What to look out for

• Mortgage lenders will insist that borrowers buy buildings insurance so that they can afford to rebuild their house if it is destroyed, but it is not compulsory to buy the policy the lender offers.

• A survey by the financial regulator published earlier this year showed that homeowners could save between €80 and €230 on their annual premium by shopping around for cover.

• Premiums can be reduced by fitting smoke alarms, using approved security locks, fitting a burglar alarm and joining a Neighbourhood Watch scheme. People over a certain age may also be able to secure a discount, as can those who hold another policy with the same company.

• The contents section of the policy covers moveable objects in the home. If you have particularly valuable items in the home, these should be named on the policy. Most insurers automatically bump up the value of contents cover by 10 per cent for the month of December to cover the seasonal storing of gifts.

• Excesses, which are the first portion of any claim that policyholders must pay themselves, vary from insurer to insurer and may be higher for certain types of claim, for example subsidence. People who live in flood-prone areas may be asked to accept a higher excess for flood damage.

• Make sure your policy is index-linked, so that the amount of cover keeps up with the inflating cost of rebuilding the property in the event of damage; this will avoid any shortfalls in cover. Apartment owners should check their management company's block insurance policy is up to date.

• Look for "new for old" cover in order to avoid deductions for wear and tear when making a claim. But you cannot make a claim for normal wear and tear itself. Accidental damage to household equipment is usually an optional extra.

• Some insurers penalise policyholders who are underinsured by forcing them to pay a proportion of the costs in the event of partial damage. But this practice, known as "the average clause", is not as common as it used to be.

An independent consumer guide to home insurance is available from the financial regulator by ringing lo-call 1890 777 777 or by logging onto www.itsyourmoney.ie.

The SCS 2006 Guide to House Rebuilding Insurance is available by sending a stamped self-addressed envelope to the Society of Chartered Surveyors at 5 Wilton Place, Dublin 2. It can also be downloaded from www.scs.ie.