What is Home Insurance?
Home insurance is a form of property insurance that covers losses and damages to an individual's residence, as well as the furnishings and other assets within the home.
Home insurance is not legally required.
If you own a home, you are responsible for insuring both the building and your belongings inside it. If you have a mortgage, your mortgage provider may require that you purchase and maintain buildings insurance for the duration of your mortgage.
Tenants are responsible for insuring their personal belongs against theft and damage.
Landlords, on the other hand, are obligated to insure the building they have rented out. If the property is furnished, landlords may also consider insuring the items belonging to them.
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What are the 3 types of Home Insurance?
Building Insurance: Protect the structure
Provides financial protection if there are damages to the structure of your home, such as the walls, roof and floors. It also typically covers damage to permanent fixtures and fittings. Applicable to both Homeowners and Landlords.
Contents Insurance: Protect your belongings
Covers your belongings inside your home, such as furniture, clothing, appliances, and electronic devices. It may also cover high-value items in your home on a declared basis. Applicable to both Homeowners and Tenants.
Combined home (homeowners) insurance: Buildings and contents
Combines building and contents insurance under one policy. It is usually more cost-effective to get them under one policy together, especially when you are the homeowner and living in the property with your personal belongings.
What does Home Insurance cover?
Depending on the exact policy that you opt for, the specific coverage may vary. Here's a general overview of what home insurance typically covers and doesn't cover:
Does cover:
- Fire damage
- Flood damage
- Burst pipes
- Theft by violent and forcible entry
Does not cover:
- General Wear and Tear
- Damage caused by negligence
- Intentional damage
- Damage caused by Pests
Most policies also come with a worldwide personal liability protection for you and your family, and this coverage extends to liability as a tenant.
How much does Home Insurance cost?
For building insurance, the price is determined by how much it would cost to rebuild your house. Factors such as property size are considered – the larger the property, the higher the cost.
For contents insurance, the value of your possessions is a key factor in determining the cost. In both cases, whether you have made claims in the past will also be taken into account. A history of claims on your home insurance can indicate higher risk and lead to higher premiums.
In Singapore, building standards are high, and the city is relatively safe with no natural disasters. Insurers may ask fewer questions about building type and location.
Other factors that can still influence the cost of your Home Insurance include:
- Value of your contents: The more valuable the items you want to insure, the higher the premium.
- Add-ons. Some coverage options, such as High-Value items coverage, or Pet Owner Liability are not included as standard in a home insurance policy. You may pay extra to add these coverages to your policy.
What kind of add-on benefits can I include?
By paying a bit more, you can add optional extras to your policy to give you even more protection. Some policies already include some of these features as default, so you may not need to add them separately. Add-ons include:
High-value items coverage:
Protects individual belongings worth over $1,000 such as jewellery, electronics or bicycles. This is especially useful when the default coverage limit for each item in your home policy is not sufficient. Adding this to your home insurance policy protects these items in case they are lost, damaged or stolen. Additionally, you can choose to protect your items even when they are away from home.
Home Loan Protection Benefit:
Offers protection for a portion of the outstanding home loan, up to a specified limit, in the unfortunate event of the death of the insured or their spouse, who is the legally registered owner of the building. If the Insured or spouse experiences Death or Permanent Total Disablement due to bodily Injury sustained within the insured building during the Period of Insurance, the Company will pay this benefit. This payout will be made as per the specified amount, as long as the death occurs within one year from the date of the Injury.
Pet owner Liability:
If you’re a dog owner, you may be held liable for negligence if your dog causes harm to others due to your actions or omissions, for example forgetting to leash. This coverage addresses third-party liabilities that may arise from dog ownership, including accidental death and injuries, theft, and medical expenses resulting from illness or accidents.
Multi-appliances Home Protector:
Provides coverage for repairs of your home appliances, whether they are new or existing. It applies to mechanical and/or electrical failure or breakdown, resulting in the sudden loss of normal appliance function. The coverage ensures that necessary repairs to restore these functions are covered within the Period of Insurance.
What are the other types of Home Insurance?
Here’s the different forms of Home Insurance:
Landlord
Landlord Insurance is a specialized type of insurance policy designed to provide financial protection to property owners who rent or lease their residential or commercial properties to tenants.
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Tenant
Tenant Insurance, also known as renters insurance, is a type of insurance policy designed to provide financial protection to individuals who rent or lease a residential property, such as an apartment, condo, or house.
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Art and Jewellery
Arts and Jewellery Insurance is a specialised type of insurance coverage designed to protect valuable and high-end art pieces, collectibles, and jewellery. It provides financial protection against various risks, such as theft, loss, damage, and even appreciation in the value of these valuable items.
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Contact us for policy quotation,
comparison and unbiased advice now!