Type of Home Insurance Coverage
Alternative Accommodation
This coverage helps you ease the financial difficulties of a temporary accommodation due to a major incident in your home for a certain number of days. It typically has a daily benefit limit.
Building, Fixtures and Fittings (and Renovation)
This is coverage for rebuilding the building structure as well as any fixture and fittings which comprise part of the building. The current HDB mandatory Fire Insurance is provided by Etiqa does not cover renovation.
Content
As the name suggests, content coverage insures against loss or damage to household items belonging to you, your family or your domestic helpers which you are responsible for. However, it has some exclusions like securities, certificates and pets!
Insured Peril vs All-Risk
A named peril insurance policy covers only what is specifically noted in the policy, whereas an all-risk policy covers everything except what is specifically excluded in the policy, although it is more costly than an insured peril policy.
Personal effects, loss of money and valuables
This coverage insures physical money, valuables and personal belongings against theft by forceful entry. Bear in mind there is always a benefit limit to each category.
Personal Liability
Apart from covering the building structure and contents, home insurance also provides coverage for situations in which you might be legally held responsible for. Personal liability coverage is especially important for renters, as you might be responsible as a tenant.
select a great policy with these tips
Tip 1
Buy the coverage you need! Most of us would already have the compulsory fire insurance which provides coverage for the building, thus it might make sense to look out for a customized home insurance plan which allows you to skew your coverage (and premiums!) towards insuring your home content and renovations.
Tip 2
Did you know that some insurers allow for a discount when you sign up for a longer duration plan?
Tip 3
Don't underinsure when it comes to home insurance! Unlike life insurance, home insurance protects assets that have a paper value, and insurance companies expect your coverage to match the value of your properties. If your policy's coverage is significantly lower than what is actually covered, insurance companies can penalize you in form of reduced reimbursement when you file a claim.
Tip 3
Unlike life insurance, home insurance protects assets that have a paper value, and insurance companies expect your coverage to match the value of your properties. If your policy's coverage is significantly lower than what is actually covered, insurance companies can penalize you in form of reduced reimbursement when you file a claim.