Whilst it may be common knowledge to many, it’s always worth repeating that home insurance is not included in the HDB (Housing Development Board) Fire Insurance Scheme.
 

Reminder: Your HDB Fire Insurance covers the cost of restoring damages to the building built by and provided by HDB, i.e., internal structures, fixtures, the original electrical wiring, and water pipes which were there when you got the keys to your place. What this excludes, are the contents of your home, i.e. furniture, renovation works, fittings and personal belongings.
 

This means there may be many overlooked costs when unexpected events occur – from paying for damages whether to the home or through third-party liabilities, to arranging for alternative accommodations should your home be inhabitable or even recouping on personal or precious belongings, all of which can pile into quite the financial headache.

Yet, many Singaporean homeowners still forgo home insurance¹, so here are a few precautionary situations where one might be glad they’ve insured their safe haven.

Timber!

Singapore is known as the Green City, but if that beautiful, old Angsana tree outside your window gets a little too close for comfort and causes damage when it falls against your property, things can get messy. We’re talking broken windows, damaged furniture, and more greenery than you’d expect in your impeccable home!

With this particularly prickly peril, having home insurance might mean that your insurer could help you recover out-of-pocket expenses for property or content damage from such an unforeseen incident.

Rain, rain

Rainy spells do occur in our sunny island set by the sea, and they’ve been the reason for increased cases of flooding. Rain-related water damage may seem far-fetched for many high-rise dwellers, but it is concerning for homeowners of ground-floor units, landed properties and homes with a balcony.

Being covered by a reputable insurer can not only help ease the pain of recouping all your losses alone but also cover the costs of looking for a place to dry off while repairs or clean-up is underway.

Ring the alarm

No matter how safe we feel in our homes, we should never take our safety for granted. The most unexpected things can happen during a theft or break-in and whether or not justice is served, there’s no telling if our possessions will be returned.

While nothing can truly replace precious possessions that are stolen, home insurance can help homeowners in case of a break-in, helping to recover from damages such a broken locks or windows, stolen household contents and valuables. You may also get reimbursed to some degree for missing or damaged items ranging from your laptop, home appliances of collectibles such as artwork.

Legal liabilities

Your liability to third parties is a crucially overlooked factor in home insurance and can burden you with unexpected medical bills or repair works.

Here are two examples:

For both situations, being covered by a reputable home insurer means they can step in to help cover part, if not all the costs you have to pay to third parties seeking reparations – saving both your wallet and possibly your relationships with them.

In a pinch

There may be cases where your home becomes inhabitable temporarily, so you’ll need to rent or live elsewhere, perhaps for some time.

Being covered by home insurance helps ease the burden of covering added costs of your alternative accommodation, from hotels to rentals – some insurers also provide cash allowances so you can purchase necessities while you’re away from the comforts of home.

Squeaky clean

After an infectious disease outbreak, the last thing any homeowner wants to think about is cleaning up or worse, a less-than-thorough clean-up that could result in another infection at home.

Jobs like this are always best left to professionals and home insurance might alleviate these expensive if you, your family members or even your domestic helper suffers from an infectious disease which requires thorough home disinfection before it’s safe to live in again.

If you’re on the fence about getting home insurance before reading this article, we hope that our rundown of possible home situations has encouraged you to speak to your provider about it.

Choosing a home insurance plan boils down to what is included in the coverage and how much your insurer can do to mitigate potential losses – a simple move, considering that the people and possessions in your home are worth protecting, after all.

^Notes

^{1: Source: The Straits Times©, Singapore Press Holdings Limited. Extracted with permission. “Fire insurance alone does not cover full cost of fire in one’s home: Insurers”, 25 February 2022.}