Home contents insurance is the insurance that covers the items that are in your home in the event of loss by fire, flood, theft and other events. In Singapore, your personally belongings like furniture, renovation and valuables are frequently not covered by home fire insurance.
Purpose of home contents insurance
The main purpose of home contents insurance is to ensure that that precious items contained in your homes are given sufficient protection in the form of compensation if there are damaged or stolen. Precious items can be valuable art pieces, expensive jewelries and furniture, designer handbags, etc.
People who had suffered losses from theft, fire or floods know how painful it is. The costs of repairs and replacements will fall on savings which may not be sufficient. With renovation cost escalating and the appreciation of good interior design, couples nowadays spend significant amount on home renovation and some even take loans to finance their renovation. All it takes is a simple fire accident to damage the renovation and belongings at home. Imagine how much financial stress they have to face if they need to take another loan to renovate the place again, not forgetting the replacement of furniture and other assets.
With good home contents insurance, you have a peace of mind that any losses of valuables in the house are covered sufficiently by the insurance. Without this coverage, you and your family may always feel insecure leaving the house, worrying about the financial losses which would occur as a result of theft, fire, water pipe bursts and other unfortunate events.
How people benefited from home contents insurance?
Renovation Company Closed Down
A young couple took a loan for their renovation because they had little savings but wished to have their house tastefully designed. They appointed an interior designer cum renovation contractor to carry out comprehensive renovation. After they moved into the house for 4 months, they discovered that the tiling work was not done properly and the tiles started to pop and crack. They tried to contact the interior designer but could not reach him. Then they found out that their interior designer and contractor were no longer in business and they could not pursue the issue with the interior design and renovation companies. Luckily the couple bought the home content insurance and successfully made a claim for the damage they suffered. They do not have pay a single cent to get the new contractor to replace and redo all the floor tiles.
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.
Does home contents insurance cover injury or loss of pets?
Though home contents insurance cover your renovation, furniture and valuables, it does not cover injury or loss of pets. You may wish to insure your pets separately to make sure that they are covered too.
You may wish to read our guide on complete home insurance, including fire insurance, property insurance (both overseas property insurance and rented property insurance), travel insurance (check out our budgeted travel insurance quotes) and mortgage insurance.