After spending a bomb to put your name to your house, and even more money to make your house your favourite place to return to after a long and tiring day at work, what happens if your house is broken into? Or a fire breaks out and destroys your house? Fear not, if your house is covered by home insurance. Here are 3 things you need to know about home insurance.
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What exactly is Home Insurance?
Home insurance can cover not just your house itself but also everything it contains, both living and non-living. The extent of the coverage depends on the specific policy you opt for. When you purchase a HDB flat, it is compulsory to purchase the HDB fire insurance policy which covers the original fixtures and fittings only. Basic home insurance policies will usually cover renovations, fixtures and fittings, as well as household contents, personal legal liability and alternative accommodation, all capped to a certain amount, depending on the individual policies.
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Is Home Insurance compulsory?
Whether you are staying in a HDB flat, a condominium or a landed property, home insurance is not compulsory. However, it is always good to have a home insurance policy, even if it is the most basic of plans. Imagine if touch wood, a fire breaks out and destroys everything in your house – your renovations, your appliances, your belongings. When such an incident happens, it will not be covered by fire insurance. Instead, only home insurance will ensure that you are protected. With the cost easily adding up, perhaps it would be a wise decision to get home insurance, whether you are simply renting the apartment or the owner of it.
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How much coverage do I need?
Should you go for the cheapest plan or the most comprehensive one? Just how much coverage do you need? Before deciding on a plan to take up, consider the value of your home as well as the items in it. Should you be living in a low-value HDB flat with minimal renovation costs and items off, then a basic home insurance policy with minimal coverage should be sufficient. However, if you are living in a luxury condominium with high-end designer furniture, you will probably need a more comprehensive policy. It is important to look at your housing situation as well as your needs to see which plan best meet your needs.