Everything You Should Know About Home Insurance in Singapore
Singapore is arguably one of the safest cities in the world, with an ultra-low crime rate that every citizen is proud of. A crime statistics by Singapore Police force in 2017 even shows that the number of serious property crimes has reached an all-time low. Given these facts, one may quickly jump to the conclusion that it is unnecessary to purchase a home insurance plan in the city-state.
Nevertheless, as the TV slogan goes, “low crime doesn’t mean no crime”. There are other hazards that can turn your homes into rubble in a matter of minutes, such as fire and floods. Doesn’t matter if you‘re dwelling in a studio, a condo, an HDB flat, or a house – your home is more than just a roof over your head, and you should definitely secure an insurance plan for this valuable asset and the contents within.
In this blog, we will provide you with a comprehensive overview of what you should know about home insurance in Singapore, including the definition of home insurance, the scope of coverage, criteria for selecting the right plan, and how Kwiksure Singapore can help you.
What exactly is home insurance?
By definition, home insurance is a type of insurance that protects one’s property and the contents within against accidental damage or loss.
There are two main types of home insurance plans, namely insured peril and all-risks. An insured peril plan protects you against any damage on the structure caused by a certain type of mishaps such as fire, flood or theft. An all-risks plan is tailored to provide coverage for a much wider range of situations unless specifically excluded in the policy.
The scope of coverages
In this part, we will briefly introduce the areas that most home insurance policies cover.
- Building, fixtures, fittings and renovation
It is stipulated under the law that, if you take an HDB loan from a bank to purchase a property, you must secure a fire insurance plan. One common misperception is that the policy covers everything in the premises in the event of a fire. But in fact, it only covers the original fixtures and fittings in the building. As such, you may find yourself still having to pay out of pocket for the furniture and electronic appliances destroyed. In contrast, a home insurance policy protects you from these losses, among other expenses such as renovation and rebuilding costs.
- Home contents
This type of policy safeguards household items such as fridge, TV and other personal belongings from being stolen or damaged. Usually, there are compensation limits for each item and an aggregate maximum of all contents, which vary from plan to plan. As such, you may consider purchasing separate insurance plans for your valuables such as jewelry collection and luxury watches. Just bear in mind that you should never underinsure your home. If the insurer finds out that the replacement value is exponentially higher than the policy coverage, it may just reduce their reimbursement when you make a claim.
- Personal Liability
It offers you protection when you are legally liable for someone’s injuries at your home. For instance, if a spinning fan falls from the ceiling and hit your guest’s head, you will be held accountable for the accident. Having secured a liability policy, you won’t have to pay for this guest’s medical bills out of pocket. It also covers you if you damage any third-party property.
- Alternative accommodation
If your premises become uninhabitable due to mishaps or hazards, the insurance plan will cover your expenses of residing in another place temporarily. Usually, the reimbursement comes with a daily benefit limit for a specific duration.
- Loss of money
It protects you from the unfortunate events of house break-ins, thefts and force entries.
It covers you from the accidental death or theft of a pedigree pet, usually a dog or a cat.
What should you consider when purchasing home insurance?
- Scope of coverage
Other than standard packages, most insurers also allow you to select coverage options to suit your individual needs. You should think thoroughly before deciding whether to include certain optional benefits such as cyber protection and bicycle coverage to cater to your affordability.
- The value of your home
Although all-risks plans provide much more coverage, they also tend to be more costly. In the end, it all comes down to how important the residence is to you. If you’re only living temporarily in a small flat with minimal decoration, you probably don’t need to get an all-risks plan. On the contrary, if you’re newlywed and have spent months designing the interiors of your love nest, an all-risks plan is the way to go.
Get professional advice today!
Given that most people are unfamiliar with home insurance solutions, it is worthwhile to seek professional advice from Kwiksure Singapore. With over 18 years of experience, our teams of specialists know the ins and outs of different insurance products and are on hands to answer your questions. Contact us today for a free quotation and plan comparison!