Homeowners in some counties could be paying close to €10,000 more for their home insurance over the lifetime of their mortgage because of where they live.
Homeowners in Roscommon are paying over €300 a year more for their home insurance compared to those in Carlow. That’s according to new research by Peopl. Insurance.
And even within the same county, there can be big differences in the cost of a typical home insurance policy.
As home insurance is a requirement for those taking out a mortgage, it means that over a standard 30-year mortgage term, some homeowners will end up paying close to €10,000 more than those in nearby counties.
But why is this the case and what can homeowners do about it?
The 'address penalty'
When calculating the cost of your home insurance, insurers take many things into account. This includes the size of your home and how much it would cost to rebuild, the age of your home, and also the type of construction e.g. a flat roof versus a pitched roof or a timber-framed home versus a concrete one.
Your no-claims bonus and the size of your excess are factored in too.
But something else that has a big bearing on the cost of your home insurance is where you live. And the difference or ‘address penalty’ for some homeowners can be pretty staggering.
For example it costs over €800 to ensure a standard three-bed semi-D in Roscommon but less than €500 in Carlow - a staggering 62% difference.
Here’s why…
Why your address impacts your home insurance premium
If you're in an area that’s prone to flooding or subsidence you’ll generally be charged more for your home insurance as you’re at greater risk of making a claim. Indeed homes in Roscommon are the most at risk of subsidence in the country according to Gamma, a location intelligence software and services provider.
And if you’re in an area where crime and break-ins are higher, this will impact your premium too. According to the research, homeowners in Tallaght in Dublin pay €82 a year more for insurance than those living only a few kilometres down the road in Dundrum for example.
And if you live in a more rural area, far from the nearest fire brigade or emergency services, this can impact negatively on your premium too.
It may seem like a harsh reality but the location of a property has a huge bearing on the cost of insuring it and this is borne out by our analysis. Insurers take the address into account when determining the risk profile of a property – and in turn, the premium they will charge.
Dominic Lumsden, spokesperson for Peopl Insurance
Here’s a look at what home insurance costs in select counties across the country.
| County | Cost* |
| Roscommon | €801 |
| Sligo | €657 |
| Westmeath | €634 |
| Tallaght Dublin 24 | €614 |
| Shankill Co Dublin | €539 |
| Dalkey Co Dublin | €537 |
| Dundrum Dublin 14 | €532 |
| Kilkenny |
€515 |
| Carlow | €493 |
*Quote is for a first-time buyer getting home insurance for a three-bed semi-detached house with two bathrooms, which has a rebuild cost of €400,000 and €30,000 worth of contents cover.
How can I reduce the cost of my home insurance?
Thankfully there are a few ways you can reduce the cost of your home insurance that don’t involve you having to up sticks and move to another county!
1. Make yourself a safer bet
Insurance is all about risk. If you can make yourself look less risky to your insurer, then you can bring down the cost of your premium.
If you haven’t already, consider getting a monitored burglary alarm and deadlocks for your external windows and doors. And it goes without saying that you should always have a good fire alarm no matter where you live.
2. Increase your excess
The excess is the amount you have to pay first in the event of a claim.
The standard excess for a home insurance policy is usually between €200 and €500 - though higher for water damage and subsidence claims.
Generally speaking, if your excess is low you’ll pay a higher premium, but if your excess is higher your premium will be lower.
3. Make sure you’re not over insured
While underinsurance is an increasingly common problem, it’s important to ensure you’re not over insured either.
You only need to ensure your house for its rebuild value. Not its sale value, which will usually be higher.
While most insurers will have their own house rebuild calculators, you can always head over to the SCSI’s site and use theirs which will tell you what the estimated cost is based on your house type, square footage and location.
4. Shop around
While this is good advice for all bills, it’s really important for things like home insurance (and indeed car insurance).
Different insurers will price risk slightly differently. So while you might look uninsurable to one insurer, or only be insurable at a high cost, another may be prepared to take on the risk at a slightly more affordable price.
5. Use a broker
A broker can get you a quote from a range of different insurers. As a result they’re more likely to be able to get you a better deal. Using a broker is also good if you’re struggling to get affordable home insurance in the first place as they’ll be able to talk to more insurers.
Get home insurance on bonkers.ie
You can now quickly and easily get home insurance right here on bonkers.ie!
No matter where you live you could cut the cost of your home insurance in just a few minutes, without affecting your level of cover. Head over to our home insurance page to receive a discounted quote in just minutes and see how much you could save.
Our award winning home insurance service is fully online, meaning you don’t have to deal with any paperwork. But should you need assistance at any point in the application process, our insurance advisors will be on hand to help.
