The devastating floods before Christmas and the big freeze in January saw insurance companies’ payout a massive €541 million; the payout exceeded the total of all serious weather events over the last decade, which stood at €358m. The Irish Insurance Federation (IIF) agreed that homeowners could now face at least at 20% increase, if … not more, in their premiums as the industry seeks to absorb the half-billion euro cost of extreme weather damage.
But why pay this increase? Or why pay for home insurance at all?
Insurance is about protecting against risk but it has been reported that those affected by the recent floods and made a claim did not received the amount they were covered for. They also found it impossible to switch to another insurer and when they could get cover they were forced to accept an excess. It is also reported that half the number of insurance companies refuse to cover householders who have made a previous home insurance claim.
So while rising premiums for some may be a problem, the possibility of withdrawing flood cover in a growing number of areas or being refused cover is inevitable for others.
Have Your Say: Home Insurance: Why pay for it?
- Should we pay for home insurance if we will not be given the cover we paid for?
- Should we, the homeowner be penalised for making a claim due to extreme weather conditions? After all insurance is about protecting against risk?