Is home insurance (renovation and content) really worth it? - Seedly
 

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Is home insurance (renovation and content) really worth it?

I did a simple quote on a few home insurance providers and it works out to be around 80 per year for 80k renovation plus 40k content coverage.

How do insurance companies pay out claims such as furniture and how do they justify the amount of claim to settle considering depreciation? Do we need the purchase receipt at the point of claim? Does it mean that we do not need to get home insurance if we do not keep out receipts?

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Hi curious_moo,

Actually that really depends, I know that some companies are quite flexible in terms of their claim process. 1 example would be Chubb's Masterpiece Homeowners, I personally feel that it's very comprehensive and I do happen to know someone who happens to be from Chubb and will be able to advise you as needed. Link below for reference;

https://www.chubb.com/us-en/individuals-families/products/home/homeowners-insurance.aspx

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The worth of a home insurance programme depends on how much value you give to your home. If a small amount of money can protect your home's entire value, then I think it is perhaps worth it. Otherwise, I won't bear to spend another $80k on my home renovation should a disaster strike.

Different insurance companies adopt different definition for claim. For example, the policy may idemnify such cost for repair if item is partially damaged, replacement if the item is totally lost or damaged.

For the latter, it will be based on the same kind or type, provided that it is not superior to or more extensive than the item when new. Otherwise, it will be based on the next available model with the nearest product specifications to the totally damaged item.

In most cases, it will be valued to keep a copy of the receipt, e.g. scanned copy. Otherwise, it will be based on market evaluation on the value of the item.

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curious_moo

3w ago

How do you do a market evaluation on items if the whole house is in really bad shape after a fire?
Loh Tat Tian
Loh Tat Tian

2w ago

Its based on depreciation of the items too. Not exactly a like for like exchange.