Nursing homes are looking for a bailout to help them cover the cost of the surge in home insurance premiums in Ireland. Ever since Liberty Insurance decided to stop offering liability insurance to businesses, the nursing home sector is set to be struck. Last month the government approved one-off payments ranging between one hundred pounds to twenty-six thousand pounds to be issued to childcare providers; this is merely to help them deal with higher insurance costs arising from the withdrawal from the market of a critical insurance provider.
Nursing homes require similar, as stated by the chief executive of Nursing Homes, Ireland. Chief Tadhg Daly further adds that the childcare sector and nursing homes run parallelly and nursing homes need to a similar situation introduced immediately. Therefore, you must need house insurance Ireland to safeguard your house.
Liberty Insurance, the primary insurer of nursing homes, wrote to brokers that they had decided to withdraw its handling the commercial liability and commercial property lines of business. It will halt writing new business in particular sectors with immediate effect, and conclude its dynamic with the current activities from the beginning of April; blaming the continuing affairs around scale and profitability for Liberty Insurance to stop.
The departure of Liberty from home insurance Ireland sector is expected to push up premiums rates further as that only leaves two house insurance providers left prepared to cover nursing homes.
It has become seemingly unpleasant for nursing homes because the majority of them were already struggling financially, and a rise in home insurance costs in Ireland will adversely affect them. As a result of this decision, smaller nursing homes may have to shut down due to their inability to run a successful business. “Losing Liberty is a further threat to the nursing home sector” quoting Mr Daly.
There are predictions that up to twenty thousand jobs across a range of sector will be lost this year due to this home insurance crisis. There are four hundred and thirty nursing homes in Ireland and their home insurance costs have already doubled between 2010 and 1027 while continuing to rise.
Nursing homes settle their fees with the National Treatment Purchase Fund under the Fair Deal scheme, and there was no possibility of seeking higher payments in the middle of running contracts. At this rate, the government would have to come and contribute more funding if the services given to the old and vulnerable in nursing homes are to continue. It was concluded that nursing homeowners would work with home insurance Ireland providers in Ireland, the government and the HSE to ensure that nursing homes continue being in business. The government, however, insisted that getting funding did not mean getting a bailout, in fear of other sectors would seek financial support.
Finance Minister Paschal Donohoe said in November that insurers were withdrawing from the market due to Brexit and added that the “unstable claims environment might also be a factor”; meanwhile, the Alliance for Insurance Reform has alerted every political party asking them about their stand on insurance reform in advance of the election.