Struggling homeowners warned not to underinsure their houses
HOMEOWNERS have been warned to resist the temptation to underinsure their homes after evidence that consumers have lost out heavily on claims, writes Charlie Weston.
A loss assessor firm said homes insured for only 50pc of the rebuilding cost are only getting half the value of a claim when there is damage.
And Joe Doyle of InsuranceWorks.ie claimed insurance companies were deliberately selling people policies they know will leave the householder underinsured.
He said insurers were doing this because they know people are struggling to afford the full cost of insurance.
"What people are not aware of is that if they take out insurance that only covers say 50pc of the value of their house, then all claims they subsequently make will only receive a 50pc payout," he said.