Fire insurance is the type of insurance that covers the damages that occurs as a result of a fire. Most people residing in Singapore buy fire insurance as it is a requirement imposed by the Housing Development Board or HDB flat if you obtain a loan from HDB with your flat as security or it may be provided by your bank when you take up a loan with them with your property as the collateral. If you are staying in a condominium, your management committee should have bought the master fire insurance policy as it is mandatory under the Management Corporation Strata Title Act so that claims can be made to reinstate the damaged premises and the common property to its original condition. However, do you know the extent of insurance coverage offered by a typical fire insurance policy? Do you know the limitations of coverage of the policy?
What does fire insurance policy in Singapore typically cover?
In Singapore, fire insurance indemnifies you from certain damages as a result of fire. If the fire insurance policy is a general type, it only covers the cost of reinstating internal and external structures which are damaged. It does not cover you for furniture, electronic and electrical devices, renovation and personal valuables. In other words, your fire insurance typically covers the non-movable components and does not cover renovation. If you would like all these covered, paying more for a separate home content insurance may be the solution. Home content insurance covers furniture, electronic and electrical devices, renovation and personal valuables when unfortunate event happens. It also covers a wider range of events like water pipe burst, sewage pipes burst, theft, explosion, etc. leading to your financial loss. Fire insurance usually does not cover bodily injury or has limited coverage on this.
How about damage to your neighbor’s property and assets because of the fire started from your property?
If the fire started from your property spreads to your neighbor, your neighbor is likely to claim against you for the damages to their property and belongings. This is a third party claim or liability claim which is normally not covered by your fire insurance policy or covered minimally by it.
As such, one may wish to supplement basic home fire insurance with home contents and third party insurance for full coverage of the property.
Homes, whether it is constructed or bought, are expensive and most people take large sums of loan and pay substantial interest to own their houses. Your home is probably one of your most costly investments. Any loss occurs as a result of fire would drain a person financially and the entire family may suffer a great deal without the insurance. However, many people are hesitant in taking up fire, home content and third party insurance for their property. It may be penny wise and pound foolish.
If you have not bought a home fire insurance protection, take an immediate decision now and safeguard the potential losses you and your family may suffer. Make sure you are compensated comprehensively for losses due to fire and other events.
A family went out for dinner and returned to find their apartment destroyed by fire. They were devastated because the dad had just been retrenched and the mum was a housewife with no income and little savings. Though their apartment structure was covered by the fire insurance, they did not have home contents insurance to cover the replacement of furniture and valuables as well as the renovation. Furthermore, the family had to rent a place to stay for 2 months when the apartment is under repair and renovation. This would have been covered under the home contents insurance. The dad spent his retrenchment payout on the renovation and replacement of furniture and had none left for household expenses in between jobs. It was a tough moment for the dad because he needed a job so desperately.
With the examples above, people must change their perception of home content insurance. It is essential for all homeowners and not just for the rich who have millions worth of assets at home. Minimize the financial stress to you and your family by getting the home contents insurance as soon as possible.
Other Residential Property Insurance in Singapore
Besides fire Insurance, it may be wise to also consider the following insurance for full home insurance coverage:
If you are travelling for work or holidays for long duration, let our insurance personnel provide you with comprehensive travel insurance advice bearing in mind that the travel insurance should be affordable.