Home insurance is not mandatory in Singapore. However, that has not stopped people from spending as such to protect their homes from calamities such as fire or theft.
Most Singaporeans know that home insurance offers cover for fire renovation as well as the contents of the home. Contrary to popular belief, such covers also do offer coverage for other items that not many people know about.
Below are the top five interesting facts about home insurance.
Hotel Room Rent
Many may not be aware that an insurance provider is obliged by law to rent a home or hotel for you where required. For instance, should your house be damaged in a fire or from impact of a foreign object, the insurance company must step in and rent a home or hotel for a temporary stay.
The insurance company would, in this case, assume full payment while your home undergoes renovation or as it continues to look for a permanent solution. The insurer will cater for all rental payments in the temporary stay up to the limit as stipulated in the policy.
However, it is important to note that the insurer will not pay for non-lodging costs. In this case, you will have to cater for things like food, beverages as well as laundry and entertainment.
Some home insurance policies do come with pet insurance coverage. In case a home is damaged to the extent that pets are injured or die, the insurer will try to reimburse the loss incurred.
Pets are becoming increasingly popular in Singapore depicted by 32% increase over the past 10 years. It would make a lot of sense for the insurer to provide coverage for pets in the household.
Some insurance providers pay up to S$1000 as a one-time payment for death or medical expenses incurred on a pet because of an accident in a home.
Theft and Break-In Coverage
Most insurance companies offer coverage against theft and break-ins as part of Home Insurance coverage. Home insurance provides coverage for items or belongings stolen or damaged in case of a theft. However, one must provide proof of a forceful break-in.
Theft and break-ins are a grey area in the home insurance business. For instance, an insurer may reimburse any item stolen by friends or family members while one was in the house. However, these covers fail to cover for any stolen or damaged property by a domestic worker.
In addition, insurance would refuse to pay in case of a break in a house that is unoccupied for more than 14 days.
Home Insurance Deficiencies
While most people expect home insurance to provide cover for all items insured, it is not always the case. Should you suffer an injury from an insured event, the insurance company could have limitations when it comes to making claims.
For instance, in case of a fire, insurance may only reimburse in case of a permanent disablement or death. The provider may refuse to pay should it emerge that you will recover fully even while suffering severe burns.
It is for this reason that it is important to combine a home insurance policy with other policies such as a health insurance claim.
Water Damage Cover Restrictions
Water damage accounts for most home insurance claims. Being an island nation, Singapore experiences its fair share of flooding.
Aging housing and infrastructure all but exacerbates the situation. For that reason, it is most insurance company’s policy to offer protection for water damage as a result of flooding.
*The advice offered in this column is intended for informational purposes only and not intended to replace or substitute for any professional, financial, legal, or other professional advice. If you have specific concerns or a situation in which you require professional help, you should consult with an appropriately trained and qualified adviser.