Fire Insurance: Get Better Coverage Using Your Home Insurance

All HDB flats in Singapore are covered under a mandatory HDB Fire Insurance provided by FWD. The premium ranges from S$1.62 to S$8.10 for 1-room flats to executive units. The policy does not cover your personal home contents, thus the payout will only be used to pay for the repairs of structural damage, fixtures and any other HDB assets.   In the event that an HDB flat is burned down, the owners will be left with plenty of financial burdens. Rent for temporary accommodations, renovation and replacing of furniture and personal items will rack up a big bill. How to avoid such a situation? Purchasing a home insurance will cover the loss of personal content and other cost incurred in the event of a fire.    

What to Look Out For?

Flat Size

Depending on the size of your flat, the insurance premium will differ. Do compare your flat size among the providers to find the best price if the price is an important factor. 

Income Home Insurance

Income home insurance has one of the lowest premiums payable for smaller flats. For 3-room flats, the premium is 58% lower than the market average and offers great value for the price.   

Coverage

Some home insurance policies may offer attractive premiums that seem too good to be true. This is achieved by cutting out some of the coverage that you may find may need. Look into whether you can live without having specific coverage and make a sound decision on your home insurance.   

Etiqa Tiq Home Insurance

Etiqa’s Tiq Home Insurance does not have the lowest premium price as compared to some alternatives. However, If you opt for the 3 and 5-year plans, Etiqa will offer S$800 of emergency home assistance coverage for locksmith, plumbing, electrical and pest control services. Furthermore, Etiqa offers S$5,000 of emergency cash service that will be deposited into your e-wallet within 1 business day. With all these payouts, it will be easier to return back to normal life without much financial burden.   

AXA SmartHome

AXA SmartHome offers some interesting coverage that is not commonly seen. This plan will cover home renovation, home content and allows you to customise how you utilise your claims. AXA also includes a professional consulting fee in case your property gets damaged.   

Others

Beyond the common coverages, you may find yourself in situations where you need additional coverage. Pet owners may find themselves looking for policies to insure their pets in the event of a fire. Personal liability may be considered for fear of the fire spreading and policyholders needing to compensate for the damages incurred by their neighbours.    

Rent vs Own

For individuals renting a property, they should consider purchasing home insurance that is geared towards insuring their personal content. Landlords will benefit from home insurance that covers more of the renovation costs and homeowners should be concerned about both aspects.   In conclusion, home insurance is important for both homeowners and renters to protect themselves from financial woes after a fire. With housing being one of the biggest assets for an average Singaporean, spend a bit more on your insurance to be well protected.