Alan Farrell (Dublin North, Fine Gael) | Oireachtas source

I thank the Minister of State for taking this issue. I am fully aware of the work the Department and relevant bodies are undertaking to implement the recommendations of the report of the pyrite panel. I acknowledge it is a long and complex process to oversee the implementation of these recommendations, particularly as priority has been given to remediation rather than any other issue. I find it necessary, however, to highlight a particular recommendation in section 22 of the report with regard to home insurance issues that may require a new and more robust approach by Departments.

The report highlighted the discrimination on the part of insurance companies not only against home owners who had pyrite in their homes but also against home owners who have had their homes remediated and the pyrite removed, and I include myself in that category. This is a very personal issue for me as I am one of the 12,500 home owners affected by this issue. The report stated that the panel had been made aware that home owners are facing huge difficulties regarding insurance cover for houses affected by pyrite and some are being refused cover even in cases where remediation work has been undertaken and all pyritic material has been removed. It also states that this is not considered acceptable and should be adequately dealt with by the relevant parties.

The recommendations in section 22 of the pyrite panel's report include that the Central Bank and the National Consumer Agency should consult Government to address issues with regard to having minimum cover home insurance policies. The second point was that the insurance industry should remove additional restrictions on dwellings that have been certified as having been cleared of pyrite in accordance with today's certification process by way of the Building Control Act. The third point in that section was that the insurance industry should not withhold standard household insurance cover to dwellings specifically affected.

According to the National Consumer Agency, this issue has been raised by it with the Central Bank and support has been offered if it is to pursue this policy. However, the Central Bank has stated it is not within its control or remit to force insurers to take on particular risks. That leaves home owners in a quandary. The Irish Insurance Federation, a representative body for some Irish insurance companies, has stated that the report has been noted, that it understands a certification process is ongoing, that it is happy to engage with Government and relevant bodies in this process, and that it is awaiting the outcome of this process. In other words, it is sitting on its hands until it is forced to do something and, in the interim, home owners must wait. The implications of this are that until such time as the insurance companies do something, home owners are actively discriminated against even though the terms and conditions in almost all insurance policies protect the insurance companies against pyrite related claims. The standard terms and conditions of any household insurance policy, which I came across today, state: "We will not cover loss or damage arising from faulty workmanship, faulty design, faulty or inadequate drains or drainage systems, inadequate foundations or using faulty materials."

With regard to the recommendations in the report it is becoming increasingly obvious that regardless of the preconditions included in some insurance policies to protect the insurer, a resolution on this issue is not likely to be reached without Government intervention. For that reason and on behalf of the 12,500 home owners across this State affected by this issue who have had or are in the process of having their homes remediated, I request the Government to address the question of how we can help vindicate these citizens' rights and protect these property owners. It is our duty and responsibility to do something quickly.

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