Home Content Insurance and Home Insurance are two different forms of Insurance. It is important to know that they do not always cover the same things. Usually, people in Singapore take a combination of both. But if you opt for either of the two, you should definitely understand the difference Home Content Insurance and Home Insurance.
What does Home Insurance cover?
Home Insurance, also known as Building Insurance or Homeowner’s Insurance provides cover on the structure or building of the house. This includes the floor, walls, bricks, windows and roof. In other words, it covers all the immovable structures of your home. It also includes the permanent fixtures and fittings such as baths and toilets.
Permanent fittings like wardrobes, fitted kitchens and other decorative aspects are also included in this type of insurance. While it usually also covers gardens, garages and greenhouses, you should always better to confirm it with your insurance provider.
What if you build an extension to any part of your house? Talk to your insurance provider to make amendments on your insurance coverage to reflect the changes. It is a necessity if you are taking a home loan.
Home Insurance is a life saviour in case your home gets destroyed or damaged by a natural calamity or disaster. Your home will be insured against fire, flood, torrential rain, weather nuisances etc. Home insurance is only for houseowners, it’s not available for rental properties.
What about Home Content Insurance?
On the other hand, Home Contents Insurance, also known as Household Contents Insurance or Household Goods Insurance covers all the household goods that are not covered by Building Insurance. It includes everything including television, home electronics, furniture, precious jewellery, valuable artefacts, carpets, clothes, shoes as well as any garden furniture or tools etc.
Make sure your policy covers the garden tools and equipment if you need it. If you want to stop thinking about the loss of replacing things you own, go for a Home Content Insurance instead. This helps to safeguard yourself from the stress of losing those valuable things and start living a stress-free life.
Content Insurance is not a legal requirement, but it does help you recover all your valuables in case of theft and damage from any natural disaster.
While applying for Household Insurance, you need to discuss and disclose the value of all the items you intend to cover under the insurance policy. Try to list down all the important items of your home which you can’t afford to lose and which will cost tens of thousands of dollars if replaced again.
Unfortunately, most people won’t get the actual amount claimed by them from the insurance companies. This usually happens when they underinsure their home contents at the time of content disclosure and evaluation. Make sure that you evaluate the goods carefully while getting the contents insurance.
So which policy is best for me?
A great way to know the difference and importance of each policy is by “turning the home upside down”. Anything that falls out would be covered under Content Insurance.
The structure which remains intact even after turning it upside down would be covered under Home Insurance. In many cases, a combination of both Content and Building Insurance works best, as it covers everything from structure to contents. In case you are renting a house, check if the building is insured by the owner or not. It’s not a mandate, but for your own satisfaction.
While choosing a coverage for your peace of mind, choose wisely and select the policy which caters to all your needs.
*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.