Now that you’ve spent a fortune turning your house into a dream home, the next step you should consider now is how you can protect your investments – simply by taking up a home insurance policy.
HOME SAFE HOME
Taking the financial risks out of your home equation will not break the bank as home insurance is relatively affordable in Singapore. It offers an excellent safeguard against any unforeseen mishaps which range from fire, burglaries or theft, right down to “freak” weather extremes which may exact damages of varying proportions to items or property in your cherished castle. There are many home insurance options in the market vying for your same signature. Hence, the ease and convenience of purchasing home insurance aside, it all comes down to attaining some peace of mind with some dollars and sense.
If you are a first-time home insurance buyer, here are some pointers to ensure that your purchase journey does not turn into a hair-pulling experience before putting that pen to paper:
THE RIGHT POLICY
Choose the right policy which ensures the adequate protection you need. The general home insurance policies cover: your home and renovations, your household items, or specific selected perils. One common option would be a “named peril” insurance cover, such as HDB Fire Insurance Scheme which offers basic coverage against fire only. You can apply for additional policies to complement this, which will include additional cover for your renovations and household contents as well.
Other home insurance variants include an “all risks” policy which provides comprehensive, all-inclusive cover for all items “against all perils”, except for those which you’ve expressly stated to be excluded. Also do note that whilst most home insurers offer extensive cover for general items, coverage is limited for more valuable articles such as exquisite jewellery, fine arts, or rare collectibles, etc. In these cases, an additional separate insurance purchase may be required.
For private residential developments, the General Association of Insurance of Singapore provides a general guide to estimate the sum insured for your property, refer to the replacement cost table at http://www.gia.org.sg/consumer_faqs.php#fire.
Ensure all items you want to cover falls “within location”. Most local home insurers offer only restricted coverage, which covers only items and property that are “within location”. This effectively translates to: any unforeseen circumstance that leads to any subsequent loss or damage to any items or property must occur within the locale of your stated home residence in order to qualify your eligibility for claims or compensation. However, the good news is: there are some home insurers out there who do make an exception to this rule.
ASK IF YOU ARE UNSURE
Always ask if you’re unsure. There are many different complex policy variants offered by selected home insurers, and various policies may be similar, but categorised under different names. Familiarise yourself with terms like “policy excess or deductible” – the cost you are required to bear if you make a claim against your policy. Always check with your home insurer when you’re unclear about a particular clause in your policy and never be afraid to ask.
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Cover photo courtesy of LeraBlog.org
