Your Homeowners Insurance policy should cover every aspect of your property, including the walls, garage, swimming pool, driveway, and more. To accurately determine the replacement cost, it's recommended that you consult with an experienced and reputable valuer who can consider all the relevant factors. These factors include the location of your home, building materials, design, finishes, and other considerations that may impact the replacement cost.
Please note that your Homeowners Insurance policy does not cover the outstanding balance of your home loan, or any losses incurred due to the loss of personal belongings.
It's important only to purchase insurance that matches the current replacement value of your home. If you purchase more insurance than necessary, you'll end up paying a higher premium than needed, as the insurance company will only settle the amount equal to the most recently updated replacement value of the home. On the other hand, if you don't have enough coverage, you'll pay a lower premium for comprehensive insurance but end up underinsured. If you need to make a claim, there will be a shortfall between the insured amount and the property value, and you'll need to pay the balance from your pocket.
In terms of Personal Insurance, there are different types, and we will focus on three crucial ones.
- Building Insurance
This insurance policy offers protection for the building's structure, which may also include coverage for other structures on the property, like garages or flatlets. These structures are vulnerable to loss or damage from theft, fire, storms, and more. It's important to insure all fixtures and fittings are attached to the building.
- Contents Insurance
This insurance covers all movable assets inside the building, such as home appliances, furniture, curtains, and clothing. However, it does not cover fixed fittings like fitted carpets and taps. Contents Insurance protects against loss or damage caused by theft, burglary, accidents, malicious damage, as well as fire, storm, and flood damage.
- Personal Valuable Insurance
Our insurance policy covers all personal belongings, including cell phones, laptops, bicycles, surfboards, clothing, handbags, and jewellery. For items that are not specified, we offer coverage up to a certain amount for a standard list of general items under the unspecified ‘All Risk’ section. However, our specified items policy allows you to list high-value items such as cell phones and laptops for coverage up to a certain amount specified in your policy.
As a homeowner, getting insurance brings peace of mind as you'll be covered in case of unexpected events. The benefits of having Homeowners Insurance include protection against loss or damage due to burglary, accidents, or disasters without facing financial ruin. With comprehensive insurance, repairs can be done soon after an event rather than waiting until you can afford it. Some insurers offer bonuses for no claims and temporary accommodation if your house is uninhabitable.
To fully understand your policy, speak to your broker about the terms and conditions, as most policies have explicit exclusions. These exclusions can range from theft claims requiring forcible or violent entry, damage caused by pets, neglect of maintenance leading to loss or damage, to leaving your home unoccupied for a significant period.
