What is Home Insurance?
SCDF responded to a total of 4,485 fires in 2012 and 2,125 fires between Jan to Jun 2013 (link). Of the 2,125 cases, 1,541 cases were from residential premises.
Most HDB in Singapore are insured under HDB fire insurance, but it covers ONLY the structure of the building (i.e. wall and pillars). It does NOT include renovation, household contents, 3rd party liability, etc. Hence, it is important to have a home insurance to insure against an unfortunate event such fire, theft and third party liabilities to your neighbour.
What to look out for in your home insurance?
- Named Perils vs. All Risk – Name peril covers a particular risk that is specified in the insurance policy but will not cover other risks (i.e. smoke from neighbouring unit) that are not stated in the policy. All risk cover will usually cover accidental loss of or damage to your building and contents as opposed to just named perils.
- First Loss vs. Average Clause – First loss policy provides protection up to the maximum sum insured without penalising for under-insurance. Average Clause, on the other hand, will take into consideration of the total loss upon a claim.
In general, the most comprehensive coverage will be a policy that provides all risks coverage with first loss clause. It starts from $120 per annum with GST
A policy that covers name perils with average clause is most affordable is but the coverage is limited. It starts from $53.50 per annum with GST
In general, we recommend a home insurance that provides all risks coverage with a first loss clause as it is most comprehensive and it is not very expensive. It gives you a peace of mind under fire caused by the neighbouring unit.
To ensure that you are insured in the event of theft.
To ensure that you are insured in the event of a fire.
To ensure that your liability is protected if the smoke from your unit causes damage to your neighbour.