Underinsurance is where your “sums insured” are too low and may not reflect the costs of repairing or rebuilding your home at today’s rates. It is easy to get confused between market value and rebuild cost (“sums insured”) of your home when it comes to insurance. The market value is the price an estate agent would place on your home if you put it up for sale. This is often different to what the cost is to repair or rebuild your home should it get damaged due to a fire or storm for example, this is your “sums insured”.

Within your home insurance policy, one of the terms and conditions is called “Average Clause” and this applies if you are underinsured. This means that if your “sums insured” at the time of a claim are less than the cost of rebuilding your home, the amount paid out if you have a claim may be reduced. To demonstrate how “Average Clause” may impact a claim here are examples we have:

Average- Example of Partial Loss

• Jack and Jill take out insurance on their home with Buildings sums insured of €350,000. A leak in the property causes €100,000 worth of damage.  
• During the claims investigation, it comes to light that the correct rebuild cost is €500,000. 
• As the property is underinsured, “Average Clause” is applied to the claim and Jack and Jill are advised that the claims payment will be reduced. See calculation below.

Claims settlement:

€350,000 (Sum Insured) X €100,000 =  €70,000 (Claims Payment)

€500,000 (Rebuild Cost)

• The reduction due to underinsurance is 30% in this case. As a result, the maximum payment Jack and Jill will receive is €70,000

The amount you have your home insured for, the “sums insured”, should reflect the cost of rebuilding your home, including fixtures and fittings, domestic outbuildings, cost of professional fees and site clearance. The “sums insured” is the maximum amount that we will pay in respect of a claim.

You should regularly review your “sums insured” and policy schedule to ensure that they are at the correct level to avoid underinsurance.

Society of Chartered Surveyors Ireland 

The Society of Chartered Surveyors Ireland have a calculator on their website which you can use for guidance when calculating the rebuilding value (“sums insured”) of your home, https://scsi.ie/consumer/build/calculator/. Please note that this is for guidance purposes only and the rebuilding rates are for estate-type homes and should not be used for other house styles such as one off homes or period properties. For these types of homes a survey may be required.

Survey

You may wish, at your own expense, to get a rebuilding valuation from a professional surveyor, builder or architect to establish the appropriate “sums insured” for your home. Remember, this is different to a valuation from an estate agent who would provide the sale price of your home.

In order to help reduce the risk of you being underinsured, we adjust your “sums insured” in line with inflation at your renewal date to help you to ensure you are adequately protected, this is known as indexation. While we apply indexation to safeguard you from underinsurance, we only increase your “sums insured” in line with inflation, and we remind you of your obligation to review your “sums insured” to make sure they are appropriate for your home.

The amount you insure your contents for should be based on the cost of replacing the contents ‘as new’ at today's prices, and should cover everything that you would take with you if you moved house. The contents should cover all items within the home and domestic outbuildings. If cover is needed for items away from the home e.g. jewellery, All Risks cover must be selected. Refer to the All Risks Cover section of the Household Policy Document for full details and the section on what is “All Risks” cover below.

Regardless of when your renewal date is, we recommend that you review your “sums insured” regularly to ensure they are up to date and reflect today’s cost to rebuild your home. Once you have reviewed your “sums insured”, there are two ways to update your details:

 

•  If you are a registered MyAllianz just log into account where you can update your details
  

Or

• Call us on 01-448 48 48 and our staff will be happy to assist, our phone lines are open Monday to Friday 8am – 6pm and on Saturdays from 9am – 1pm
  

Your Household policy will protect you from many natural, accidental or malicious events . Here is an overview of
some of the situations covered by our Household policy:

• Loss or damage by fire, theft, flood, explosion, storm, and lightning
• Loss or damage by smoke if there is faulty operation of any oil, gas, electric domestic heaters or domestic
  cooking appliances within the buildings
• Loss or damage due to the escape of water from within any plumbing or heating system, fixed water
  appliance or domestic appliance
• Loss or damage caused by vandalism or malicious damage

For full details of covers, exclusions, terms, conditions and limitations please refer to the Household Policy Document.

We provide cover for properties occupied as family homes, holiday homes or which are let to tenants.

