New research from Bank of Ireland is highlighting common home insurance mistakes that could leave homeowners underinsured.
Figures show that almost one third of homeowners have upgraded their homes in the past three years, with improvements such as insulation and solar panels becoming more common. However, 61% of those who carried out upgrades did not inform their insurer, which could leave them without adequate cover or missing out on savings.
The research also found that almost one in four homeowners do not fully understand what underinsurance means, where the level of cover is lower than the cost of repairing or replacing a property and its contents.
With severe weather events becoming more frequent, more than half of homeowners now list storm damage as one of their main concerns. Despite this, only 40% of people say they review their policy in detail before renewing, while almost half admit they simply renew if the price suits them.
Jewellery was identified as the most valued item in the home, followed by technology, furniture and mobile phones.
Niall Moran, Head of Sales, Bank of Ireland Insurance Services, said: “Many customers are investing in upgrades such as heating systems, energy efficiency improvements and security features, but too often these changes aren’t reflected in their policies – meaning some are missing out on potential cost savings.
“Our message is simple: always review your policy before you renew. Check your sums insured, declare any upgrades and ensure your cover reflects the true value of your home and contents. We are committed to providing clear guidance and practical support to help customers protect their homes.
“At Bank of Ireland we provide up to 20% off insurance premiums for Ecosaver Mortgage customers who are making sustainable improvements to their homes – so you’re improving the environment and saving money at the same time.”
Bank of Ireland is advising homeowners to carefully review their insurance renewal each year, ensure their buildings and contents cover reflects any upgrades, and notify their insurer as soon as possible if they need to make a claim.
