Should you insure the biggest purchase of your life?
Do you use multi-plug adapters at home?
Do you charge any electronic gadgets (e.g. mobile phone, tablet) overnight?
Do you leave some appliances turned on (e.g. fridge, router, fan, dehumidifier) even when there is no one at home?
Do you keep any valuables (e.g. your jewellery, family heirlooms, IT gadgets, designer items) at home?
Does anyone house-sit for you when you are overseas?
If you answer yes to any of the first 4 questions, and no to the last question, then home insurance is definitely necessary for you and even compulsory if you stay in a HDB flat. Let’s take a look at some of the insurances available for your home.
Mortgage Insurance ^1
Mortgage insurance pays out a lump sum of money that is then used to offset an outstanding home loan in the event of death, terminal illness and/or permanent disability of the insured.
Why is it important?
It protects homeowners & family members from losing their home when life throws a curveball.
If you’re staying in an HDB, Home Protection Scheme (HPS) ^2 is a compulsory insurance if you are using your CPF to pay for your flat. However, you can apply for an exemption if you have existing life insurance that covers your housing loan.
Other than HPS, you also have the options of private mortgage insurance and term life insurance. And each of these 3 insurance schemes have their pros and cons. ^3
It is another compulsory insurance scheme for flat owners with outstanding HDB loans. ^5 According to the statistics from Singapore Civil Defence Force (SCDF) ^6 , more than half (>900) of 2022’s fire calls came from residential buildings (HDBs, condos, landed houses, dormitories), mostly because of unattended cooking and electrical reasons (chargers exploding, faulty electrical outlets or appliances).
Pros:
Covers your home repair works (structural & fixtures) in the event of a fire
Covers your losses/damages resulting from a fire Affordable premiums starting from $4.87 for 3 room HDB for 5 years ^7
Cons:
Renovations including build-in furniture are excluded.
Home contents such as personal belongings, electrical appliances and moveable furniture, are also excluded.
If you own IT gadgets, designer items, or jewellery and timepieces, then this might be a necessity for your home. Home contents insurance is an insurance that covers the contents of your home in the event of theft, fire or any unfortunate events.
Pros:
Covers renovation and fittings (depending on the insurer)
Covers all personal belongings in the house (subject to claim limit)
Cons:
Have to keep a copy of invoices/purchase receipt of the items/assets that you want to protect
Coverage usually excludes properties unoccupied for more than a period of time. E.g. 60 days.
The last thing we want is to spend a fortune on our home and not be able to claim for any losses in the event of unforeseen circumstances. Speak to Chloe to determine what types of home insurance will be the best fit for you.
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