Buying a new build comes with a lot of paperwork, and insurance is easy to lump into one box. In practice, a new home in Ireland is usually protected in three separate ways: mortgage protection covers the loan if a borrower dies, a structural warranty may protect against certain building defects, and home insurance covers insured events such as fire, storm and escaping water. Knowing which does what makes it easier to buy the right cover.
Understanding home insurance requirements for new builds
Protecting the loan: mortgage protection
Mortgage protection is a life insurance policy designed to clear the outstanding mortgage if a covered borrower dies during the mortgage term. Under Section 126 of the Consumer Credit Act 1995, lenders generally must ensure qualifying borrowers have this cover, subject to exemptions such as age, health or a property that will not be their main residence. Your lender can explain its requirements before drawdown. The CCPC explains mortgage protection in more detail.
Mortgage protection does not insure the structure or belongings inside it.
Protecting against defects: the structural warranty
Many new homes in Ireland come with a structural defects scheme, such as HomeBond or another provider. These schemes may cover major structural defects for a defined period, often up to 10 years, but the precise protection depends on the certificate and terms. A lender may require an acceptable warranty or other evidence of building inspection. Ask your solicitor what applies to your home and for a copy of the documents.
This matters because home insurance generally does not pay to correct faulty workmanship, defective materials or ordinary settling. A defect in how something was built may need to be raised with the builder or under the structural warranty. Report any issue promptly and in writing, and check the relevant claim deadlines.
Protecting against damage: buildings and contents insurance
Buildings insurance can pay for damage to the structure caused by insured events, such as fire, storm or escaping water, subject to policy limits and exclusions. It is not a general legal requirement for homeowners, but a mortgage lender will usually require it. Contents cover protects your belongings and is worth arranging before furniture and other possessions arrive. Read the policy documents to see what each part covers.
When your cover should start
For a home bought from a developer, ask your solicitor when the risk of damage passes to you under your contract, and make sure your buildings cover starts no later than that point. This is often at completion, but do not assume the builder’s policy covers every risk up to closing without checking. Your lender may require proof of buildings insurance before drawdown.
New apartment buyers should check the block policy held by the owners’ management company. It normally insures the structure, but you may still need your own contents cover. Ask your solicitor and management company for the policy details.
If you are building your own home rather than buying a completed property from a developer, ask about self-build insurance for the construction period. Standard home insurance may be appropriate once the house is complete and accepted by the insurer.
What to tell your insurer about a new build
- Your rebuild figure, not the purchase price. The price paid to the developer includes land and other costs. Buildings insurance needs a suitable reconstruction sum. The Society of Chartered Surveyors Ireland’s rebuild calculator gives an indicative figure for standard estate-type houses; one-off or unusual homes may need professional advice.
- Energy features. Tell your insurer about solar panels, a heat pump and an EV charger. Check how each is treated in the policy and whether its replacement cost is already reflected in your rebuild estimate.
- Security. Provide accurate details of the locks, alarm and smoke alarms installed. Ask whether any security feature affects your quote or is required by the policy.
- Construction type. Insurers may ask whether the house has a timber frame or another construction method. Check the specification with your builder or solicitor if you are unsure.
Finding cost-effective and simple insurance policies
Once you know what you need, get quotes on comparable terms. The aim is to keep the cost manageable without leaving gaps.
Compare the policy, not just the price
Use the same buildings and contents sums insured and a similar excess across quotes. Then compare what is included as standard, what costs extra and the main exclusions. The CCPC’s home insurance guide is a useful independent reference.
Only pay for what fits your home
New builds have features that may change which extras matter to you:
- Accidental damage. Consider this for fixtures, flooring and furniture; check whether it is included or optional and which items it covers.
- Belongings outside the home. A phone, bike or other valuables may need personal possessions cover.
- Home emergency cover. This may help with certain heating, plumbing or electrical emergencies. Check how it sits alongside any builder or equipment warranty.
Keeping the monthly cost down
If you want to spread the premium, ask what the total payable will be, since instalments can cost more. A higher voluntary excess may reduce the quote, as long as you could afford it if you claim. Set realistic sums insured: too little cover can leave you underinsured, while an unnecessarily high figure may raise the premium without improving a claim payment.
Getting a quote
You can get an AA Home Insurance quote on theaa.ie. Have your expected cover start date, rebuild estimate and contents figure ready. The AA also offers car, travel and pet insurance and motoring services, including roadside assistance. Each is a separate product with its own terms.
Frequently asked questions
When should home insurance start on a new build?
Check with your solicitor when the risk passes to you under the purchase contract, and have buildings insurance in place no later than that date. This is often completion or closing day. Your lender may need proof of cover before releasing funds.
Does home insurance cover defects in my new build?
It generally does not pay to fix faulty workmanship, defective materials or ordinary settling. Raise defects with the builder promptly and check whether your structural warranty applies. Your home policy may still cover damage caused by a separate insured event, subject to its terms.
Do I need buildings insurance for a new build apartment?
The owners’ management company normally holds a block buildings policy, so you may not need to arrange one yourself. Ask for the policy and confirm what it covers with your solicitor and lender. Your own furniture and belongings will generally need separate contents cover.
Are solar panels and heat pumps covered by home insurance?
This depends on the insurer and the policy wording. Some policies treat permanently installed equipment as part of the buildings, but terms differ. Tell the insurer what is installed, check its cover and make sure your rebuild figure accounts for it without double-counting.
Getting the keys to a new home is a big moment. We’re here to help make the insurance part simple. Explore AA Home Insurance and get a quote in time for your cover to start.
