Singaporeans surely do love their houses, and why not? There is still the refurbishing of the house to take into account after spending a substantial amount of money just to buy a house. We have previously looked at just how much Singaporeans spend on home renovations, and it’s certainly not a small sum whatsoever. After spending all that cash, you would think it’d make sense to make sure that your nice, new house is protected right? Well, most Singaporeans think they’re, but that may not be the case.
When you purchase a HDB flat, condominium apartment or landed property, the majority of individuals are required to buy a fire insurance policy.
We have even had people refusing to take a better home loan package from MoneySmart because there clearly was no “free 1-year fire insurance coverage”, believing that it’s the most essential idea they should safeguard themselves against home damage, nevertheless this isn’t true and let us see why:
Let us say your home accidentally catches fire over a minor cooking incident, or in the classic Hollywood instance, you leave the iron on and your precious dining table, your son’s Playstation and your expensive Italian couch get burnt to a crisp. Not having a policy that covers the contents of your house will render you weak in regards to asserting anything from your loss.
According to a report from the Singapore Civil Defence Force (SCDF), in the period from Jan-Dec 2014, there were a total of 2,888 residential fires that the SCDF had to respond to. That’s no small amount whatsoever, and we are pretty certain that in regards to your house catching fire, it is not as in the event the fire is going to selectively decide what it needs to burn.
Evidently, overlooking house contents insurance could incur some serious costs.
Fire vs Home Contents Insurance – What’s the dissimilarity?
The crucial difference between the two policies is that for fire insurance, it merely covers the cost of damage to your home’s construction, replacement of any “first” fixtures/fittings, or rebuilding a house (landed property). This includes the first flooring, ceiling, walls, doors, windows, and electric wiring.
Home contents insurance, on the other hand, covers – what’s inside your home; your renovations and contents within your house. But there’s a little more detail to this than fire insurance, which is comparatively more straightforward.
What Does House Contents Insurance Cover?
By and large, these are broadly the same amongst insurers. Its key purpose would be to cover the cost of replacing your possessions should the be damaged, destroyed or stolen.
There are additional benefits apart from just coverage of damage to your home when dealing with an incident to your residence, The Andrew Residences or possessions, that are maybe just as significant. Below are some things that you likely didn’t understand house contents insurance policies can cover, depending on your acquisition:
Accommodation: should you must maintain your stuff somewhere while your renovations are becoming and temporary storage completed etc
The emergency cash allowance can help with expenses, in case your house is inhabitable as a result of the insured dangers for more than 3 days
Accidental Medical Expenses: covers you against any medical expenses or bodily injuries due to an accident
Replacement of locks and keys due to larceny
There are of course a whole list of other things that home contents insurance insures, and this also differs from insurer to insurer, but should you’d like to make sure the items within your house are protected, this is actually the coverage you should be getting.
What Else Should You consider?
This is not something generally covered in all policies, but some strategies, such as the HL Home360 policy (a home insurance plan underwritten by HL Assurance, a member of Hong Leong Group) also comprise a 24 hour concierge service that provides access to electricians, plumbers, locksmiths, pest management technicians and air con repairmen.
This really is a fantastic resource to have in the event you like to take pleasure in the simplicity of calling just one number , anytime of the day, when something occurs at home that needs fixing.
This added service saves you the hassle of having to scramble round the Internet searching for a number to phone. Which is usually the case for most of us is not it? Aircon breaks down? Google for air con repair man. Locked out of your home? Google for locksmith. You might be sweating a few nights away in your bed with all the fan on, anything you find might not be accessible immediately when you call and worst if it’s a weekend.
Remember, one call = bunch of handy men prepared to repair whatever you desire. Quite awesome if you request us!
So Which Policy Should You Get?
Now that we’ve established that by and large, home contents insurance is a must for most home owners on top of only fundamental fire insurance, in the event you be getting a named perils policy or all-risk coverage? You might think that an all-risk coverage is just relevant to people with a house that is huge, but that’s not necessarily true.
- Having young children at home
- Having aged folk at home
- Travelling pretty frequently (1-3 times per quarter)
- Precious items in your dwelling
The coverage amount and insurance premium also varies significantly between insurers, with annual premiums ranging from as low as $70 (extremely bare bones stuff) to $400 (good stuff worth getting), so as always, be sure to compare coverages till you find the one that is right for you. You never know when those additional addons to your coverage might save you a lot more than merely cash.
Do you think home insurance is necessary? Discuss your thoughts with us here!