Types of insurance every homeowner should know about
Your home is one of the biggest investments that you make in your life. Property prices in Singapore are one of the highest in the world. Considering this, to most Singaporeans their homes are not only an important purchase but also an expensive one. Once you buy a house, you do everything to make your home feel warm and welcoming. You browse various websites and go through a number of magazines to understand current home interior and renovation trends. You also take time to choose your interiors and furnishings to make sure you have the best. Therefore insurance is very important after you own a house.
But, what if one day, a massive fire due to short circuit or a natural calamity destroys your home that you built with so much love? Not only do you lose your beautiful house but you also face a huge financial contingency. After all, your home and all its contents are destroyed, and you will have to shell out thousands of dollars to renovate it and replace all the destroyed contents. However, if you had insurance, the situation could have been different and much better.
While Singaporeans invest a lot of effort, time, and money in buying and building their home, they often overlook home protection. Often they live with the notion that nothing will ever happen to their house. But, incidents that threaten a property are not uncommon. Hence, you should insure your property.
Here are some types of insurance for home owners that every Singaporean who owns a property should know about:
In Singapore, fire incidents occur in almost 68% of residential premises as per a 2016 fire incident statistics. That’s a huge figure. Fire can reduce a structure to ashes. And, fire can occur due to various reasons including short circuit, gas pipe explosions, lightning, riots, and more. Hence, fire insurance is one of the most basic protections that every home owner should consider. The insurance covers a lot of perils related to or causing a fire breakout.
But, fire insurance will only pay for the structural damage to your home and not for any damage to the contents inside. For instance, it will pay for the damage to your flooring but will not pay for damage to your jewelry. Also, note that the insurances pays for structural damage to original fixtures and any replacement of the original fixtures. For landed or income-generating properties, the inclusion extends to rebuilding your home. In Singapore, private properties and HDB flats come with some form of coverage. But, you can opt for additional cover if you require. Landlords have to get fire insurance on their own.
Home Contents Insurance
As the name suggests, home contents insurance cover everything from your renovations to household items from unfortunate events. Home contents insurance is not mandatory for home owners but must be seriously considered as it bestows a lot of benefits on the policy holder. Any renovations like new flooring or improved wardrobes are covered by this insurance. In addition to this, it covers most household contents including furniture, appliances, clothing, jewelry, electronics and more. Furthermore, the insurance cover also acts as your saviour in times of crisis. Policyholders can get financial assistance in the form of a stipend or reimbursement for temporary accommodation. Whether your home has been subjected to theft or fire, this type of insurance can truly save you from a financial downfall. Make sure you keep reviewing your policy and adding any important improvements or purchases to ensure they are covered.
Mortgage and Personal Liability Insurance
Home mortgage is one of your biggest liabilities. And, not being able to clear that can result in adverse consequences. The bank will hold you liable and can sell of your property to recover the loan, leaving you and your loved ones without a roof over your head. Mortgage insurance can prevent this. If something happens to you (like an accident or critical illness) due to which you are unable to pay off your mortgage, then the insurance can help. You get a lump sum payout to enable you to clear your mortgage.
Another important insurance you should consider is the personal liability insurance. Imagine, your neighbor get’s injured in your house (for example, due to a faulty switch). Then they have the legal right to take action against you for any injuries they sustain. And, if you’re found liable, you will have to pay for the injuries. This might seem like a minor issue, but is not. Medical costs have also been on the rise. And any liability for injuries can be a burden on your finances. Personal liability insurance can save you from such unforeseen situations.
Insurances protect you from going into a financial crisis. And, it is not just your health that can cause a financial disaster, but also damages to your home and other properties. So, if you haven’t insured yet, then it’s time to consider these types of insurance for home owners.
In the event, you require cash to settle your home misc such as utility bill, insurance bill and so on. You ought to connect with 1st LG Credit licensed moneylender to grab your need.
1st LG Credit Pte Ltd is located in Lucky Plaza, Orchard Road. To find our office, 304 Orchard Road #02-29 Lucky Plaza Singapore 238863. If you are still unable to reach our office, please call us at +65 6299 6654. We established since 1991 as Lekshmi Moneylender,