In the current era, home may be the most important and expensive a purchase for the younger generations. It is crucial for us to protect our utmost precious asset where we create fond memories with our loved ones. Risk which may arise and could threaten our home may not be the common fire, theft, leaking pipes or worst case repossession by creditors. These 3 types of insurance may be useful for you to protect your home.
- Fire insurance
Fire insurance is the most common coverage for our home. This insurance encompasses a variety of threat which may include gas pipe explosions, water pipes burst, lightning damages, smoke damages, malicious damage and even riots. But bare in mind that fire only compensate for the cost of damage to the home structure, such as fixture replacements, home reconstruct. The original fixtures are the original floor, ceiling, walls, doors, windows and the electric wiring. The benefit of fire insurance is total coverage of structural damages from the previously mentioned threats, but does not include coverage of home contents such as furniture, renovation and personal belongings. To get coverage on such contents, one should adapt an additional home content insurance, mentioned below. If you are living in a high rise apartment or condo such as sol acres, which is a private property, the building structure will be covered by the management’s Strata Title Plan. But for individual home owner for landed property, you would then need to secure a fire insurance policy for your home protection.
- Home content insurance
This particular insurance supplements the above fire insurance by offering total coverage for everything within your home, which includes renovations and household contents. Renovation may be classified as improvements and add-ons in fixtures forms which ones made to your home such as re-tile additional build-in wardrobes and installation of air-conditioners. House hold contents may also include furniture, electronics, clothing and even jewelry. But do take note that the insurance may have a claim limit for your home content. Luxury possessions such as Rolexes, wine and fine art pieces may need another distinct validation from the insurance provider, in order to be included into your policy. Another benefit of home content insurance is the assistance given during the recovery period after the incident. These benefits are given in the form of financial assistance such as stipend and reimbursement for temporary lodging which your home is under reconstruction.
Home content insurance comes in a variety of coverage and one should take the time to understand and evaluate the best coverage option. The premiums that you pay for are directly correlated with the sum insured, and not associated to the size of your home. Therefore, you should pick an insured amount which is realistic and similar to the current cost of restoration and home contents.
It is recommended to regularly review your home insurance policy, as many things can change within a year or two. Home content insurance deserved regular monitoring and reviewing if you have made new home improvement or purchase new electronics.
- Mortgage insurance
Home mortgage may be ones largest liability, and the consequences of not able to service loan are radical. The bank will have the authority to withhold the title deed and possess the right to sell off the property in order to recuperate the owed mortgage. Mortgage insurance lowers the risk to the lender of making a loan to you, so you can qualify for a loan that you might not otherwise be able to get. With mortgage insurance, you get a partial disbursement to carry on repaying your home loan.
So if you were hoping to buy your own private property in, you may need to rethink your insurance plan as it does take a substantial coverage for your home to be protected to ensure a peace of mind.