Multi-year home insurance allows policyholders to avail of the same insurance cover as a standard yearly policy, but with the guarantee that your premium won’t change, even if you make a claim.
At bonkers.ie we always say switching every year saves. However, sometimes signing up to a contract longer than the standard 12 months has its merits.
That’s where multi-year home insurance comes in.
Whether you’re looking to take out cover for the first time or have a policy that’s due for renewal and want to suss out a cheaper alternative, a multi-year home insurance policy can provide you, not only with a cheaper policy, but with certainty and financial security.
And what’s more, at bonkers.ie we recently launched our brand new home insurance service where customers can now purchase multi-year policies online from the comfort of their own couch.
However, before we delve into why a multi-year home insurance policy might be right for you, here’s a bit more detail as to what exactly it is.
What is multi-year home insurance?
With multi-year home insurance, you simply choose how long you want your policy to last – either two or three years – and we’ll give you a guaranteed price for that length of time.
Taking out a multi-year home insurance policy is favoured by many for the certainty it provides in terms of budgeting, as well as the guarantee that your premium won’t increase for the agreed term of your policy.
Advantages to a multi-year home insurance policy
If you’re looking to get cover in place, there are a number of advantages to choosing a multi-year home insurance policy.
Let’s take a look.
1. Fixed annual price
Multi-year insurance policies offer a guaranteed price over the term of your policy, whether that’s two or three years. This means you’ll have a fixed payment per month, for up to three years, which is beneficial for those looking for financial certainty.
2. Effective financial planning
Knowing how much your home insurance will cost for several years will allow you to budget accordingly. Not only will you have the reassurance of excellent cover, you’ll also know exactly how much your home insurance will cost for the next two or three years without having any of the financial worries.
Of course you may prefer the flexibility of a shorter-term policy. And while there can be disadvantages with signing up for a multi-year policy (market prices could decrease for example) what it does allow for is the ability to plan ahead, as well as providing certainty and security over a time period of your choosing.
3. Flexible payment options
Another boon about multi-year cover is that, in most cases, you won’t have to pay the whole premium up front. Most home insurance providers who provide multi-year policies offer flexible payment plans so you can spread your payments out over the duration of your policy.
Most insurance providers will require a deposit though, which is pretty standard, and usually only about 5% of the total premium. So a two-year policy priced at €800 would require a downpayment of €40, for example. The rest of your premium will then be collected in instalments with a low APR. It’s very straightforward.
4. Additional benefits
Alongside all of the usual cover you would expect from a home insurance policy, many providers who offer multi-year plans also offer additional levels of cover and benefits for customers. This can vary from additional cover for personal possessions, right through to covering charges for emergency services.
For example, home insurer Zurich provides extra cover for personal possessions outside the home up to a value of €2,000 with some of its multi-year policies, as well as replacement door locks up to €700, and a 24-hour emergency helpline - among other additional covers.
5. Low interest rate environment
As most are aware we’re in a very poor environment for savers right now with interest rates for savings accounts well below 1%. So, instead of putting your money into a low-yield savings account, a better use of your money could be covering your home insurance needs for the coming years.
6. No cost to claims
Taking out a multi-year policy has the added benefit that the cost of your premium won’t rise in the event of you making a claim.
You would normally be hit with a significant increase in the cost of your premium after a claim when you go to renew. But with a multi-year policy this isn’t the case.
7. Protected no matter what
If your circumstances change during the lifetime of your policy and you need to cancel you’ll be able to do so without being subject to a cancellation fee, provided it’s been more than one year and no claim was made. In other words, if you cancel mid-term you would only pay for the period of cover and anything beyond that would be refunded.
Be aware, however, that this may vary with insurance providers. As well as that, there may be restrictions on eligibility for multi-year cover. For example, some insurers will only offer multi-year policies for owner-occupied homes that are claims-free for a number of years.
Considerations before taking out a multi-year policy
Of course, taking out a multi-year insurance policy won’t suit everyone.
Perhaps the most important thing you should consider before taking out a policy of this type is how you manage your finances and whether signing up to a two or three-year policy is something you know you’ll be able to commit to.
Consumers should also be aware of the nature of locking into a multi-year policy where prices are concerned, as you may end up paying more if prices were to fall. That being said, prices could also go up meaning you could be saving money.
Finally, a policy that lasts for longer than the standard contract term of 12 months might not suit those who prefer to review and compare policies each year.
Home insurance service on bonkers.ie
At bonkers.ie we were delighted to recently launch our very own home insurance service.
Homeowners around Ireland can now save money on their insurance costs in minutes by applying with us online.
To get an instant quote all you need to do is fill out your home insurance details and cover requirements using our online application form.
Once you’re happy with the details of your new policy and complete your home insurance application on bonkers.ie in a timely manner, you can have your policy in place in minutes.
Helpful guides for homeowners
Before you start saving on your home insurance, check out our helpful guide first for 10 ways to reduce your home insurance costs.
We also have plenty of useful guides for saving on your other insurance costs:
- See here for simple ways to reduce your costs across all types of insurance.
- Taking out car insurance? Here are 12 things to consider beforehand.
- Here we answer 15 common life insurance questions.
- Last but not least, here are some of the important things to consider when taking out mortgage protection insurance.
Get in touch with us
Do you have any questions about multi-year home insurance? If so, we’d love to hear from you!