Types Of Home Insurance In Singapore: Which Is Better For Your Home?
Your home likely stands as one of your most valuable assets, making it prudent to safeguard it through the purchase of home insurance. While not legally obligatory, unlike fire insurance for HDB flat owners, it is highly advisable to secure your home with a suitable insurance plan. As Singapore sees an increase in residential developments, especially HDB/BTO flats, the demand for property insurance is expected to rise according to GlobalData’s latest report.
Explore this guide for insights into home insurance and find the best plans in Singapore based on your property type.
Key Differences In Home Insurance For HDB & Private Properties In Singapore
| HDB | ECs | Private Condominiums | Landed Homes or Private Property without Strata Title | |
|---|---|---|---|---|
| Mandatory insurance | HDB fire insurance | Home insurance and fire insurance are optional | Home insurance and fire insurance are optional | Home insurance and fire insurance are optional |
| Building coverage | Usually covers damage to the building structure only | Regular or high-value insurance plans are often adequate for such properties | High-value insurance plans are usually more suited for such properties and the building coverage limits are often higher than the regular homeowner's insurance policies | |
| Perils coverage | Typically covers specific basic perils like lightning and fire as defined in the HDB fire insurance policy | Regular home insurance coverage offers a wider range of perils than HDB fire insurance, including burglary, water damage, and personal accident coverage | High-value home insurance plans offer a wider range of perils than regular plans, including burglary, water damage, and personal accident coverage | High-value home insurance plans offer a wider range of perils than regular plans, including burglary, water damage, and personal accident coverage |
| Contents coverage | Typically excludes coverage for personal belongings or home contents, unless homeowner opts for regular home insurance which is more comprehensive than just HDB fire insurance | Regular home insurance coverage includes personal property, but limits may be lower and may require additional endorsements for high-value items | High-value home insurance provides higher limits for personal property, including valuable art, jewelry, antiques, and collectibles | High-value home insurance provides higher limits for personal property, including valuable art, jewelry, antiques, and collectibles |
| Cost of premiums | Generally has a low premium cost, as it provides very limited coverage | Although higher than HDB fire insurance, regular insurance plans offer affordable premiums, which are suitable for standard homes and possessions | High-value home insurance plans charge higher premiums due to increased coverage limits and additional protection for highly valuable assets | High-value home insurance plans charge higher premiums due to increased coverage limits and additional protection for highly valuable assets |
| Personal liability coverage | Does not usually include personal liability coverage | Regular and high-value home insurance provide personal liability coverage, protecting against third-party claims, however regular home insurance have lower limits than high-value home insurance plans | Typically offers higher liability coverage limits, essential for high net worth individuals | Typically offers higher liability coverage limits, essential for high net worth individuals |
| Deductibles | None | Typically offers standard deductibles | Higher deductibles may be available, which can help lower premiums for those willing to assume more risk | Higher deductibles may be available, which can help lower premiums for those willing to assume more risk |
| Appraisal requirements | Determined by HDB | Appraisals may be necessary for very high-value items, but not as common | May require appraisals for high-value items to establish their worth accurately | May require appraisals for high-value items to establish their worth accurately |
| Risk assessments | Standard risk assessment based on regulations determined by HDB | Standard risk assessment based on typical home insurance factors | Tailored risk assessment considering the unique risks associated with high-value properties | Tailored risk assessment considering the unique risks associated with high-value properties |
What To Consider When Buying Home Insurance in Singapore?
Types of coverage
Structural Protection and contents coverage are the two key types of coverage. Do verify that your policy includes coverage for your home's physical structure against perils like fires, floods, and natural disasters, as well as coverage to safeguard your personal possessions, such as furniture, electronics, and valuable items, against theft, damage, or loss.
Personal liability coverage
This insurance extends protection in situations where you might be held responsible for injuries or property damage to others on your premises.
Policy exclusions
Take note of any exclusions outlined in the policy. Common exclusions might encompass damages resulting from wear and tear, acts of terrorism, and specific natural disasters.
Coverage for special items
If you own valuable assets like art pieces, antiques, or high-end electronics, investigate whether additional coverage is necessary for these items.
Deductibles
Comprehend the deductible amount, which represents the sum you're responsible for before your insurance coverage becomes effective.
but raise your out-of-pocket expenses.Replacement cost vs. Actual cash value
Determine whether the policy offers replacement cost coverage (replacing items at their current market value) or actual cash value coverage (considering depreciation). Replacement cost coverage is typically more comprehensive but may come with a higher premium.
Additional coverages
Investigate available supplementary coverages tailored to your requirements, such as coverage for loss of use (covering additional living expenses when your home is uninhabitable), medical payments, and protection for home systems.
Discounts
Inquire about any available discounts, including multi-policy discounts, security system discounts, or rewards for being claims-free, which can contribute to lowering your premiums.
Claims process
Grasp the process of filing a claim, encompassing how to report a claim, the necessary documentation, and the anticipated timeline for claim resolution.
Frequently Asked Questions
Should I get home insurance?
- It is highly recommended to get home insurance as home insurance provides your home with certain levels of protection against fire/water damage, vandalism and related risks, coverage for loss/damage or theft of personal belongings, personal liability coverage, temporary housing benefit, and for the fulfilment of certain mortgage requirements.
Does HDB fire insurance cover home contents?
- No. HDB fire insurance has limited coverage unlike regular or high-value home insurance plans, thus HDB fire insurance typically excludes coverage for personal belongings or home contents, unless the homeowner opts for regular or high-value home insurance which is more comprehensive than just HDB fire insurance.
What is personal liability coverage in a home insurance plan?
- Personal liability coverage is one of the aspects which is often included in home insurance plans. Personal liability coverage protects you and your family members/joint occupiers if you're legally responsible for injuries to others or damage to their property that occurs within your HDB flat or EC or private property.