Home Insurance or house insurance coverage is frequently overlooked by home owners. Many home owners spent a fortune on their beloved HDB apartments, condominium or landed properties but did not take pro-active step to protecting their homes from unforeseen circumstances. With the exception of HDB flat owners who need a HDB loan and is covered by compulsory insurance, it is not compulsory for private home owners to have an insurance coverage for their houses or apartments in Singapore. When home insurance is not compulsory, does it mean it is not necessary? For home owners who had suffered losses due to fire, theft, poor renovation work, etc. of their houses or apartments, they would surely understand the importance of having home insurance and home content insurance as a form of financial protection for loss and damage to their residential properties. They will not only buy a basic home insurance plan, they will more likely to buy a comprehensive home protection plan and perhaps scrutinize the details and extent of coverage to ensure that such unfortunate events will not cripple them financially, psychologically and emotionally in the future.
For those who are new to home insurance, let us introduce you to the definition of home insurance, why do you need the insurance and the different types of home insurance available in Singapore.
Definition of home insurance
Home insurance or house insurance is a form of financial protection or coverage for potential losses and damages to the house, apartments and/or assets within the house and apartments. It may include coverage in respect of accidents happened in the home or on the property.
Why do you need insurance coverage for your house or apartment?
The main purpose of home insurance is to protect you against the losses at home when something unfortunate happened. If your answer to one or more of the following questions are no, you would need the home insurance:
- In view of the rising cost of property and renovation, do you have the financial means to repair or replace your house or apartment when it is damaged?
- Do you have the financial means to replace all your belongings in the house if you lose them?
- Do you have the financial means to seek medical treatment if you or your family members are injured at home?
- Do you have the financial means to compensate someone for injury as a result of your or your family member's action like dropping a flower pot?
Types of home insurance
There are a few types of home insurance but most people are only aware of fire insurance because this insurance needs to be bought when you take a HDB loan. Some private loans also provide free fire insurance coverage. Lender is concern with your ability to replace or repair the place when fire breaks out and therefore fire insurance is very common when there is a loan taken on the property.
Besides home fire insurance, there are home contents insurance, home accident insurance, landlord's & tenant's insurance and public liability insurance. Some comprehensive home insurance plans cover all types of home insurance.
As the name implies, home fire insurance is the insurance to cover the cost of damage as a result of fire. Many fire insurance only covers the damage to the property and structure and does not cover the damage of contents. If so, you should consider the home content insurance.
Home contents insurance covers items like furniture, equipment and valuables of your home. It complements the fire insurance by covering what is inside the house rather than just the house itself.
Home mortgage insurance ensures that the loan taken up on the house or apartment such that the payment on the loan is covered by the insurance if the borrower (owner of the house or apartment) defaults on the payment due death, injury or other events.
Landlord's insurance aims to cover the losses in relation to the properties rented out while tenant's or renter's insurance aims to cover the liabilities which arise from damaging the properties which the tenant live in.
Looking for the best home insurance coverage now?
Now you are aware of the different types of home insurance and the need for a comprehensive home insurance. Your next question will be - who can you approach to get the best coverage at the most affordable price? Who can advise you appropriately and provide you with the best options when it comes to buying the home insurance? Let us be your adviser in home insurance and we assure you of the best experience.
Besides Singapore homes, we also help clients with overseas vacation homes insurance and insurance for overseas travel (i.e. wide in coverage but easy on pocket travel insurance).
What Other Are Saying
"The insurance advisor really adds great value to our hunt for the best protection plan for our house. We have a number of competitive home insurance quotes with comprehensive coverage."
~ John Woo
"Having such helpful insurance professional sourcing for the best home insurance for you, you can be assured that only the best quotes with the best value will be put forward to you."
~ Vivian Sim