HOUSEHOLDERS who had to claimed for repai rs on thei r home insurance after the big freeze last December are in some cases facing a 300 per cent hi ke in t hei r insurance costs.
One householder who made a claim after pipes burst and flooded her West Clare home is now facing a bil l of € 1, 200 to insure her home for the comi ng year.
“Our insurance last year was less than € 400 for the year. I was ab- solutely st unned when they told me how much the renewal would be. And we can’t even shop around because the company still hasn’t paid for all t he work t hat was done,” t he woman, who asked not to be named, told The Clare People .
Having never made a claim on her home insurance before, the householder said she feels it is “ a ver y severe hi ke. They have you over a bar rel because you can’t not insure t he house in case somet hing happens. But I really feel this is excessive when there has never been a clai m before.”
Another home-owner who had to clai m after pipes burst on Christmas Day and flooded his home in East Clare has had a jump in the cost of his renewal to € 1,100.
“There was a lot of damage to put right as there was water flowing for a long ti me because of the day that it was. It was hard to get anyone out. But this just r ubs salt i n the wound. Our yearly premiums were around € 350 before this. They were quick about paying for t he work done but they were quick to put the price of renewal up as well,” he told The Clare People .
Household insurance rates increased by an average of 10 per cent last year and a similar amount the year before.
The last two years had been “heavily loss-making” for the indust r y, a spokesman for the Insurance Federation of Ireland said.
Insurance companies paid out a massive € 10. 573 million in compensation to householders and businesses in Clare whose proper ty was damaged in December’s big freeze.
The Banner count y received the four t h highest amount of insurance money in t he count r y, behind Limerick Galway and Ker r y.
The cost per 1, 000 head of population in the count y was € 95, 295.
And whi le the Munster area accounts for 28 per cent of t he national population, 40 per cent of the claims which insurers paid out were from Munster.
The December severe weather cost insurance companies € 224 million national ly.