Life Cover During a Self-Build in Ireland — When the Lender Wants It and What It Costs
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Life cover during build: €400–€800/year. Most lenders require it for a self-build mortgage. Decreasing term aligned to the drawdown schedule.
Life cover during build: €400–€800/year. Most lenders require it for a self-build mortgage. Decreasing term aligned to the drawdown schedule. The cover decreases as the mortgage is drawn down and the build progresses. Aligns with the stage payment schedule. Convert to a standard mortgage protection policy at completion. The premium drops because the cover is for the full mortgage, not the build drawdown. Get a quote at the same time as the mortgage; the premium varies by 20–30% across insurers. Most Irish self-builders use the same insurer for life cover, mortgage protection, and the site insurance (continuity discount).
When this matters most
You're applying for a self-build mortgage.
When this doesn't apply
The cover is in place.
Sources
Citizens Information, Mortgage protection. https://www.citizensinformation.ie/
Frequently asked questions
How much does life cover cost during a self-build?
€400–€800/year. Decreasing term aligned to the drawdown schedule. Most lenders require it for a self-build mortgage.
Why does life cover decrease during a build?
Aligned to the drawdown schedule. The cover starts at 0% (no drawdown) and rises to 100% (full mortgage) as the build progresses. At completion, it converts to a standard mortgage protection policy.
Do I need life cover for a self-build mortgage?
Yes, most lenders require it. Get a quote at the same time as the mortgage; the premium varies by 20–30% across insurers.
When this matters most
You're applying for a self-build mortgage.
When this doesn't apply
The cover is in place.
Where to go next
Next decision
The next step in your build sequence.
- Contract Law Basics for Self-Builders in Ireland — RIAI Contract, Retention, and Your Rights →
- Self-Build Insurance in Ireland — Site Cover, Public Liability, and the Lender Requirement →
- Stamp Duty on a Site in Ireland — 1% Up to €1m, 2% Above, and Agricultural Land →
- Structural Warranty in Ireland — HomeBond, Premier Guarantee, and the 10-Year Cover →
- VAT-Registered Self-Builder in Ireland — The Sole Trader Route and the 13B Scheme →
Branch into
Adjacent decisions at the same stage.
Watch out for
Common mistakes, hidden costs, gotchas.
- Capital Gains Tax on a Site in Ireland — When It Applies, the Exemptions, and the Trap →
- Latent Defects Insurance in Ireland — 10-Year Cover for Hidden Defects →
- Public Liability for a Self-Build in Ireland — Who Needs It, What It Covers, and the Cost →
- Solicitor for a Self-Build in Ireland — When to Hire, What They Do, and the Cost →