Homeowners could face bills running into the tens of thousands, or more, if a burst pipe causes damage to their home in the upcoming big freeze – even if they have home insurance.
This is because many homeowners are underinsured – meaning they are at risk of only getting a fraction of the payout they expect from their insurer if their house is damaged during extremely cold weather.
Paul Walsh, CEO of Peopl.ie, said: “Burst pipes are one of the most common problems during icy weather.
"A burst pipe could cost tens of thousands euro worth of damage if water is left running for a few days. The bill for the damage could even be more if a pipe bursts while you’re away as you’ll likely have to replace plasterboard, walls, wardrobes, kitchen units and so on – and you’ll probably have to repair electrical damage too.
"You could have to foot a big chunk of such damage repair bills yourself if you have underinsured your home – because your insurer will usually reduce its payout by the amount you’ve underinsured yourself by.”
Under-insurance is where your home is insured for less than the full cost of rebuilding it – or where the contents in your home are insured for less than it would cost to replace them.
More homeowners are getting caught out by underinsurance today – and are facing huge and unexpected repair bills as a result, according to Mr Walsh.
He added: “A recent report by the Central Bank found that about one in six (16.5%) Irish homeowners are underinsured.
“One of the main reasons people are underinsured today is that rising building costs have pushed up the cost of rebuilding or repairing their home. There are cases where people have underinsured their home by as much as 30 per cent – or even 50 per cent. This is a very dangerous position to be in ahead of a cold snap.”
Some people have had to take out loans to cover repair bills on their home because they were underinsured and had no rainy day fund in the wings.
Mr Walsh said: “It is important for homeowners to know that the onus is on them to ensure their home is insured for the right amount.
“People sometimes worry that their home insurance will be more expensive if they increase the buildings sum insured (the most your insurer will pay if your home is damaged or destroyed and needs to be rebuilt) on their home – however, it might not affect your premium at all.”
READ NEXT:
Dad regrets 'moment of madness' that cost him job, freedom and unborn child
Concern for missing rugby player weeks after being sent home from Ireland tour
Girl dies after taking 'unknown tablet' in nightclub as teen arrested
Meghan and Harry's documentary 'utterly explosive and worse than royals can imagine'
Get breaking news to your inbox by signing up to our newsletter
