Home Insurance Facts Singapore | Lesser Known Home Insurance Facts
Home Insurance | Insuranceby Priyadarshini 9 June 2022
Singapore has one of the highest homeownership rates in the world, with 91 percent of Singaporeans owning a property. In this blog, we tell you about home insurance facts in Singapore. We decided to take matters into our own hands and present four little-known house insurance facts that every homeowner should be aware of.
Home Insurance Facts in Singapore
The HDB Fire Insurance Scheme and Home Insurance are not the same
Without a question, this little-known information should be at the top of your list. If you own an HDB, you are also the proud owner of mandatory fire insurance coverage. That’s most likely because you were “forced” to sign up for one when you took for an HDB loan. But did you realize that the HDB fire insurance scheme isn’t a full-fledged home insurance policy?
As the name implies, the HDB fire insurance policy exclusively covers fire-related damages. Furthermore, it only covers damages to the building itself, i.e. the original internal construction (four walls and pillars) and electrical wiring that come with every HDB. The HDB fire insurance policy does not cover anything else in your HDB home.
Home insurance, on the other hand, provides full protection against damages other than fire. Water damage (for example, a leaking ceiling caused by flooding at your neighbor’s house), floods, earthquakes, and hurricanes are all covered by standard home insurance. Aside from that, home insurance allows you to cover damages to your home’s contents. This includes your furnishings, appliances, and the lovely artwork on your walls.
Is it simple to file a claim for home insurance?
In most circumstances, filing a claim with your homeowner’s insurance is straightforward. However, there are a few instances where it can be difficult. For example, claiming against personal legal liability coverage is far more limited than you may believe. You must demonstrate that your family was harmed as a result of an insured incident. You should also keep in mind that a payout will be issued only if there is total and/or permanent disability (TPD) or death.
Water damage is another example of a difficult claim. Water damage is the most common claim made against home insurance in Singapore. However, not all water damage is compensable. For example, if the water damage was caused by the deterioration of ancient pipes, you will be unable to make a claim against your house insurance. In addition, if it occurs while you are replacing a damaged pipe, your home insurer may deny your claim.
Home Insurance Facts in Singapore – Home Insurance is available for homeowners, landlords, and tenants
Did you know that different types of home insurance appeal to different target audiences? Home insurance coverage is available for homeowners, landlords, and tenants.
Landlord Insurance: Provides coverage for your home’s habitability
Landlord Home Insurance is intended to protect against the risk of property maintenance. This is to account for the possibility of unexpected expenses when renting or subletting your property. For example, if a prior tenant causes damage to the rented flat, rendering it unfit for the future tenant, some modifications will be required. It can get worse if the tenant fails to pay his or her rent. This is when this form of insurance can assist protect you from such threats.
Renters insurance protects your home’s contents
As a renter, a break-in, fire, flood, or water damage can completely destroy your stuff. Nobody, not even your landlord, will compensate for your losses. That is why you need your own set of home insurance so that the insurer can cover your own possessions in the event of damage. In the case of homeowner insurance, it is essentially a combination of coverage provided by both landlord and renters insurance. It safeguards both the habitability of your home (in the event of damage) and the contents of your home.
As your savings rise, so should your home insurance coverage
For Singaporeans, underinsurance is a very serious issue. Singaporeans frequently fail to obtain adequate insurance coverage, including life insurance, health insurance, and house insurance. Underinsurance is a particular issue with home insurance because it might result in you being underinsured.
This is because home insurance operates on an average clause basis. In layman’s words, this indicates that the coverage you obtain is less than your replacement cost, or the amount required to fully rebuild your home in the event of damage. When underinsurance occurs, your claims will be pro-rated due to the average clause. That is why you should always double-check that you have adequate house insurance coverage. Your house insurance coverage should grow in tandem with your wealth. You’d rather obtain the appropriate one than save a few dollars on your plan and lose more money in the long term.