As a guide, Buildings include:

• The structure of your home
• Built-in wardrobes
• Fitted kitchens
• Wooden floors
• Garage and domestic outbuildings
• Walls, gates and fences
• Patios

As a guide Contents include:

• Household goods
• Clothing
• Furniture and furnishings
• Personal effects

For the full definition of Buildings and Contents please refer to our Household Policy Document.

 More on Contents (Renters) Insurance

 

An excess is the first amount of any loss that you are responsible for paying in the event of making a claim. This
amount is deducted from the total claim settlement figure.

Our standard excess for household claims is €250. Note that the excess for all freezing, escape or overflow of water
from within any plumbing or heating system, fixed water apparatus or fixed domestic appliance claims will be €250
greater than the excess you have selected. The excess for all subsidence or heave of the site on which the private
house stands or landslip claims is €650. If you select a higher voluntary excess, you may reduce your premium (applies
to most products except for Landlord properties). Please refer to your schedule of insurance, policy booklet, or contact
us directly if you wish to query this amount.

Under the Buildings section of your policy, cover is provided for the following types of domestic outbuildings:

• Garages
• Garden Sheds (used to store fuel, garden implements, children's toys, etc.)
• Boiler Houses
• Stable (used to accommodate 1-2 horses for private use only)
• Green Houses

The following are not classified as Domestic Outbuildings and no cover is provided for:

• Hay Sheds
• Cattle Sheds
• Workshops
• Farm Outbuildings

Under the Contents section of your policy cover is provided for your household goods and personal effects within the
domestic outbuildings.

We cover home office equipment as standard under our contents cover up to a max of €4,000 in any one policy year.  This would include computers, laptops and printers.

There is no need to contact us to let us know you are working from home as your home office equipment is covered as explained above.

A protected or graded structure is a structure that a planning authority considers to be of special interest from an architectural, historical, archaeological, artistic, cultural, scientific, social or technical point of view.

Accidental damage cover is for sudden or unintentional damage caused by an unexpected action or event which is not deliberate and is not weather related.

For example, spilling paint accidentally on a carpet is covered under the Contents accidental damage extension; putting a foot accidentally through the attic floor is covered under the Buildings accidental damage extension.

Allianz also offers automatic accidental damage cover to audio and audio-visual equipment, such as a TV, for up to €1,300, even if accidental damage on Contents is not selected.

Cover for loss, theft or damage to items away from your home can be added by selecting All Risks cover. Refer to the
All Risks Cover section of the Household Policy document for full details and the section on what is All Risks cover
below.
 

Are my valuables covered in my car under my household policy?
 

If you have All Risks cover on your Home Insurance policy your valuables are covered once your car is securely locked
and your valuables are completely concealed within a closed compartment or locked boot.

If your car is parked on your drive the valuables are covered under the ‘Contents in the open’ additional benefit on the
policy once your car is securely locked and your valuables are completely concealed within a closed compartment or
locked boot.
 

If your car is garaged then the items are covered under the contents section of the policy.
 

Does my home insurance cover my possessions when I am on holidays?

You have the option to cover loss, theft or accidental damage to your personal possessions while you are away from
your home or on holiday. To do this, you must select the All Risks additional cover option when taking out your policy.

Depending on your own particular requirements, you can specifically list your personal possessions which you wish to
cover or you can select the total amount of your personal possessions which is to be covered. Personal Possessions
which you may want to specifically insure outside your home may include items such as sports equipment, jewellery
and other valuables .This type of cover gives you peace of mind when you are away from home knowing that your
valuables are covered in the event of an incident which may give rise to you having to make a claim.

Details of covers, exclusions and limitations applicable to personal possessions outside of your property are outlined
in the All Risks section of the Household Policy Document.

All Risks cover is an optional extension of cover under your policy which protects you against loss or theft of, or
accidental damage to, personal valuables such as jewellery, clothing, photographic equipment etc. both inside and
outside your home. It also covers you for items you take abroad for up to 60 days.
 

There are two types of All Risks cover:

1    Specified All Risks Cover: which allows you to list individual items on your policy, and specify their value.
      Specified items normally include jewellery, hearing aids, bicycles, cameras and other valuables. Each item is
      covered up to the amount you insure it for.

2    Unspecified All Risks Cover: is an umbrella style cover which allows you to select a total amount that your
      personal effects will be covered for each year. There is no need to list each item individually. This cover is
      designed for items such as glasses, mobile phones, handbags etc.

