"This is... HOMEEEEE, TRULYYY" ~
Home, is where our safe haven is. In this case, home refers to the place with our loved family members, the place where our chouchou is and where taking a dump is the most comfortable and relaxing. Hence, our home is very important and we need to protect it with... *drum rolls* Home Insurance!
What's new right?
In the event of fire, theft or natural disasters, Home Insurance protects both your physical housing space and the contents within, and it is not limited to only the structural features - the building, fixtures, fittings as well as renovations and your household content.
If you are staying in a HDB and have a outstanding loan, you would know about the compulsory HDB Fire Insurance, whose current appointed insurer is FWD Singapore. Or if you are paying your outstanding HDB Loan using your CPF, you would need the Home Protection Scheme, a Mortgage Insurance. You may think, all these insurance for only one house, why so extra? Isn't one enough?
So, what is the difference?
Compulsory for all HDB Owners with outstanding HDB Loans
Coverage: Repair works in the unfortunate event of a fire
Term Period: 5 years (Renewal every 5 years)
Coverage: Internal building, fixtures, fittings as well as renovations and your household content in an event of theft, fire or natural disasters (not that Singapore would have, but just in case) - It includes your domestic helper or
Coverage: Paying of Mortgage loans in an event of death, total & permanent disability
In other words, you can say that Fire Insurance is a subset of Home Insurance, but both helps to insure against the financial burden in the case of a fire or natural disaster. On the other hand, Mortgage Insurance covers another areas as it serves as a protection in the case of death.
Be it living in or renting your house out, having a Home Insurance plan would serve as a good safety net. Because given that you accidentally left the stove on or that your electricity socket caught on fire, all the money put into decorating and getting your furniture will go down the drain. Not only that, you have to spend more money to repair and renovate.
I mean, you get to change up some styles that you previously didn't like as much but the cost, is hefty. If you don't want to pay double the amount for nothing, it is highly recommended for you to get a Home Insurance.
After getting your keys and rolling that pineapple to your new house for HUAT AH, you should head down to get all 3 insurance as they complement each other well in providing a very comprehensive coverage for your home in an unexpected unfortunate event.
You should determine the amount of coverage relevant to you, considering all the big ticket items or possible valuables. Take note not to underinsure your policy! Under Insurance is a common mistake for most people as assets have paper value, and given that your policy coverage is lower that what it actually is, you may get penalized in terms of reduced reimbursement when you apply for a claim. Don't say I didn't warn you!
Here is the current list of Home Insurances with reviews that Singaporeans can compare before buying the Home Insurance of your choice:
We have made a comparison between all the home insurances that we have considered in the above list and have summarized the findings below:
Best and Cheapest Home Insurance Plan in Singapore: NTUC Income’s Enhanced Home Standard Insurance
Best Value Home Insurance Plan in Singapore: AIG Enhanced Public Housing Contents Insurance
To help Singaporeans make smarter personal finance decision, here are some tools to help you:
If you'd like more information you can
Check out our article(s) which will help you to pick out the best home insurance:
If you have questions about which home insurance to get after reading our Real User Reviews, why not ask our community of experts and experienced members at Seedly QnA? Best of all, you can even ask your questions anonymously if you're really, really shy!