Sunday Mirror - SM Money: Ride out the storm with a policy that is watertight …

HOUSEHOLDERS have been given a nasty home-insurance jolt - just as increasingly wintery weather has arrived to remind them of the menaces that can be posed by Ireland’s uncertain climate.
An official report has indicated that the vast majority of home- owners are under-insured.
Put at its bluntest, that means most householders in Ireland would find themselves seriously out of pocket - to the tune of tens, maybe hundreds of thousands of pounds - should the worse happen and their homes were destroyed.
So in the event of a fire or tumultuous flood, or some more spectacular piece of bad luck, lives could be changed for ever.

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In Ireland, of course, the prospects of anything worse than a flood or high wind striking a family home are remote. And even the chances of being washed or blown out of the house are slender enough.
But the fact remains that many people have to wake up to the realities of home insurance - according to the Insurance Brokers’ Assocation.
Their study showed that the Celtic Tiger’s property boom has taken a significant step towards spiralling repair costs - and particuarly the cost of building new-for-old.
- In 1997 house replacement was priced at IRpounds 63 a square foot in Dublin, IRpounds 60 in Cork and Galway;
- In 1998 the figures were IR65 in Dublin, IRpounds 63 in Cork and Galway;
- In 1999 they were IR86 in Dublin, IRpounds 80 in Cork, IRpounds 75 in Galway;
- In 2000 they have risen to IR103 in Dublin, IRpounds 85 in Cork and IRpounds 84 in Galway.
That represents a whopping 61 per cent rise in the case of Dublin - and many people are not even aware of the fact.
A spokesman for the brokers said: “It all goes to show how important it is, firstly to insure at all, and then, in these days of steeply-rising prices, to keep a close eye on the amount of cover you have.
“The frightening thought at the moment is that if a hurricane or something else hit the home of the average Irish person tonight, he or she would not have adequate cover to rebuild in the way they want.”"
Cover levels apart, the broker made it clear that in the case of Ireland, at any rate, most disastous eventualities are catered for.
“There might be a problem with flooding if your home is in a part of the country that is susceptible to that particular problem.
“Expressed starkly, companies will refuse to quote in some circumstances.”
A typical home insurance policy includes as insured events:
- Fire, explosion, lightning - and earthquake;
- Smoke;
- Storm or flood;
- Falling trees or branches;
- Falling aerials, satellite dishes or masts;
- Impact with buildings by aerial device, aircraft, train, or anything falling from them, as well as an animal or vehicle;
- Subsidence or landslip;
- Escape of water from pipes or household installations;
- Riot, civil commotion, labour or political distrubances, strikes, vandalism or malicious acts.
Present-day evidence suggests insurance companies, once criticised on all fronts being so slow to pay out in response to claims from their customers, have now got their act together.
The recent experience of west Dublin couple Mike and Theresa Whelan backs that viewpoint.
They woke up one morning to find their hot water bathroom tap had leaked through to the dining room of their home, damaging a number of antique pieces of furniture - not to mention an entire carpet - in the process.
A report to the insurance company the following day led to the swift appearance of an independent loss assessor.
Requested estimates for repairs were soon submitted and the insurers accepted - after minor adjustments - the quoted fees and payment was made within two weeks of of intial incident.
“Thankfully we were properly insured and everything worked out well, considering our original concern,” said Theresa.
“But that report on inadquate cover has persuaded us to check our policy - and the premiums will certainly be increased, if necessary.”
GET IT COVERED
AN official report has indicated that the vast majority of home- owners are under-insured. Typical home insurance policy includes as insured “events:
- Fire, explosion, lightning - and earthquake
- Smoke
- Storm or flood
- Falling trees or branches
- Falling aerials, masts or satellite dishes
- Impact with buildings by aircraft, aerial device, train, or anything
falling from them, as well as an animal or vehicle
- Subsidence or landslip
- Escape of water from pipes or household installations
- Riot, civil commotion, labour or political distrubances, strikes, vandalism or malicious acts
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