Congratulations on getting your own place. Typically people cross this milestone after they get married. but it is typical for people above 35, to fit certain criteria or achieved financial milestones to finally own their own place.
What is home insurance
Home insurance is important because for a relatively small sum of money you can obtain coverage that could save you tens of thousands of dollars in case of any loss or damage.
What your coverage should cover
It is important that you insurance overs any sudden or unexpected damage to your property and its contents by an outside force.
Your policy should have accidental loss or damage to your Building, during Renovation, and to your Home Contents.
Your coverage should include
When looking over your policy you should make sure to check that you have protection for:
- Fixtures & Fittings
- Renovations
- Temporary removal of property
- Replacement of locks and keys after a break-in
- Legal documents
- Removal of debris
- Breakage of fixed glass or mirrors
- Loss of money
- Emergency cash allowance
- Professional fees
- Loss of rent or costs of alternative accommodation
- Temporary storage costs
- Home quarantine cost
- Fire extinguishing cost
- Belongings of guest and helpers
- Pets
- Personal liability
- Family personal accident
You need home insurance as a Landlord and as a tenant
Having good home contents insurance is important because it will cover you for any personal legal liability up to the amount that’s agreed upon. This is important for when you guests over or tenants and accidentally hurt themselves while in your house, as you are considered legally responsible. As a landlord, you hope that your tenants will take good care of your home but there is still a chance of your items being damaged due to accidents or unseen circumstances. Insurance will help protect your home in the effect of this.
Why you might need home insurance as a tenant
While it is not necessary to buy insurance as a tenant if you are renting an unfurnished home then it would be best that you get home insurance that covers your home contents. This is so that you can protect your belongings in events such as a break-in, fire, flood or water damage.
How much should home insurance cost
Naturally, home insurance cost varies depending on the types of coverage and the size of your home. Depending on the coverage, premiums range from $50 to $200 per $100,000 per year. Most insurers offer a 3-year option instead which do have discounts.
How to claim your home insurance
Home insurance claims are fairly straightforward with a 24-hour hotline that you can call to make claims or you can make claims online. The first thing you want to do is to read the terms and conditions in full and ask your Insurance Agent any questions that you might have once having read the terms. I recommend writing down notes on important points, especially if you have tenants, be sure to check if your coverage includes them. Keeping your house in a reasonably maintained state makes it easier for you to claim. When it is time for you to make claims make sure to keep receipts and don’t inflate the claims. If any claim has been falsified, they could reject the entirety of your claim.
There are a few situations where claiming can be a bit tricky. If you are claiming for personal legal liability coverage, this can be restrictive as you would need to move that they were injured in an insured event. Another would be water damage. One of the most common claims made against home insurance in Singapore is water damage. However not all water damage is claimable so be sure to discuss with your agent what type of water damage is and isn’t claimable with your package.
As your money grows your home insurance coverage should grow too
It is common for people to forget to amend their home insurance as they accumulate more wealth. Home insurance works on an average clause basis when you are underinsured your claims will be prorated and you will actually lose money this way.
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