Home insurance isn’t the most exciting thing to spend money on, but it’s one of those essential costs of owning a property. Whether you’re a first-time buyer settling into your new home or a seasoned homeowner trying to keep monthly bills down, there’s a good chance you’re overpaying for your policy — and not even realizing it. If you’ve been wondering how to save money on home insurance without sacrificing protection, these expert insights will help.
To help demystify what you should be paying, and how to cut the fat from your policy without compromising on cover, we sat down with James O’Connell, a financial advisor and insurance expert with over 15 years in the Irish market. Here’s what we learned.
What Should You Expect to Pay?
Let’s start with the basics: what does a standard home insurance policy actually cost?
“On average, for a typical three-bed semi-detached home in Ireland, you’re looking at between €300 and €600 per year for combined buildings and contents cover,” says James. “That price can go up or down depending on several factors, like the rebuild cost of your home, the location, and the value of the contents you want to insure.”
He’s quick to point out that many people confuse the market value of their home with the rebuild value, and that can lead to over-insuring and overpaying.
“If your house is worth €400,000 but it would only cost €250,000 to rebuild, you should be insuring it for €250,000 — not the full market value. You’re not insuring the land, just the structure.”
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Why You Might Be Paying Too Much
There are several reasons your premium might be higher than it needs to be. Some of the most common include:
1. Overestimating Rebuild Costs
As mentioned, this is a major one. Using out-of-date or inaccurate rebuild costs can lead to inflated premiums. The Society of Chartered Surveyors Ireland (SCSI) provides a free Rebuild Cost Calculator online to help homeowners get an accurate figure.
2. Duplicated Cover
“People often don’t realize that they’re double-covered,” James tells us. “For instance, if you have a separate gadget insurance policy or travel insurance that covers your valuables abroad, you might not need as high a contents cover limit at home.”
3. High-Risk Features
Things like wood-burning stoves, flat roofs, or being in a flood-prone area can also bump up your costs. While you can’t always change these, being aware of their impact helps when shopping around.
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4. Low Excess
A lower deductible (the amount you pay out of pocket when making a claim) usually means a higher premium. “Some people want a $0 excess,” James says, “but that could push your premium up by 20-30%. If you’re unlikely to claim for small things, increasing your excess can bring the cost down.”
5. Automatic Renewals
According to James, one of the biggest traps is simply letting your policy roll over each year. “Insurers count on customers not questioning their renewal quote. Often, premiums go up gradually over time without a real justification.”
How to Bring Down Your Home Insurance Costs
Luckily, there are plenty of ways to save money on your policy without reducing your level of protection. Here’s what James recommends:
1. Shop Around Every Year
“It’s not enough to check two or three providers,” James insists. “Use comparison websites, but also call a broker. Sometimes they have access to rates not listed online.”
He also advises checking with your bank or mortgage provider. They sometimes offer preferential rates to customers, though you’re not required to use them, even if you have a mortgage with them.
2. Increase Your Excess (But Only If You Can Afford It)
As mentioned earlier, increasing your deductible can lower your premium. “If you’re comfortable covering a €500 or €1,000 excess in the event of a claim, the savings on your premium can be significant.”
3. Install Security Features
Alarms, smoke detectors, CCTV, and monitored security systems can all help reduce your premium. “Some insurers offer discounts of 10% or more for monitored alarms,” says James.
4. Bundle Your Policies
Many insurers will offer a discount if you take out multiple policies with them, such as car and home insurance. “Bundling can be worth doing — but always compare what the total cost would be if you kept them separate,” he cautions.
5. Avoid Over-Insuring Contents
Make a detailed home inventory and try to value your possessions realistically. “Most people don’t own $100,000 worth of stuff,” James says with a smile. “But they tick the highest box just to be safe.”
You can download free inventory apps or use a spreadsheet to tally up your belongings. This can also come in handy if you ever need to make a claim.
6. Review Annually
Don’t set and forget. “Life changes. You might renovate, or downsize, or get rid of high-value items. Make a habit of reviewing your policy every year.”
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Bonus Tip: Don’t Confuse Buildings with Contents Insurance
James notes that many homeowners, particularly first-time buyers, don’t realize the distinction between buildings and contents insurance.
“Buildings insurance covers the structure of your home — the bricks and mortar. Contents insurance covers your belongings. You need both, but it’s important to know what’s included in each.”
Some mortgage lenders will require buildings insurance as a condition of your loan, but you’re free to choose your provider. Don’t assume you need to take out insurance with your bank just because they issued your mortgage.
The Bottom Line
Home insurance doesn’t need to cost a fortune, and in many cases, it shouldn’t. Understanding your policy and applying these strategies will help you figure out how to save money on home insurance while keeping the right level of protection.
As James sums it up: “The key is to stay informed, don’t blindly renew, and make sure your policy reflects your actual needs — not the worst-case scenario dreamed up by a sales rep.”
Saving money isn’t just about paying less; it’s about getting good value for the right cover — something every homeowner can benefit from.
