decorations, carpets, blankets, electrical appliances, computers, gadgets, your personal items, your clothes, your jewelry, your valuables and so on. Upon seeing the total, you may find that you wish to take out contents insurance.
It is important to understand that when you value your items for contents insurance that you understand this is not the settlement figure. Typical wear and tear of items do apply. The full terms and conditions are available in your policy documents so always read them carefully.
Most insurers, including AXA, offer home and contents coverage together. This kind of insurance package could mean a significant reduction in the premium you pay for insuring the things that make your house your home. The best advice is to check with your insurance provider.
