Compare Home Insurance Policies in Singapore 2020

Frequently Asked Questions

What is the difference between HDB Fire, Mortgage and Home Insurance?

1) HDB Fire Insurance is a compulsory home insurance policy which only insures the internal building structure, fixtures and fittings. 2) Mortgage insurance is a policy which insures the mortgage (home loan) in event of death of the breadwinner - It provides the surviving spouse with peace of mind, knowing the mortgage will be fully paid up. 3) Home Insurance provides coverage for the building, fixtures, fittings as well as renovations and your household content. Hence, its a good idea to pair the compulsory HDB Fire Insurance with a home insurance plan so that there's comprehensive coverage for your home

How much building and content coverage would I need?

To prevent under insurance, we would have to know how to access how much coverage is necessary. For building, the coverage needed should be the total cost to rebuild or reinstate the property plus the professional fees and removal of debris. As for household contents, the replacement value or worth at the time of the inception of the policy may be taken as the coverage needed.

Can I purchase home insurance if I am going to rent out my home?

Yes, but it’s worth noting that certain risks such as malicious or deliberate damage by tenants are not covered under the policy. Alternatively, some insurers have landlord home insurance policies catered for this need.

Will I ever need to change my home insurance coverage?

You should review your coverage at least once a year or whenever there’s a significant change in your home or its contents. For example, if you’ve just built your dream walk-in wardrobe or if you’ve just kitted out your living room with a home theatre system, you should probably consider reviewing your current policy to ensure your existing tier of coverage is enough to cover the cost of replacing some of your new big-ticket items.

How do I compare home insurance policies?

With so many home insurance plans out there in the market, choosing the right plan can be a challenge. We recommend that you first determine the kinds of coverage that are relevant to you. Then, estimate the adequate amount of coverage you need, while making sure you are not under-insuring your property. We reiterate this point because under-insurance can cost you a lot. For example, if you purchase a S$20,000 coverage on a S$40,000 home, your insurance company will determine that your property is under-insured by 50%. In this case, you will get paid only S$2,000 even if you file for a claim for a loss of S$4,000, because you will be responsible for the remaining portion (50%) of the claim. Finally, we recommend that you single out policies that delivers high value, suits your situation, and offers high sub-limits on items that are important to you. Compare Home Insurance Plans on MoneySmart to find the one with the best price and coverage level for you!