Susan Robertson

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Susan Robertson Consumer Information 11 April 2008
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Home Insurance
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What does home insurance cover?

• House insurance covers the following
• Buildings insurance damage to buildings
• Contents insurance - damage to contents
• All-risks cover loss or damage to valuables
• Liability insurance injury to others in or
  around your home, damage to other peoples
  property.

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Buildings insurance

• This covers
• The main structure of your home and domestic
  outbuildings.
• Permanent fixtures to your home, for example,
  fitted kitchen, bathroom, floors, etc.
• i.e. whatever you cant take with you when you
  move.

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How much should I insure the buildings for?

• You insure your home for the amount of money it
  would cost to rebuild it, i.e. the reinstatement
  value. This is not the same as the market value
  of the property.
• A rough estimate of the reinstatement value is
  available on www.scs.ie, the Society of Chartered
  Surveyors. Guide to House Rebuilding Insurance.
• Most insurers will have a minimum reinstatement
  value that they will insure for, e.g. 100,000.
• Subject to average if you are underinsured
  your claim will be reduced in proportion to the
  underinsurance.
• If you insure for too much, you will not receive
  an increased benefit.

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What is usually covered by buildings insurance?

• Damage caused by
• Fire, explosion, lightning or earthquake
• Flooding, storm and subsidence, with some
  restrictions
• Riot, vandalism, or other violent acts
• Burglary or attempted burglary that results in
  property damage
• Water or oil escaping from a fixed appliance such
  as a water tank
• Vehicles, animals, etc, damaging buildings,
  walls, fences, etc
• Falling trees and branches.

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What is usually not included in buildings
insurance?

• Damage caused by
• Storms affecting gates and fences
• Flooding or subsidence if your home is in an area
  where this is likely to happen
• Acts of terrorism
• Wear and tear in the structure or the inside of
  the property
• Any claim that is less than the excess.

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What is the excess?

• The excess is the amount of the claim that you
  will have to pay yourself. Normally between
  100-500.

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What is indexation?

• Many insurers automatically increase the amount
  insured each year on renewal. This makes sure
  that the insured amount keeps up with inflation.
• You should still keep an eye on the insured
  amount to make sure that you are not over or
  under insured.

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Contents insurance

• This can be a separate policy to your buildings
  insurance or a combined policy with your
  buildings insurance.
• This includes items that you will take with you
  when you leave the house, e.g. furniture, etc.
  Also fitted carpets.

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How much do I insure my contents for?

• You should insure your contents for the figure it
  would cost to replace them.
• Use our contents checklist in our Home Insurance
  made easy guide.
• There may be a minimum amount you can insure your
  contents for.

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What is usually covered?

• Loss or damage to items on a new for old basis.
  
• Accidental damage to household equipment may be
  a higher premium.
• Loss or damage to items you temporarily remove
  from the house does not include glass or
  fragile items.
• Food that has spoiled in the freezer or fridge
  due to break down or power cut.
• Cash stolen from your home, up to a limit.

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What is normally not covered?

• Any loss or damage that happens when you have
  left your house empty more than a set no. of
  days,e.g. 30 days.
• Money or valuables stolen from your home when not
  secured.
• Deeds, bonds, bills of exchange, promissory
  notes, cheques, stamps, any documents,
  manuscripts, medals and coins.
• Motor vehicles and accessories.
• Damage caused by wear and tear.

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All risks cover

• This covers specific items listed by you. These
  are normally valuable items, e.g. jewellery, golf
  clubs, etc.
• Or you can take out cover for unspecified items.
• There may be an upper limit on the value you can
  insure an item for.
• Items taken abroad will be covered under all
  risks up to a certain time limit.

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Liability Insurance

• Included in most policies.
• Covers costs, fees and expenses that you are
  legally liable for if a 3rd party can prove that
  you were at fault, e.g. someone on your property
  gets ill, has an accident, is injured or dies.
  Plus accidental damage you cause to someone
  elses belongings.
• Does not cover accidents that happen to members
  of your family and damage that you cause to your
  property.

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What can affect my premium?

• The amount you insure your house for.
• The amount of contents insurance.
• Where your property is located.
• The type of cover you want.
• Any discounts. (up to a max. total)

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(No Transcript)
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My home is a 4 bed detached house in County
Clare. The rebuilding cost is 245,000 and the
contents are worth 55,000- online survey

• Age of property 20 years
• Is the area liable to flooding? -- No
• Is the area prone to subsidence?-- No
• Previous claim?Yes in 2002 for burglary 6,000
• Age of applicant 40 years
• IS199 burglar alarm?-- Yes
• Neighbourhood watch?-- No
• Security locks on doors windows?-- No
• All risks (unspecified items)?-- None

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Quoted premiums as at 12/10/07
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How to make a claim

• Contact your insurer or broker as soon as
  possible.
• Give brief details of incident and request a
  claim form.
• You will be told what to do next.
• You can hire an assessor works on your behalf
  and negotiates with the insurer to settle your
  claim. Different to a loss adjustor.

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Why would a claim be refused?

• Common reasons include
• Damage claimed for is not covered
• You failed to meet all the policy conditions
• Damage caused by wear and tear
• In some cases a burglary claim may be refused if
  the alarm was not on when there was no one home.
• The insurer or broker must advise you in writing
  that the claim has been refused and also why it
  was refused.

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What is the average cause?

• This is when your claim is reduced because you
  were underinsured.
• For example, you insure your contents for 20,000
  but they are worth 40,000. All the contents are
  destroyed and you make a claim you will only
  receive 20,000. In the same case if 25 of your
  contents are destroyed and you claim for 10,000
  you will only receive 5,000 50 of the claim
  because you were 50 underinsured.

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To find out more, read

• Our guide, Home insurance made easy
• Our Home Insurance Cost Survey
• Log onto www.financialregulator.ie
• Log onto www.scs.ie
• Log onto www.iif.ie.

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Consumer Contact Detailswww.itsyourmoney.ieCo
nsumer Helpline 1890 77 77 77consumerinfo_at_ifsra.i
eInformation Centre, 6/8 College Green, Dublin
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Thank you

• Any questions?