The Essential Home Insurance Guide for Irish Homeowners

March 2026

Securing the right home insurance policy is an essential step in buying a new home in Ireland. Home insurance protects your investment and is often required by mortgage lenders. This guide will explore the rules, types of cover available, and tips to help new homeowners navigate their home insurance options.

Home insurance itself is not legally mandatory in Ireland. However, if you’re taking out a mortgage to purchase your home, your lender will require you to have building insurance before drawing down the loan. This ensures that the property—the collateral for the loan— is protected against damages such as fire and storm.

Building and Contents: Allianz offers Building and Contents – which includes:  

• Cover for damages to the buildings  
• Cover for damages to the contents  
• Emergency Home Assistance with up to four callouts  
• Liability as a homeowner up to €3,000,000  
• Fire brigade charges up to €3,000  

Building and Contents: All the same level of cover as Building and Contents – with the addition of: 

• Cover for accidental damage

It’s crucial to arrange your home insurance policy in advance of closing the sale with the policy to take effect from the planned signing date. Your mortgage provider will require proof of insurance before funds are released. Ensure you start researching insurance providers early in the purchasing process to avoid delays.

Buildings insurance typically covers the following:  

• Damage from natural events like storms, floods, and lightning  
• Fire damage  
• Theft or vandalism  
• Burst pipes and other water damage  
• Subsidence (depending on the policy)

It’s essential to check the specifics of your policy, as coverage can vary, especially when it comes to home insurance for flood risk areas. For example, some policies might exclude flood or subsidence damage if the property is in a high-risk zone, so always ensure your policy matches the risks associated with your location.

One of the most critical aspects of buildings insurance is determining the rebuild cost of your home. This is not the market value of the property but the amount it would take to rebuild your house from scratch. You can use the Society of Chartered Surveyors Ireland (SCSI) online calculator to estimate this cost, or a professional surveyor can provide a precise figure.  

If you’re upgrading, extending, or making structural changes, it’s important to review your house insurance while renovating.

New-Build Properties: If you’re buying a newly built home, it may come with a HomeBond guarantee, which covers certain structural defects for up to 10 years. However, this is not a replacement for home insurance, and you’ll still need to arrange a separate policy.  

Contents Insurance for New Homeowners: Consider adding contents insurance to protect your personal belongings once you move in. Many new homeowners invest in electronics and furniture for their new property, making contents insurance a valuable addition.

Personal Liability: Standard on Allianz policies, which can protect you if someone is injured on your property.

In the unfortunate event of a claim, it’s essential to act quickly. Contact us as soon as possible. We'll talk you through what happens next and depending on the loss we will immediately appoint a loss adjuster to assess the damage.   

• Document the damage with photos and notes.  
• Report the incident to your insurer as soon as possible. Will talk you through what happens next and depending on the loss we will immediately appoint a loss adjuster to assess the damage.   
• Allianz has an emergency assist line if customers need emergency access to tradespeople.   
• Keep records of any temporary repairs or emergency expenses, as these might be reimbursable.  

While home insurance is not legally mandatory in Ireland, it is essential for anyone with a mortgage. By understanding the types of coverage available and tailoring your policy to meet your needs, you can protect your new home and belongings.   

Here is a practical checklist of the exact insurance documents your lender will require for mortgage drawdown in 2026.

Lenders in Ireland are strict about paperwork. To avoid delays, ensure you have these three specific documents ready to send to your solicitor or bank 4–6 weeks before your closing date. 

Home Insurance Letter of Indemnity 

This is the most critical document for your bank. It is a specific letter from your insurer (like Allianz) that "notes the interest" of your mortgage lender on the policy. 

What it must show: Your lender’s name (e.g., AIB, Bank of Ireland, PTSB), the full address of the new property, and a "Sum Insured" that meets or exceeds the rebuild cost specified in your valuation report. 

Pro-Tip: If you buy your policy with Allianz, this letter is automatically included in your policy pack. 

Mortgage Protection Policy (Life Cover) 

By law, lenders require you to have life insurance that would pay off the mortgage if you were to pass away. 

The 2026 Check: Ensure the policy covers 102% of the loan amount (standard for many Irish lenders) and that the term of the policy matches or exceeds your mortgage term (e.g., 30 years). 

Timing: Don't leave this until the last minute—if a medical report is required, it can take 2–4 weeks to process. 

Current Valuation Report 

Your lender will only drawdown the funds if they have a valuation report that is less than 4 months old. 

The Insurance Link: The "Minimum Rebuild Cost" listed by the valuer in this report must match the amount you have insured the building for on your home insurance policy.

Your policy should ideally start on the day you sign the contracts. At this point, you become legally responsible for the property. Your mortgage lender will not release the funds (drawdown) until they have a letter of indemnity from your insurer confirming the house is covered.

Standard Building and Contents policies cover "perils" like fire and storm. Accidental Damage (e.g., spilling wine on a carpet or putting a foot through a ceiling while in the attic) is typically an optional extra or included in "Premium" tiers.

Yes, but terms may vary. Insurers use granular mapping to assess risk. If you are in a high-risk zone, you may have a higher "flood excess" or, in rare cases, flood cover might be excluded. It is vital to check your policy schedule for these specific terms.

No. HomeBond is a structural latent defects insurance (usually for 10 years). It covers major structural issues caused by poor construction. It does not cover fire, theft, storm damage, or your personal belongings—those require a standard home insurance policy.

Allianz p.l.c. is regulated by the Central Bank of Ireland.  Standard acceptance criteria, terms and conditions apply.   

This guidance is for general information purposes only. Allianz accepts no responsibility or liability for any losses that may arise from any reliance upon the information contained in this guidance.  

Information is correct as at 20/03/2026.