There are so many aspects to completing your house purchase and it is a really busy and expensive time. However, you will need to give a thought to some essential areas of insurance cover so that you and your new investment are protected should things go wrong.

Your new home will need to be covered and your lender may also require you to have certain insurance cover in place in order to secure your mortgage. 

As well as home insurance, there are several other types of insurance that will give you peace of mind that you will be able to pay your mortgage and protect your home and possessions, should the need arise.

buying a home and insurance

Home Insurance

You will want to protect your investment and have insurance cover should you need to repair or rebuild your home, or replace your possessions. Home insurance will protect your home from events such as weather events, burst pipes, fire, or break-ins.

You may have had tenants home insurance already which covered your personal belongings in your rented home. Owner occupier home insurance typically includes two types of cover.

  • Buildings insurance
  • Contents insurance

Buildings Insurance

If you are buying a house with a mortgage your lender will require you to have a minimum level of buildings insurance. Even if you don’t have a mortgage, it is still wise to have this cover in place.

Buildings insurance is financial protection should you need to repair or rebuild your home following an insured event.

The amount of buildings cover you need depends on the rebuild value of your house. This is different to the market or purchase value of the house and is the amount that it would cost to rebuild the physical building should it be damaged or destroyed. 

If your home is of non-standard construction or is a listed or period building or a protected structure then you may need to arrange specialised non- standard home insurance.

Contents Insurance

This type of insurance cover offers financial protection should the contents of your home be damaged or destroyed in an insured event. The contents of your home are the items that you could take if you moved house as opposed to the fabric of the house or permanent fixtures and fittings, for example, electrical appliances, furniture, or clothes.

It is essential to adequately assess the value of your possessions should they need to be replaced, your home contents may have more value than you realise when you add it all up.

If you have any single, valuable items such as jewellery, sports equipment, or electronics, you may need to arrange specific cover with your home insurer. If you need cover for these items when you are outside your home you will need ‘all risks’ cover.

Unoccupied homes

It is also worth mentioning that if your new home is to be unoccupied for some time, or empty while you renovate it prior to moving in, then you may need non standard home insurance or self build insurance until you are ready to move in. Self build insurance offers protection for unoccupied homes and building sites while your home is in the process of construction or renovation.

Contents Insurance Quote

Liberty - Home Insurance

Liberty Insurance, First time buyers buildings and contents insurance, 3 bed semi detached house of standard construction. Contents cover €35,000.

€697.56

Mortgage Protection

Mortgage protection is insurance cover which, essentially, pays off your mortgage should you die during the term of the policy. Generally, the term of the policy is the same as the term of the mortgage and the amount of cover declines as your mortgage is paid off.

Most banks and lenders will require you to have mortgage protection in place before you can draw down your mortgage.

It is a relatively simple and affordable form of insurance but will offer you valuable peace of mind that your loved ones will be secure in their home should the worst happen.

Mortgage Protection Quote

Aviva - Home Insurance

Mortgage protection for mortgage of €310,000 for 25 years for a couple aged 37 and 36, both non smokers. 

Aviva €31.52 per month.

Protection requirements for Irish Banks

Banks will not require you to have mortgage protection if you already have life insurance in place or if you are unable to obtain cover, or are over 50.

Life insurance also offers financial protection should you die but is a slightly different insurance product, usually offering higher levels of protection than mortgage protection. In a sense, mortgage protection offers protection for your mortgage whereas life insurance offers protection for yourself and your dependants, although you can use the lump sum provided by life insurance to pay off your mortgage should you choose to do so.

Life Insurance

If you have not already done so, it is really worth looking at taking out life insurance when you buy a home. Life insurance offers a cash lump sum should you die, either during the term of the policy or in the case of whole of life insurance whenever you die.

The benefit received from life insurance can be used to pay off a mortgage, clear outstanding debts, or to replace your income should you die. It is a really valuable form of protection and may not be as expensive as you think. 

Personal situations which affect your cover

Your personal situation, such as your income, levels of debt, and ages of your dependents, will all affect the appropriate level of life insurance for you. You can arrange life insurance to cover the life of the policyholder only (single life), the life of two policyholders (joint or dual life), depending on your circumstances.

Life Insurance Quote

Life insurance amount €310,000 for 25 years for a couple aged 37 and 36, both non smokers

New Ireland €40.22

Specified Illness Cover

You can bundle life insurance with specified illness cover or purchase a stand alone specified illness insurance policy, also known as critical illness insurance. 

This form of insurance pays a lump sum should you be diagnosed with one of your insurer’s list of specified serious illnesses. 

This will replace lost income while you receive treatment and recover from your illness and could be used to cover mortgage payments while you are ill, giving you peace of mind that your home will be secure.

Specified Illness Cover Quote

Zurich - Home Insurance

Life insurance amount €310,000 for 25 years for a couple aged 37 and 36, both non smokers, including specified illness cover of €30,000.

Zurich  €72.78

Income Protection

Income protection will offer up to 75% of your income in regular monthly payments should you be unable to work due to illness, injury, or disability. 

It may complement any illness benefit you receive from your employer or offer protection where you have little employer protection should you be unable to work or if you are self employed.

This form of insurance cover is really valuable in allowing you to continue paying your mortgage if you are unable to work, allowing you to remain in your home and focus on your recovery even though you are unable to work due to illness, injury, or disability.

Income Protection Quote

37 year old non smoker who earns €60,000, insures €32,000 of their income from 26 weeks until age 60.

Royal london €76.77 guaranteed cover (€46.06 after tax).

Get the lowest premiums by comparing all the policies in the Irish market

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