Given how expensive property is in Singapore, getting the keys to your new home must feel the same as entering the gates of heaven. You’re probably bookmarking every single interior decoration site that you can, and planning a day to pick up that $8,000 teak table. The last thing on your mind is probably home insurance, and that could be the first thing that you need for your newfound paradise. Furthermore, if you are buying a property in Singapore prime address like Ardmore Park you better be insured!
“But, I have fire insurance”, we hear you say. Well, if you think that fire insurance will provide you sufficient coverage for your very expensive teak table and other precious items, think again!
The Fire Insurance is…Basic.
The basic fire insurance covers only damages on the internal building structure, and original fixtures and fittings. What this means is that should there be an accident of any kind, you will only be able to cover the structure and fittings, and none of your home contents. If you’re already shuddering at the thought of replacing all your furniture and décor, then a complete home insurance is what you need.
So what do Home Insurance plans cover?
Just in case you think that Home Insurance will cover the Ming Vase that you shatter to the ground in a fit of rage (it won’t), let’s first look at the risks that are covered in most plans:
Some of the typical events that are covered by insurance plans are:
- Bursting or overflowing of water tanks or pipes
- Specific natural disasters, like floods, earthquakes, windstorms, volcanic eruptions.
- Riots, strikes, and malicious acts
- Theft by violent or forcible entry
- Fire and explosion
- Impact by vehicles- in case you’re wondering, this also includes aircrafts.
Some insurance providers may even compensate you for theft by domestic helpers.
Just how much can you recover?
How much you can recover depends on how much you put in (i.e your monthly premium). Regardless of how premium and all-inclusive your insurance is, you should expect coverage that includes damage to home renovations, home contents, and personal belongings, as well as personal liability.
In terms of compensation limit, it could be a dollar limit (e.g. $1,000 per article) or a percentage of the sum insured on contents, most likely 5%. If you do have specific items that are very expensive (e.g. grand piano, heirlooms), you should consult your provider about increasing their limits.
Some plans come with higher premiums. But just before you dismiss them, consider the perks that they provide, some of which can come in particularly helpful.
- Removal of debris– Insurance providers usually offer coverage of up to 5% of the total sum insured of home contents and renovations cover.
- Alternative accommodation or Loss of Rent- This is one to pay attention to. Insurance companies can cover the cost of an alternative accommodation, or rent that continues to be payable by you. The coverage limits are either set with a fixed amount and time period (e.g. up to S$1000 per week for 12 weeks, or a percentage of the building/renovations and contents cover).
Remember to update your policy
As you grow in your home and revamp it from time to time, do remember to update the sum insured too, otherwise you may be sorely disappointed when you realize that your insurance doesn’t cover your newly refurbished kitchen.
All the best in your search for the perfect home insurance package!