We here at Nestor Shanahan Auctioneers believe that property insurance deserves more attention from buyers before they make an offer. While many purchasers focus on the asking price, mortgage approval, location and condition of a home, insurance can have a significant impact on the ongoing cost and practicality of ownership. A property that appears affordable may become more expensive to insure due to its location, construction, previous claims history or particular risks. Asking the right questions early can help buyers avoid unexpected difficulties later in the purchasing process.
Property insurance is not simply a formality to arrange after contracts have been signed. Mortgage lenders will generally require suitable buildings insurance, and certain properties may be more difficult or expensive to insure than others. Before making an offer, buyers should consider the following five questions.
1. Can This Property Be Insured Easily?
The first question is whether suitable buildings insurance is readily available for the property. Most standard homes can be insured without difficulty, but certain characteristics may make a property more complicated to cover.
Potential issues can include:
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A history of flooding
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Subsidence or structural movement
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A thatched roof
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Non-standard construction
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Properties located in exposed coastal areas
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Previous significant insurance claims
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Long periods when the property was unoccupied
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Unusual extensions or alterations
Buyers should not assume that a property is automatically insurable simply because it is currently occupied. It is sensible to make preliminary enquiries with an insurer or broker before becoming too committed to the purchase.
2. Are There Any Location-Specific Risks?
The location of a property can have a major influence on insurance premiums and availability. Homes in areas affected by flooding, coastal erosion, storm exposure or previous subsidence may attract higher premiums or additional policy conditions.
Buyers should investigate whether the property has experienced any previous issues relating to:
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Flooding from rivers, streams or surface water
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Coastal storms or high winds
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Landslides or ground movement
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Drainage problems
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Falling trees or exposed surroundings
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Nearby commercial or industrial activity
A property may never have suffered damage itself but could still be located in an area that insurers consider higher risk. Asking the seller and solicitor for relevant information, while also obtaining an independent insurance quotation, can provide a clearer picture.
3. Has the Property Ever Been Subject to an Insurance Claim?
A previous insurance claim does not automatically mean a property should be avoided. However, buyers should understand what happened, how the issue was resolved and whether there is any possibility of the problem recurring.
For example, a previous claim may have involved storm damage, burst pipes, water ingress, subsidence or fire damage. The important questions are whether repairs were completed properly and whether supporting documentation is available.
Buyers should ask:
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Has the property ever suffered significant damage?
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Were any insurance claims made?
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What was the cause of the damage?
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Were professional repairs carried out?
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Are guarantees or certificates available?
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Has the issue been fully resolved?
Where the property has experienced structural or water-related problems, buyers should ensure that their surveyor and solicitor are aware of the history.
4. What Features Could Increase the Premium?
Certain features can make a property more expensive to insure. These may include a large extension, outbuildings, a swimming pool, an oil tank, a wood-burning stove, solar panels, listed-building status or a non-standard roof.
Older properties may also require specialist cover depending on their construction and materials. A home built with stone walls, unusual timber framing or other non-standard methods may not fit easily within a standard insurance policy.
Before making an offer, buyers should identify any features that could affect the premium or require specialist cover. They should also establish whether sheds, garages, gates, boundary walls and other external structures are included in the policy.
The cost of contents insurance should also be considered separately, particularly if the property is larger or contains valuable furnishings, artwork or equipment.
5. Will Insurance Requirements Affect the Mortgage or Purchase Timeline?
Mortgage lenders generally require buildings insurance to be in place before the loan can be drawn down. If a property proves difficult to insure, this could delay the transaction or create additional conditions before the lender is satisfied.
Buyers should therefore avoid leaving insurance arrangements until the last minute. A preliminary quotation can help identify potential issues early and provide a more realistic estimate of the total cost of owning the property.
It is also important to check whether the proposed policy provides adequate cover for the property’s full rebuilding cost. The market value of a home and the cost of rebuilding it are not necessarily the same, particularly where specialist materials or construction methods are involved.
Insurance Should Be Part of the Pre-Offer Checklist
Property insurance is often overlooked during the early stages of buying a home, but it can influence both affordability and the smooth progression of a sale. A property with an unusual construction, a history of damage or a location-specific risk may require more research than a standard home.
Obtaining an insurance quotation before making an offer can help buyers understand the likely costs and identify any concerns while they still have time to investigate them. It also ensures that the buyer is assessing the property based on the full financial commitment rather than the purchase price alone.
A little preparation at this stage can help prevent delays, unexpected premiums and unpleasant surprises after moving into the property.
If you would like to discuss buying or selling a property, contact us on 061 415337 or email info@nestorshanahan.ie or visit nestorshanahan.ie.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.
