At present, EU law restricts both me and the Department, from intervening directly with insurance companies in the matter of what risks they are prepared to underwrite or premium levels that they set.
The matter of providing house insurance on timber-framed building is relatively new to the insurance industry here. Last year 33,852 house were registered with Homebond, the national house building guarantee scheme. Less that 1% of these were timber-framed houses. Because underwriting criteria and the resulting premiums are based on claims history experience, a relatively new risk can be assessed by underwriters with caution. It can also happen that in the initial years of the cover a higher insurance premium can be charged.
The standard perils contained in a house insurance policy include fire, storm damage and flooding. If the underwriter feels that timber-framed structures present an increased likelihood of a risk or that the severity of the damage would be greater in a timber framed house, the premium may be increased or in some circumstances the underwriter may choose not to cover the risk.
Having said that, the Irish Insurance Federation, IIF, have confirmed to officials of our Department, that they have no evidence to suggest that insurance cover is being refused to owners of timber-framed houses.
Likewise if, over time, the number of timber framed houses being built increases, and if claims experience to underwriters indicates that these houses are no worse a risk or indeed better, than cement block built houses, then the underwriting criteria and the consequent premium should reflect this.
Because there are differing views between various underwriters on this particular risk and how it can be assessed, it is worth recommending that individuals shop around or engage the services of an insurance broker, to help obtain a favourable quote.
