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Property is one of the most valuable non-life assets a person can own. Sometimes, your home can feel impenetrable, providing you with safety and security, but it is also susceptible to damage, loss and theft. Home fires make the headlines every year, caused by all sorts of things, from exploding PMDs to lighted cigarette butts.
Fire insurance is a form of property insurance, which protects you in the event of damage and loss caused by fire. A basic form of fire insurance may already be part of your property insurance policy, but additional coverage can be purchased for added protection. Fire insurance aims to support the costs of repairs, replacement or reconstruction of property over the maximum amount established by the property insurance policy.
Any home financed by an HDB loan is automatically enrolled in the HDB Fire Insurance Scheme. The scheme covers the cost of reinstating damaged internal structures and fixtures, as well as HDB-built areas, such as corridors and balconies. According to HDB, the current appointed insurer for the HDB Fire Insurance Scheme is FWD Singapore Pte Ltd and the insurance is valid for a 5-year period, renewed every 5 years.
The costs of premiums are as follows (valid until 15th August 2024):
For strata-titled private apartments or homes (e.g. condominiums or townhouses), note that the Management Corporation (MC) of your development is responsible for protecting the buildings and common property from fire damage. Your monthly maintenance fees would then cover the premiums. For landed homes or homes without Strata Titles, you have to purchase your own property insurance and make sure you cover against fire damage.
That said, fire insurance is not to be confused with complete home insurance in the event of a fire. Fire insurance only covers damages for the structure and internal fixtures caused by fire, smoke and water. Such schemes do not cover the loss of the contents of your home, including your personal items, appliances, fixtures, kitchenware, furniture and more. In case of an accident, the cost of replacing these can add up quickly.
Luckily, home insurance is quite affordable compared to the cost of your home.
When you purchase home insurance, often you’re asked to decide if you want an “insured peril” or “all risks” policy.
Insured Peril Policies cover your home against specifically listed risks (aka perils) in your policy. Such risks include basic risks like fires, floods and housebreaking.
All Risks Policies cover every risk that it does not explicitly omit. A wider range of risks are covered, including earthquakes, hurricanes and tornadoes.
Regardless of which you decide is best suited for your needs, a good policy will cover things like:
*not an exhaustive list
Moreover, most insurers have a 24-hour hotline to call or an online claim process for quick claims process. Just remember to keep your receipts in the event of an emergency, and make sure your home is reasonably maintained. Damages due to your own negligence may not be covered!
Remember that only insurance agents or the staff of insurance brokers can sell general insurance. Some forms of general insurance, such as travel insurance, can be purchased directly online.
Whether it’s for yourself, your home, your pet or your car, general insurance can play a vital role in covering unforeseen circumstances and protecting the things you value... and sometimes love, too!
PROPERTY, FIRE AND HOME CONTENTS INSURANCE TYPES. COMPLETED. ✅
Sources:
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