Quick answer: Buildings insurance covers the physical structure and is required by your mortgage lender from the day of drawdown. Contents insurance covers your belongings and is optional but recommended. Typical combined annual cost is €400–€900 depending on location, rebuild cost, and cover level.
Types of Home Insurance
Buildings Insurance
Buildings insurance covers the physical structure of your home — walls, roof, floors, windows, fitted kitchens and bathrooms — against events like:
- Fire and explosion
- Storm and flood damage
- Burst pipes and escape of water
- Subsidence
- Theft damage (e.g. forced entry)
- Impact damage (e.g. vehicle collision)
Required by your mortgage lender from the date of drawdown. If you own your home outright, it is optional but strongly advisable.
Contents Insurance
Contents insurance covers your personal belongings and furniture inside the home:
- Furniture, appliances, electronics
- Clothing, jewellery, valuables
- Accidental damage (if included)
Contents insurance is not required by lenders. For renters, it is the main insurance they should consider (the landlord insures the building).
How Much Do You Need?
Buildings Insurance: Rebuild Cost, Not Market Value
Buildings insurance should be based on the rebuild cost of the property — not the market value. The rebuild cost is what it would cost to demolish and fully reconstruct the building. It is often lower than the market value in urban areas (where land value is high) but can be higher in rural areas.
Common mistake: over-insuring or under-insuring by using the purchase price. The SCSI rebuild cost calculator provides estimates by property type and size.
Typical rebuild cost ranges (per the SCSI House Rebuilding Guide, Nov 2025): | Property Type | Approx. Rebuild Cost/sqm | |---|---| | Standard house (suburban) | €2,500–€3,400/sqm | | Detached house | €2,600–€3,400/sqm | | Apartment | €3,000–€3,900/sqm |
Costs are highest in Dublin and the surrounding region (a standard semi-detached house runs to roughly €3,380/sqm in Dublin) and lowest in the north-west. Always confirm with the SCSI calculator for your specific property and county.
Contents Insurance: Full Replacement Value
Estimate the full replacement value of everything you own — furniture, appliances, electronics, clothing, and valuables. Most people underestimate this. A practical approach: walk through each room and estimate replacement cost.
High-value items (jewellery, art, high-end bikes) may need to be listed separately.
Typical Costs
| Cover Type | Typical Annual Cost |
|---|---|
| Buildings insurance only | €250–€500 |
| Contents insurance only | €150–€350 |
| Combined buildings + contents | €400–€900 |
Costs vary significantly depending on: - Property location (flood risk zones, urban vs rural) - Rebuild cost and sum insured - Excess level chosen - Claims history - Security features (alarmed properties often get a discount)
Key Points
- Buildings insurance must be in place from the date of mortgage drawdown — arrange it before closing.
- Always insure for rebuild cost, not market value or purchase price.
- Shop around at renewal — home insurance premiums often creep up, and switching is straightforward.
- Some policies offer "new for old" replacement on contents — worth checking.
- Flood risk areas (check OPW Flood Maps) may attract higher premiums or exclusions.
Renters
If you rent, the landlord is responsible for buildings insurance. You should consider contents insurance to cover your own belongings — as a renter, you have no claim on the landlord's buildings policy for your personal property.
Common Questions
Q: Does home insurance cover accidental damage? Standard policies typically exclude accidental damage unless you add it explicitly. Accidental damage cover increases the premium but covers you for incidents like spilling wine on a carpet or a child breaking a TV — worth considering for families.
Q: What does "excess" mean in a home insurance policy? Your policy excess is the amount you pay toward each claim before the insurer covers the rest. A higher voluntary excess reduces your premium but means you pay more out-of-pocket if you claim. Set the excess at a level you could comfortably afford to pay in an emergency.
Q: Does the rebuild cost include the cost of the land? No — rebuild cost is the cost to construct the building only. Land is never lost in a fire or flood, so it is not included in buildings insurance sums insured.