Do You Need to Buy Home Insurance? 7 Home Insurance Things to Know

Home insurance in Singapore is a type of insurance policy that provides financial protection for your home and belongings against various risks such as fire, theft, natural disasters, and accidental damage. It typically comes in two main types - home fire insurance, and comprehensive home insurance.

Still can’t wrap your head around home insurance? Basically if you’ve spent a lot on renovations (built-in carpentry, flooring, etc.), you should get home contents insurance to protect your investment. Now, if you own high-value items (luxury watches, jewellery, designer bags, expensive gaming setups), check if they are covered under standard home insurance or if you need an add-on. Aha! Makes sense now? Read on for 7 very basic tips and things you need to know about home insurance.

Fire Insurance

This is a basic requirement for HDB flats and private properties with a mortgage. It covers damage to the structural components of the home caused by fire, but it does not cover personal belongings, renovations, or household contents.

Comprehensive Home Insurance

This is an optional but recommended policy that provides broader coverage, including:

• Renovations and fixtures (e.g., built-in cabinets, flooring, and wallpaper)
• Household contents (e.g., furniture, appliances, and valuables)
• Personal liability (in case of accidents or damage caused to third parties)
• Alternative accommodation (if your home becomes uninhabitable)

So, do I need to buy home insurance now that I own a house in Singapore? It largely depends on your type of home loan/ mortgage If you have a HDB loan, you are required to have HDB Fire Insurance (provided by FWD Insurance). If you have a bank loan, your lender may require you to buy fire insurance from their approved provider.

Homeowners and tenants often get comprehensive home insurance for added protection, especially if they have expensive renovations or valuable possessions. Here's what you need to know about buying a home insurance plan.

Choosing a home insurance plan

When choosing a home insurance plan, check the sum insured for major items such as renovations and home contents is sufficient. See what extra (minor) benefits are included, such as medical expenses, loss following the misuse of ATM or credit cards and the loss of personal papers such as identity cards, driving license and title deeds and documents.

Compulsory HDB Fire Insurance plan

This only covers any damage to the building (that HDB built), and not to the items inside your home (that you built or bought). Home insurance provides protection if there is damage or loss to the contents inside your home through unfortunate events.

Assess the value of your home’s contents

Take an inventory of all your belongings and renovations so you can assess the value of your home’s contents. This will help to determine the amount of home insurance coverage you need. The higher the value, the higher the claim limit you will require.

Home insurance deductibles and excess

These are general insurance terms that are used interchangeably. They refer to a specified amount of money you have to fork out in case of a claim, before your home insurance policy takes over. Obviously you want the excess to be as low as possible (so you can claim from your insurance policy more often, right?). However, low excess often means your policy premium will be more costly too. No free lunch in this world.

Renting a property

If you’re renting a property, take out a home insurance too. Your landlord may have a home insurance that protects the building that protects the building, but it may not cover the contents within the space.