Home Insurance Query - 123.ie

rosehip

I'm just reading the 50 page policy document for RSA before i take out home insurance with 123. Came in cheapest.

BUT am i right in thinking that the things they allow are allowed because you wouldn't bother claiming for them - ie a cracked window or sink and yet the things i'd like peace of mind on ie water leaks etc are not.

And could some kind soul out there please tell me what "any gradually operating cause" is - is it wear and tear or ignoring a leak and then a ceiling falls in 6 months later? Because it's mentioned in every exclusion.

Regards, Rose.

kkelliher

Rose

123.ie is the direct marketing vehicle for Royal and Sun alliance. The 123 policy is somewhat in line with their general policy.

Water escape is covered under section 4 of the buildings policy. Page 8 of the document. This covers damage as a result of freezing, escape or overflow of water. It does not cover damage as a result of water that escapes from shower units or baths (ie through seals or grouts) as this is a maintenance issue. It also does not cover the actual cost of repair of the item that leaked. You should note the Excess for any claim for escape of water is €600 for buildings.

It is odd that they have not provided a deffinition for the "gradually operating clause" but in general it would apply to anthing that happens gradually. This would leave questions open about wear and tear. Generally pipes leak because of wear and tear therefore this would appear to be at odds with the overall coverage. It comes down to their own underwriters deffinition on this item but I would find it hard to believe they could decline the consequental damage of a leaking pipe due to wear and tear.

Teagwee

Unfortunately, I can't help with the interpretation, Rose, but I'd like to agree re some of the so-called 'benefits'. There is no way that we would claim for the odd extras that are kindly 'offered' as part of our policy (can't recall who we're with at the moment as we change with the price). I've known people who claimed for something like the loss of a freezer full of food and paid through the nose in extra premiums for years afterwards to the tune of many more frozen meals than what they got!

All we really want is insurance that covers us in case our house burns down or if we have some almighty pipe failure and a massive leak that destroys the house and contents - we are VERY careful to ensure that this doesn't happen and have so many checks in place that it's unlikely. We live on a high hill, so flooding (short of the end of the world) is unlikely to affect us.

Why can't we just choose our own risk profile and cut out these useless frills?

kkelliher

Teagwee wrote: »

Unfortunately, I can't help with the interpretation, Rose, but I'd like to agree re some of the so-called 'benefits'. There is no way that we would claim for the odd extras that are kindly 'offered' as part of our policy (can't recall who we're with at the moment as we change with the price). I've known people who claimed for something like the loss of a freezer full of food and paid through the nose in extra premiums for years afterwards to the tune of many more frozen meals than what they got!

All we really want is insurance that covers us in case our house burns down or if we have some almighty pipe failure and a massive leak that destroys the house and contents - we are VERY careful to ensure that this doesn't happen and have so many checks in place that it's unlikely. We live on a high hill, so flooding (short of the end of the world) is unlikely to affect us.

Why can't we just choose our own risk profile and cut out these useless frills?

They do this in the US where you fill in the form and tick boxes for the cover you want. I guess in ireland its in their interest not too as the market is so small it would probably never pay them to do it. I saw a survey once where 1000 perople were surveyed and something like 92% of people answered that fire was the reason they paid insurance.......says it all really.

Teagwee

kkelliher wrote: »

They do this in the US where you fill in the form and tick boxes for the cover you want. I guess in ireland its in their interest not too as the market is so small it would probably never pay them to do it. I saw a survey once where 1000 perople were surveyed and something like 92% of people answered that fire was the reason they paid insurance.......says it all really.

You're right - it does indeed say it all. For as long as we've had a house of our own, through thick and (mostly) thin, we've never even considered NOT having house insurance and contents. This year, we've finally given up health insurance and I can see us looking at house insurance in the future as belts get tightened even further and the household charge et al kicks in big time.

A year or two ago I'd have been aghast at such thinking but money will only stretch so far. Insurers may well have to start offering scaled down policies - half a loaf is better than no bread. If people like us who always bought insurance without question are now weighing up the odds, it's time for insurers to consider their options.

rosehip

Thanks guys.

KK, you are right - it's too ambiguous and subject to interpretation. I think i can't risk it. House is last asset left - would you have any recommendations - Axa? Allianz? I think on reflection i'd rather pay a bit more now to a company who would pay out if god forbid...

Teag, i would love a no frills but as KK said, i couldn't get it. I too was brought up to never claim unless the house fell down so i only want fire and flood. I am OCD about plugs and safety etc and am not in flood area but drains can burst and tanks can leak etc.

I too am cut to the bone and am sick of paying insurance for just moving and breathing but i would never be able to get a mortgage again for health reasons.

A burglar will get nothing in my house - no electronics, gadgets or money and all the furniture is secondhand. ( i faint in shops selling new stuff ).

Kind regards,
Rose

Radharc na Sleibhte

RSA 123 is as good a policy as any.
Gradual operating cause is a general exclusion on all home insurance policies.
The repairs to the pipe are generally never covered under any policy, unless, some do cover if it is frost. The reason is because most pipes leak due to wear and tear, but the water damage is covered under the escape of water peril.

kkelliher

Radharc na Sleibhte wrote: »

RSA 123 is as good a policy as any.
Gradual operating cause is a general exclusion on all home insurance policies.
The repairs to the pipe are generally never covered under any policy, unless, some do cover if it is frost. The reason is because most pipes leak due to wear and tear, but the water damage is covered under the escape of water peril.

Agree with this completly, however the 123.ie wording on the gradual operating clause is somewhat open ended. Having read most of the others they are not as open ended as this one.

Radharc na Sleibhte

Sorry I just repeated what you said
The wording is vague alright! It usually is.
I really wouldnt let that stop me going with 123.ie
They won't use the "wear and tear" or "gradually operating cause" exclusion to get out of an escape of water claim, except for water leaking through grout gradually or as a result of seals wearing down.
I personally am with Allianz, but in fairness, the same exclusions are on their policy too.

blindside88

Who not just call them and ask to explain the term and ask any questions you jar on it? All of their calls are recorded and if they tell you something is covered and it isn't they will still pay out (ex cratia payment). Your call to 123 is effectively your contract hence it is recorded and you don't have to fill out a proposal form for any of their policies

rosehip

Thanks for replying guys,

Yes i am finding they are very open-ended, and yes on reading allianz's policy i found more or less the same but i found allianz's policy terms better ie €1000 for trace and access instead of RSA's €650, and a few other things are better like smoke damage etc so i got a quote from A just now for only €37 more than RSA so i took it.

Thanks for all the knowledge - and have a lovely weekend (pretend it's not raining....:D )

Kind regards, Rose.