A Guide to Housing Insurance
Posted Date: May 13, 2011
By: Sheena Chua
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It has been said that a piece of property is one of the most expensive purchases a person will make in his or her lifetime. That, plus the fact that almost every other big-ticket item is kept in one’s home, should be reason enough to insure it. But with so many plans available, how do you decide?
(Choose a housing insurance that caters to your needs. Image courtesy of Terence Ong.)
A basic low-cost insurance plan usually covers only the building’s structure. However, it’s not uncommon to get additional protection.
One level up from basic is content insurance. It typically provides coverage for the ‘insides’ of the house, so owners can rest assured that the renovation and improvement works they’ve invested – like that new bathtub-slash-Jacuzzi – will be protected. Some also include personal liability and accident coverage.
The last type is valuable-article insurance, which strives to protect expensive belongings – like luxury jewellery and works of art – from unfortunate situations such as theft or damage. Insurance experts who have spoken to my paper advise homeowners to choose a policy that does not cap the value of items, or to negotiate the value to a more preferable level.
Other options include coverage of the cost of alternative accommodation when your home becomes unliveable due to certain damage. Homeowners should also note that there are different kinds of insurance for different housing types. Owners of HDB flats are required to take up the HDB Fire Insurance, while those with landed properties have to arrange for their own insurances.
On the other hand, MSIG Insurance warns of over-insuring, advising owners to get a valuation of homes and items before choosing a plan. The idea is to not pay more than what is necessary. Great Eastern Life reminds owners that reading the insurance contract carefully is vital; to know what situations are explicitly covered and what the policy is specifically limited to. One tip is to buy different types of policies from the same insurer to reduce combined costs.
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Related Categories: General, Buying Guide - Singapore, HDB, Private Residential
Tags: Great Eastern Life, HDB Fire Insurance, home insurance, house insurance, housing insurance, Housing insurance policies in Singapore, insurance, MSIG Insurance, Tips on buying housing insurance, Types of housing insurance
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