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Home insurance - what to look out for
21 Apr 2021 (203 views)

I give my views about home insurance - what to cover, and how much premium to pay.

When you buy home insurance, you need to consider the following:

a) What is the amount of insurance?

You have to cover the building and also the content. 

If you are living in a landed property, the building is the cost of rebuilding the structure in the event of total loss. This does not include the value of the land.

However, if you have taken a mortgage loan, it is likely that the bank had already insured the building to cover their loan. You only need to insure the balance of the value. 

If you are living in an apartment, such as a HDB flat or private apartment, it is likely that the building has already been insured by the MCST or the HDB. You do not need to buy additional insurance, as it would be a duplication.

However, when it comes to the content, such as the renovation, fittings, furniture and appliances, you will need to insure it separately. You have to make an estimate of the value of the contents to buy the appropriate amount of insurance.

b) What are the risk to cover?

You need to ensure that the policy covers "all perils", such as fire, explosion, lighting, impact (of vehicles and planes) and even natural disasters, such as volcanic eruption and earthquake.

Losses caused by floods and water may be included or excluded in the insurance. You will need to pay attention to see if this risk is covered and is made available.

You also need to ensure that the policy cover theft and burglary. The loss may be the stolen property or the damage caused by the burglary.

What should you do?

Many insurance companies have offered home insurance packages at quite competitive premiums. In many cases, the fix the amount of insurance for the building and content at the amounts that suit most owners.

You only need to get a few quotation and see which package suit you and the cost of the insurance. The cost should be quite low, as the risk of loss is low in Singapore. 

Here are some of the packages that are available:
https://www.moneysmart.sg/home-insurance

Most of the packages cost less than $100 a year. This is affordable. You only need to look for a cover that appears to be most suitable. It does not matter that the amount of insurance may not be fully adequate, as you can be "self insured" for the rest. There is no need to be "fully insured".

I hope that you find this article to be useful in explaining the need to insure your home and its contents.

Tan Kin Lian


Home insurance - what to look out for
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I give my views about home insurance - what to cover, and how much premium to pay.

When you buy home insurance, you need to consider the following:

a) What is the amount of insurance?

You have to cover the building and also the content. 

If you are living in a landed property, the building is the cost of rebuilding the structure in the event of total loss. This does not include the value of the land.

However, if you have taken a mortgage loan, it is likely that the bank had already insured the building to cover their loan. You only need to insure the balance of the value. 

If you are living in an apartment, such as a HDB flat or private apartment, it is likely that the building has already been insured by the MCST or the HDB. You do not need to buy additional insurance, as it would be a duplication.

However, when it comes to the content, such as the renovation, fittings, furniture and appliances, you will need to insure it separately. You have to make an estimate of the value of the contents to buy the appropriate amount of insurance.

b) What are the risk to cover?

You need to ensure that the policy covers "all perils", such as fire, explosion, lighting, impact (of vehicles and planes) and even natural disasters, such as volcanic eruption and earthquake.

Losses caused by floods and water may be included or excluded in the insurance. You will need to pay attention to see if this risk is covered and is made available.

You also need to ensure that the policy cover theft and burglary. The loss may be the stolen property or the damage caused by the burglary.

What should you do?

Many insurance companies have offered home insurance packages at quite competitive premiums. In many cases, the fix the amount of insurance for the building and content at the amounts that suit most owners.

You only need to get a few quotation and see which package suit you and the cost of the insurance. The cost should be quite low, as the risk of loss is low in Singapore. 

Here are some of the packages that are available:
https://www.moneysmart.sg/home-insurance

Most of the packages cost less than $100 a year. This is affordable. You only need to look for a cover that appears to be most suitable. It does not matter that the amount of insurance may not be fully adequate, as you can be "self insured" for the rest. There is no need to be "fully insured".

I hope that you find this article to be useful in explaining the need to insure your home and its contents.

Tan Kin Lian