     Certain limits apply to Unspecified All Risks cover including; €2,000 for any one item and bicycles up to a limit of
     €500 and personal money up to a limit of €750.

Allianz can also cover clothing and personal effects inside the Caravan / Mobile Home if you select contents cover as
an optional extra. This also includes accessories, furnishings and utensils.
 

You are covered for loss or damage which occurs during a break-in or an attempted break-in. As long as the Caravan /
Mobile Home is securely locked and the break-in was not due to carelessness on your behalf.
 

Allianz will also provide cover for your legal liability to third parties arising out of the ownership / use of the Caravan /
Mobile Home.
 

This cover would apply if you are found legally liable for:
 

• Accidental damage to property owned by third parties.
• Death, bodily injury or illness caused to third parties.

Details of covers, exclusions and limitations applicable to Caravans / Mobile Homes are outlined in the Caravan /
Mobile Home section of the Household Policy Document.
 

Where am I covered if I insure a Caravan / Mobile Home?  
 

Your Caravan / Mobile Home is insured anywhere in the Republic of Ireland, Great Britain, Isle of Man, The Channel Islands, including transit between all ports. Your Caravan / Mobile home is also insured for up to 60 days in any one Period of Insurance (the period shown on your Schedule any subsequent period for which we accept a renewal premium) while temporarily within the continent of Europe and in your custody or control.

Details of covers, exclusions and limitations applicable to Caravans / Mobile Homes are outlined in the Caravan /
Mobile Home section of the Household policy document.

Allianz Household policy provides a wide range of additional benefits. For example:

• Alternative accommodation
• Accidental damage to audio and audio-visual equipment up to the value of €1,300
• Breakage of glass and sanitary fixings
• Door lock replacement
• paying guests
• Visitors and guests property

Please refer to the Household Policy Document for details.

Yes, we will pay the cost of the charges you owe a local authority (as permitted by legislation) for Fire Brigade
attendance, as a result of any incident which is insured by your Policy. The maximum amount we will pay is €2,000.

Please refer to the Household Policy Document for details.

Where you permanently occupy the buildings as your main residence, up to 6 paying guests are covered
automatically. Cover can be extended for up to 12 paying guests.

Where you permanently occupy the buildings as your main residence, your policy automatically provides cover for up
to 6 paying guests including lodgers or Bed & Breakfast guests.
 

Suitable cover can also be arranged for properties let to tenants in one unit or let holiday homes.
 

Please refer to our Landlord Insurance for further details.

Your policy covers damage to your home caused by the weight of accumulated fallen snow or the sudden movement
of same.

The buildings section of the Household policy provides cover for liability arising out of ownership of the buildings.
 

The contents section of the Household policy provides cover for liability arising out of:

• Occupancy of the buildings
• Ownership of the contents
• Insured's personal capacity

The maximum amount we will pay for these covers is €3,000,000. Please refer to your Household Policy Document for
details.

Domestic employees are covered under the Liability to Domestic Employees section of the policy, however no cover is
provided for independent contractors.

A domestic employee is defined as an employee of the Household carrying out solely private domestic duties in connection with the Buildings including repair, maintenance or decoration.

Liability to others is covered as standard on your policy. Visitors to your home for business purposes are not covered on
a standard home policy.

The policy also covers visitor’s and guest’s property up to a maximum of €1,300. Please refer to your Household Policy Document for details.

 

Personal possessions are articles normally worn or carried on the person.

You could reduce your premium by having a working burglar alarm installed or opting for an increased voluntary
excess.

Property is considered unoccupied if it is not lived in on a permanent full-time basis, by the members of your household
or any other person authorized by you.

If your property becomes or is likely to become unoccupied, please advise Allianz of this change, as this information
may affect your insurance.

Where a property is unoccupied for more then 35 consecutive days some covers are automatically excluded. Please
refer to your Household Policy document for details. Different conditions apply for Holiday Homes. Please refer to the
Endorsements section of the Household Policy Document for more details.

My property is in a flood-prone area where the OPW ( Office of Public Works) have implemented flood defences, how
should I proceed to get a quote?

If your property is in a flood-prone area protected by fully completed OPW flood defences and you wish to obtain a
quote for your home insurance simply contact us at 01 448 48 48.