Home Insurance protects your home structure and most valuable contents from damage and destruction. For instance, destruction to your home could be the result of unexpected disasters such as fire, flood or theft.
You need to secure your home from unfortunate events before they happen. However, it’s equally as important to understand the types of policies under Home Insurance.
Home Insurance policies are majorly categorised as Insured Perils Policies or All Risks Policies.
Insured Perils Policies
These provide protection to homeowners against accidents and losses due to certain incidents. These should be specified in the policy at the time of its inception.
Regular insured perils include:
- Impact by road vehicles,
- Damage caused by an aircraft,
- Bursting or overflowing of water tanks or pipes,
- theft by violent or forcible entry,
- malicious mischief,
- specified natural disasters such as floods,
- volcanic eruptions,
- riots and strikes.
Any loss or damage that has not happened due to the mentioned incidents will not be covered under this type of policy.
All Risks Policies
On the other hand, All Risks Policies are designed to provide wider coverage to the homeowners. These types of policies can be applied to a wider range of scenarios with few predetermined exceptions.
They are generally more expensive as they cater to all your requirements. Although it covers more accidental damage, it’s still a longer list of exclusions compared to Insured Perils Policy.
In Singapore, it is a little easier to buy Home Insurance for your property. Most insurers do provide these services on their online platforms. They might also not have a lot of conditions associated with providing insurance to the homeowners. This makes the comparisons between the policies and the overall process a lot easier than before.
Insurers in Singapore offer a variety of policies. This ranges from a basic ‘no cover’ to a detailed coverage that includes protection to pets, compensation against the loss of credit card, etc.
The level of protection required depends on the type and kind of property you want to cover under the insurance scheme.
The coverage will differ depending on the type of home you want: – HBD Flat, a private apartment or a landed property. Similarly, the sum assured and your coverage limits depend on the amount of premium you are paying for the policy.
Most of the home protection insurers provide the following coverages:
- Building Protection
- Damages or losses to your building caused by fire, flood or any other predefined events;
- Contents Coverage
- Coverage of loss or damage to the household items and things belonging to you.
- It also covers your family due to unforeseen events like fire, flood, natural disasters, burglary, or any kind of malicious activity of an outsider.
- Accident faced by the homeowner or his family
- Covers you and your family against any permanent disability or death caused by an accident.
- Personal Liability
- Provides coverage for situations where you might be held responsible for paying the compensation for property damage or bodily injury occurring within Singapore.
- Alternative Accommodation
- This coverage covers you up for certain days while you are in a temporary accommodation and your home is getting renovated after a major happening at your place.
- Other Benefits
- Insurers provide coverage for various other benefits like the removal of debris, coverage against any mishap with your pets, fire extinguishing expenses, loss of money or credit/debit cards etc.
Every Home Insurance policy might be slightly different and depends entirely on the Home Owner’s requirements and 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.