Congratulations! You’re moving into your first home. As part of your planning and preparations, it’s important to protect your new investment.
For many first-time buyers, home insurance can raise several questions; what cover you need, when to arrange it, how much to insure your home for, and what’s included as standard. Securing the right home insurance policy is an essential step when buying a new home and understanding how it works can help you make informed decisions.
While this guide focuses on insuring a first home generally, buyers of newly built properties may have different considerations when it comes to insuring their home, such as structural guarantees and construction-related cover.
In Ireland, mortgage lenders require buildings insurance before releasing funds. Beyond this requirement, home insurance protects you from unexpected costs such as fire, flood, theft or storm damage, depending on the level of cover you choose.
This guide is designed to answer the most common questions first-time buyers have about home insurance, helping you understand your options and choose cover that suits your needs.
Home Insurance Basics for First-Time Buyers
Home insurance provides three core benefits for first-time homeowners:
- Protection for the structure of your home and your belongings (if contents insurance is included) in the event of a loss
- Liability protection if a visitor is injured on your property and you are found legally liable
- Practical support, with many policies offering access to 24/7 helplines and emergency assistance add-ons
When selecting a policy, it’s important to consider the scope of cover, sums insured, excess, exclusions, endorsements and service quality. Premiums are influenced by factors such as rebuilding costs, your property’s risk profile and your claims history. Comparing policies on both cover and price can help you find the most appropriate option and value.
Is Home Insurance Mandatory in Ireland?
Home insurance is not legally mandatory in Ireland. However, if you are purchasing your home with a mortgage, your lender will require buildings insurance to be in place before releasing funds.
This ensures the property is protected from the moment you take ownership and is a standard requirement across Irish mortgage providers.
When Should First-Time Buyers Arrange Home Insurance?
You should arrange your home insurance before closing on your property, with cover starting on the date contracts are completed or the mortgage is drawn down.
Most insurers allow you to set a future start date, helping to align your cover with your completion date and avoid delays in releasing mortgage funds.
What Is the Difference Between Buildings and Contents Insurance?
Buildings Insurance
Buildings insurance covers the physical structure of your home, including walls, roof, floors and permanent fixtures such as fitted kitchens and bathrooms. Some policies also extend cover to outbuildings, gates and fences.
If your home is damaged by events such as fire or storm, buildings insurance covers the cost of repairs or rebuilding. This cover is based on the rebuild cost, which is the amount required to reconstruct your home from the ground up. It includes labour, materials, professional fees and debris removal.
Contents Insurance
Contents insurance protects the things you own, such as furniture, electronics, clothing and valuables, against risks like fire, theft and accidental damage.
While contents insurance is optional, it is strongly recommended. In the event of a serious incident such as flooding, contents cover helps prevent the cost from falling entirely on you.
Pro tip: For most first-time buyers, a combined buildings and contents policy offers greater convenience and better value.
How Much Should I Insure My Home for?
The correct buildings insurance amount is based on the rebuild cost, not the market value of your home.
This should take account of construction costs, labour, professional fees, site clearance, debris removal, outbuildings and permanent fixtures. Rebuild costs should be reviewed regularly, particularly if you renovate or extend your home.
Tools such as the Society of Chartered Surveyors Ireland (SCSI) rebuild cost calculator or a professional valuation can help ensure accuracy.
Avoiding Underinsurance
Being underinsured is a common issue and can significantly reduce the amount paid out if you need to make a claim.
Insurers may apply an average clause, which allows them to reduce claim payments in proportion to how underinsured the property or contents are even for partial losses. Taking time to correctly set your sums insured can help avoid unexpected shortfalls.
What Information Do Insurers Need for a Quote?
To provide a home insurance quote, insurers typically ask for:
- The property address and eircode
- The year the property was built
- Construction details (walls and roof type)
- Security features such as alarms and locks
- Details of any previous claims
- The building sum and contents sum insured
Providing accurate information is essential to ensure your cover is valid and claims are not delayed or declined.
What Is the Policy Excess and Why Does It Matter?
The excess is the amount you pay yourself if you make a claim. Choosing a higher excess can reduce your premium, but it should remain affordable in the event of a claim. A balanced approach can help manage costs without increasing financial stress.
What Happens If I Need to Make a Claim?
If you need to make a home insurance claim, acting promptly and following the correct steps can help the process run smoothly.
Notify Your Insurer as Soon as Possible
You should contact your insurer or broker as soon as you become aware of a loss or damage. Many policies require claims to be reported within a specific timeframe.
Document the Damage
Where it is safe to do so, take photographs or videos of the damage and keep any relevant records or receipts.
Prevent Further Damage
You are generally expected to take reasonable steps to prevent further loss, such as arranging temporary repairs. Keep records of any emergency costs, as these may be covered under your policy.
If you use a broker, they can act as an intermediary during the claims process, helping you understand what is covered and supporting you through each stage.
Is Flood Cover Automatically Included?
Flood cover is often included in home insurance policies, but not always. Terms can vary depending on your home’s location and flood history.
If you are buying near a river, coastline or in an area with previous flooding issues, it’s important to check what is included before selecting a policy.
How Often Should I Review My Policy?
You should review your home insurance policy annually and after any material changes, such as renovations, extensions or the purchase of high-value items.
Since July 2022, the Central Bank of Ireland has banned price walking, meaning insurers cannot charge higher premiums simply because a customer renews. However, regular reviews ensure your cover remains appropriate and up to date.
Insuring Your First Home: A Checklist
Before choosing your policy, it’s worth slowing down and completing a few important checks to ensure you’re getting the right cover at the right price:
- Compare quotes: Compare at least three providers, reviewing price, cover, limits and any additional benefits.
- Read the small print: Carefully review exclusions, conditions, limits on high-value items and accidental damage rules.
- Double-check your property details: Ensure all information provided is accurate. Incorrect details can result in rejected claims.
- Set adequate building and contents cover: Underinsurance is common and can significantly reduce claim payouts. Taking time to correctly set your sums insured can save considerable cost later.
If you are unclear on any aspect of a policy, consult your insurer or broker. You are entitled to clear, easy-to-understand information.
Home Insurance for Your First Home Made Easy
As a first-time homeowner, choosing the right home insurance doesn’t need to be daunting.
If you’re unsure about your next step or would like guidance on what cover makes the most sense for you, our team is here to listen, guide and help you put the right protection in place.