All homes in Singapore have mandatory fire insurance; but this policy only covers the cost of rebuilding the home. Several other issues need to be addressed, such as:
● Cost of debris clearance - After a disaster, there is usually debris such as fallen masonry or destroyed furniture. The homeowner bears the cost of clearing and removing this debris.
● Loss of items in the home - Furniture, appliances, and other items like jewellery or cash are not typically covered by basic fire insurance. Besides replacing these items, your home is likely in need of another round of renovations, after a major disaster.
● Need for temporary accommodation - Depending on the extent of the disaster, your home may be uninhabitable for a long period. It may take anywhere from weeks to months to restore your home, and complete new renovations. During this time, you may need to pay to rent a temporary home, as well as pay for storage of your surviving items.
● Injuries arising from the disaster - Health and life insurance are instrumental in helping with these; but it’s better to also have some form of personal accident coverage to handle co-payment. Some home contents insurance also comes with personal accident plans, for this reason.