Why has my Home Insurance premium increased?
So, why has my premium changed? Let’s break it down.
At 123.ie, all customer premiums go into one shared pot, a pot that pays for every claim our customers make. Most customers won’t ever need to make a claim, but when claims do happen, the cost can vary.
Your premium can change from one year to the next for lots of reasons, and many of them are outside of your control. Here are some of the big ones:
Inflation:
Inflation has pushed up the price of repairs. Labour now costs more, including the time spent fixing the problem and handling the paperwork. Materials cost more too. As a result, even small claims now cost more to fix. Replacement electronics or appliances can also rise in cost.
Your home rebuild cost (sum insured):
The cost to rebuild your home has been rising. t doesn’t just cover the cost of materials like wood, steel, and concrete, or the cost of labour. It also includes the cost of meeting newer building rules, such as updated fire‑safety standards. If the amount your home is insured for goes up because rebuild costs are rising, your premium may go up too. To help match these rising costs we may increase your sum insured (indexation). There is more detail on this within your renewal pack.
Indexation and inflation sound like the same thing but are different. Inflation is about everyday price increases. This mostly applies to smaller claims. In these cases, the full cost of rebuilding your home or replacing everything isn’t reviewed. For larger claims with major damage, we look at the full cost to rebuild your home. This is done to make sure the amount you’re insured for is enough.
More claims:
If more people make claims costs go up. This can be due to more storms, wind and heavy rain damaging homes.
Updated Claims Patterns:
We regularly check past claims to see who is having more or fewer house claims. We look at things like the type of house, its age, how it’s heated, and where it’s located. If certain types of homes are making more claims, the cost of similar policies may go up.
Discounts:
Sometimes premiums go up because a discount you had last year is no longer available.
Some things within your control:
- Changes you make to your policy: if you make changes to your home, it can affect your premium. Changing the rebuild cost can also change what you pay. If you move to a new address, your premium may change as well.
-Your level of cover and any extras: choosing more cover or adding extras usually means a higher premium.
- Your chosen excess: this is the amount you agree to pay yourself if you make a claim. We cover the rest. If you choose a higher excess, you’ll pay more if something happens, but your premium now will be lower.
- Your claims history: things like your past claims also count.
And a reminder, if you have another policy with us, you get a loyalty discount.
Have a quick look at your premium breakdown above to make sure it’s there.
In short…
We’re here to help you understand what is changing and why. If you’re unsure, ask. We’re here to help you figure out what works best for you.