To protect what you keep under your roof, it’s important to complement your coverage with home contents insurance. This is why you need it: 

What is home contents insurance?

There are three types of insurance for your home, which serve different purposes. Fire insurance covers the cost of damages and rebuilding, while mortgage insurance pays off your outstanding home loan (if you’re disabled or pass on).

The third type of insurance is home contents insurance. As the name implies, this covers damages to items inside your home. Typical examples of these items include:

●      Jewellery and watches

●      Home theatre systems

●      Common home electronics such as laptops, tablets, and even cameras

●      Appliances, including air-conditioners

●      Some types of furniture, such as sofa sets and wardrobes

Besides this, many home contents insurance policies allow you to make claims for leaking pipes, pest infestations, or even having to replace and change locks.

For example: if your kitchen catches fire, then your fire insurance will cover the cost of clearing and rebuilding the room. However, it will not cover the cost of putting in a new stove or fridge, or replacing other damaged furnishings. You’ll need to make a claim under your home contents insurance (if you have one) to cover such costs.

Besides this, some home contents insurance also covers injuries and liability costs. For example if a leak from your home floods a neighbouring unit, you may be liable for the costs - in these instances, you may be able to make a claim from your home contents insurance.

Policies such as Singtel Home Protect provides personal liability cover of up to $500,000, in addition to coverage of up to $40,000 for Household Contents, Valuables & Personal Belongings, and up to $40,000 for Renovations. Singtel Home Protect also includes personal accident coverage for your family, of up to $10,000 per insured person.

Covering the cost of temporary accommodation and storage

If a major disaster occurs in your home, it may not be liveable for a few months, until reconstruction and renovation are complete.

Some home contents insurance policies provide payouts for temporary accommodation, or for the storage of surviving furniture and appliances, on a per-day basis. This can ease the transitional costs involved, when you need to move out and move back in. Policies such as Singtel Home Protect covers up to $2,000 per month for up to 3 months, for additional cost of alternative accommodation or rental income you will otherwise receive from your tenant.

Unlike the other forms of home insurance, home contents insurance is not mandatory 

Fire insurance must be bought, as this is a legal requirement. For mortgage insurance, it is mandatory for HDB properties (under the Home Protection Scheme), and optional for private properties.

home contents insurance however, is not required; but it’s highly advisable to have it. Home contents insurance covers accidents that are far more common than fires (e.g., a leak from your home that ends up damaging the neighbour’s property, thus leaving you liable for damages).

Also, in the rare event of a crime - such as a burglary - fire and mortgage insurance won’t help. Only home contents insurance provides coverage for these situations. 

How much home contents insurance do you need? 

Home contents insurance often has different tiers, from the most basic level of coverage, to the most extensive. The coverage and cost differs significantly between insurers, so it’s important to compare between insurers before making your decision.

As a loose rule of thumb, you should ensure that the total coverage is roughly equal to the value of your renovations and furnishings. If you spent a total of $70,000 on renovations and furniture, for example, then you’ll want to make sure you can claim close to this amount from a home contents policy.

The amount may have to be higher, if you opt to keep certain valuables in your home. For example, if you’re a professional photographer and keep your equipment at home, you may want to buy higher coverage (but check that your claim limit is indeed higher for your camera equipment).

If you want to be as precise as possible, you need to work out the overall dimensions of your property, and use a replacement cost calculation. You can do this with the guidelines provided by the General Insurance Association (GIA) in Singapore.

Some home contents insurance allows for flexibility, as your needs change. Singtel Home Protect Flexi, for example, has an $8 monthly plan, which lets you opt out at any time without penalty. This can save money if you’re moving out for a while, or the home is momentarily vacant while undergoing renovations. 

Can you buy home contents insurance if you are a tenant?

The landlord’s home contents insurance usually does not cover the tenant (although you can check with your landlord to be sure). So if there is a burst pipe and the property is flooded, for instance, the landlord can claim for damages to their furniture - but there’s no coverage for your own belongings as a tenant.

Fortunately, there are home contents insurance policies that are specific to tenants rather than homeowners. Sometimes called renter’s insurance, these are ideal for tenants renting out unfurnished units (i.e., all the furniture belongs to the tenants themselves).

Tenant’s can also buy policies that cover them for liabilities, should someone be injured on the property while they’re living there. 

Home contents insurance is just as vital as fire and mortgage insurance

Over the course of your life as a homeowner, you are more likely to claim from home contents insurance, than fire or mortgage insurance. Burst water pipes and pest infestations are “everyday” hazards, which are much more common than your home catching fire.

Even in the event of major disasters, such as your living room burning down, you’re likely to need a combination of both fire insurance and home contents insurance. It’s not much consolation having your living room rebuilt, if you’re then unable to buy new furniture, redo the renovations, get a new TV set, etc.

Given that most of our valuables are stored at home, it makes sense to protect them with a highly affordable home contents policy. 

Frequently Asked Questions (FAQ)

1. Does home contents insurance cover damages caused by renovations?

Usually no, as damages caused during renovations are claimed from the contractor or design firm’s insurance (including liability costs if a neighbouring unit is affected). Be sure to work only with licensed professionals who have the proper work insurance.

2. How much can I claim for lost or damaged items in the home?

This varies according to the terms and conditions of the home contents policy; but there is a claims limit on certain items, such as lost cash. In general, valuables that far exceed their claim limit (e.g., $10,000 watches when your claim limit for a watch is $5,000) should be insured separately or stored with institutions like a bank.

3. Are items outside the home covered by home contents insurance?

To a limited degree, as some policies allow you to make claims for damages to laptops, cameras, etc. even if the damage occurred outside the home. However, this policy varies between insurers, so do check the terms and conditions first.

Where applicable, the same claim limits will usually apply.

4. Does home contents insurance still apply if I take on a tenant?

Usually, any belongings of your own, that are still in the property, can be covered. However, the tenant’s property - and in some cases the accent claims of the tenant - may not be covered. Do check the specific terms and conditions of your policy.

In general though, tenants are responsible for purchasing their own insurance.

5. Am I required to buy home contents insurance?

No, unlike fire insurance or the HDB Home Protection Scheme, home contents insurance is not mandatory. However, it is highly advisable to do so, especially for resale and older properties.

Even if your belongings are not damaged, you’ll want to avoid hefty liabilities if your leaking water pipes, fire, etc. end up affecting the neighbours.

Attain peace of mind knowing you're well-covered with Singtel Home Protect and enjoy up to S$80,000 combined coverage for loss of home contents and renovation costs with every plan purchase!

Check out singtel.com/homeprotect for our latest promotions.
 

Terms and conditions apply. Protected up to specified limits by SDIC. Singtel Home Protect is underwritten by Great Eastern General Insurance Limited.