If you are currently residing in Singapore and you’re looking to protect your biggest asset being your home, then you have got to read through this post before making your decision. A home isn’t just a place where we sleep, it’s more than that, it’s our sanctuary, our refuge and as such, we need to care better for our homes and what better way to take care of our home than to get good home insurance to protect our assets.
Many homeowners in Singapore often neglect home insurance because of the mandatory fire and condominium units insurance. During my first stay in Singapore, questions like; “Do I need home insurance? Is home insurance necessary in Singapore?” plagued my mind as I constantly searched for the right answers, which I eventually found. Do you know that basic fire insurance only covers the building structure during a fire incident? Hence, this insurance does not cover your home renovation or home contents. I know you must be thinking that the risk of a fire incident in Singapore is drastically low, but is that really a fact? In 2019, Singapore recorded an increase in the overall number of fire incidents by 7.8% when compared to the previous year. The annual statistics record released by the Singapore Civil Defence Force (SCDF) showed that there were 142 fire injuries in 2019 and the majority of these fire injuries occurred in residential buildings.
Is home insurance necessary in Singapore?
Many homeowners in Singapore are reluctant to get home insurance due to the fact that Singapore is relatively robbery-free and the risk of dangers from natural disasters like typhoons and earthquakes are minimal, hence they scrimp on home insurance. Before you join in their ideology, ask yourself these questions; do I own the house I’m staying in? How many valuables can I keep in my house? And honestly, how lucky or unlucky can I be. When you ponder on these questions you’ll understand that getting good home insurance is the right choice to make. Home insurance goes beyond covering your building structure during a fire incident but also covers your renovations and home contents during unexpected events like break-ins or floods, with home insurance you are always prepared.
How to select the perfect home insurance for your property
Before you set out to get home insurance for your property, it is essential to understand fully what home insurance entails. There are 2 main types of home insurance in Singapore which includes;
- Insured peril home insurance
- All-risk home insurance
The insured peril home insurance policy covers specific accidents, such as the bursting of pipes, fire outbreaks, burglaries, lightning strikes, including natural disasters like earthquakes, typhoons, floods, etc. These are some of the listed perils in an insured peril home policy. While the all-risk home insurance policy is more comprehensive and expensive. It offers a wider range of coverage and protection against numerous accidental damages or losses. Although the all-risk policy coverage is quite large, it still doesn’t cover everything. You will have to read the exclusion list of the all-risk policy to determine what can or cannot be claimed. Always read the exclusion or inclusion list of any insurance policy shown to you because no two policies have the same list.
If you are looking for the best home insurance in Singapore then the best place to begin is to evaluate what financial losses you cannot afford. Create a list starting with your most valuable item, after going through this exercise you’ll be surprised about the replacement value cost of all your properties. More so, before you can successfully select the perfect home insurance for your property, you need to understand and know how much coverage you need and ensure that you are neither over-insured nor under-insured.
Every home insurance policy may differ slightly, however, there are some types of protections that are usually common, these includes;
- Renovations, fixtures, and fittings
- Loss of money
- Replacement of locks and keys after a burglary or break-in incident
- Legal documents like passport, title deeds, birth certificate, etc.
- Emergency cash allowance
- Removal of the debris before repair works begin
- Professional fees. This includes fees for professional damage assessors, legal consultants, engineers, or architects to help you determine whether your house is safe enough to move back into.
- Loss of rent or alternative accommodation cost
- Temporary cost of storage to help you stash your furniture and personal belongings while your home undergoes repair.
- Home quarantine cost if you’re served a home quarantine order
- Fire extinguishing cost to replace fire extinguishers
- Personal liability cost. This is payment for third-party damages, in situations where your house fire/flooding spreads and damages your neighbor’s property.
- Family personal accident, which covers injuries incurred by members of your family during fire outbreak or break-ins.
- Loss of guest or maids belongings
- Pets. You’re given payouts for the accidental demise of your pet.