An essential checklist for home insurance
We get it – your home is the most important thing in your life. Considering that you’ve spent a tidy sum of money to spruce it up, it makes sense to protect it from unforeseeable circumstances.
By that, we mean an accidental fire due to an electrical malfunction, or perhaps a flooding incident from a burst pipe.
Getting a home insurance won’t bring back all the things you might have lost, but it can soften the impact and get yourself back on your feet.
But before you sign up for a home insurance plan, consider these points to ensure you’re getting a comprehensive coverage.
Building, renovation, and content – know the coverage
There are three coverage components to consider in a home insurance, namely building, renovation, and content. How you allocate your coverage across these three areas is highly dependent on the perceived value of each.
Generally, most people would place a higher weightage on the building coverage, given the high cost of the covered property. Regardless if you’re staying in a private property or HDB flat, the sum insured should be substantial.
Renovation and content coverage, however, are highly subjective. For those who went the minimalist route and have simpler furnishings, your renovation coverage might have a lower priority. But on the flipside, a minimalist home could also have highly valuable content, which includes higher value electronic items such as a Ultra High Definition TV or that expensive sofa set.
Do a breakdown of the initial cost of all three components, and you will be able to decide on how much coverage will be sufficient.
A rule of thumb here is to always ensure your building coverage is higher than the renovation and content components, while maintaining a feasible premium to be paid. To make it easy, check out Tiq Home Insurance by Etiqa and adjust the coverage options to get an estimate of the cost.
Identify the types of assistance rendered
Activating your home insurance coverage can range from a small repair to a massive overhaul that could leave you homeless for an extended period. Likewise, different situations call for unique solutions, so do take note if your home insurance includes the following.
Emergency cash allowance
This should be your top priority for one reason – cash is king.
Know this – the downtime from your home being repaired after an incident could drag on for a while. During that period, you’ll need to find alternative accommodations, be it staying with a relative or sourcing for a temporary apartment.
The latter will involve rental costs, and it’s going to pile up as the days go by. Home insurance can take care of that with an emergency cash allowance.
If your home is uninhabitable due to an insured peril, you should always inform your insurer as soon as possible. If you are covered under Tiq Home Insurance, you can get approval for the emergency cash allowance of up to $5,000 within 24 hours of notifying the insurer and get the cash by the next working day.
On top of that, you can encash the amount to your account instantly via PayNow, which makes it easy for you to access and start paying for the daily necessities.
Removal of debris
Your home is destroyed; you need to start from scratch. Before that can happen, you’ve to engage a company to clear the mess. This makes sense since you would want to be spared the heartache of tossing your destroyed items.
Here’s the thing – hiring a debris removal company is not going to be a free-of-charge service. On top of the loss of your items, you’ll have to consider the cost of removing them to make way for the rebuilding process.
Home insurance plans can cover the cost, and it’s important to see how much is covered. Some insurers cover the cost up to a percentage of the sum insured. For Tiq Home Insurance, debris removal can be covered up to 10% of the sum insured under the plan’s Renovation component.
Remember what we said about allocating your coverage based on your needs? This is why it’s important, to understand how much you’re willing to pay for debris removal versus the actual cost of the premium you’re paying for your home insurance.
Emergency home assistance
A leaking pipe or a blown bulb might seem like small issues that you can fix. But when these problems escalate into something major like the flooding of your home or perhaps an electrical fire, who will you be calling? Some home insurance plans do cover such incidents, though the extent of the coverage will vary.
What you need to look out for is not just the coverage, but also the number of times you are covered. Contrary to what you might think, such incidents are more common than you might expect, and it’s good to know if you’re well-covered at all times.
Taking Tiq Home Insurance as an example, you’ll find that it goes beyond covering your repairs. The repair service is engaged by the insurer, which will cover the cost of up to $200 per repair. If the problem recurs or another crops up, Tiq Home Insurance provides this service up to four times in a year.
Extend your coverage
While the basis of home insurance is to cover the repair cost of your home, don’t forget that your neighbours might be affected by the collateral damage.
As such, always ensure your home insurance plan covers yourself against personal liability. In particular, this will cover damages to your neighbour’s home, be it from a fire or other serious incidents.
Other things to look out for in your home insurance coverage might seem trivial, but it makes a difference when you least expect it.
Take for example the add-ons provided by Tiq Home Insurance, which includes a multi-appliance home protector that covers repairs of home appliances up to 2 times per year at $700 per callout.
The accidental injury for pet add-on comes in pretty useful too, should something befall your beloved furkid during the home emergency.
Then, there’s the worst case scenario – a death in the family due to the home accident. We know that the coverage of up to $50,000 due to the accidental death won’t bring back your loved ones, but it can provide some solace in the form of paying for a decent send-off.
Flexibility is the key
When it comes to choosing a suitable home insurance plan, the details matter. But more importantly, be aware of the plan’s flexibility in adjusting the coverage based on your needs.
The abovementioned add-ons are just one facet of the flexibility of Tiq Home Insurance. Find out more about their plans and customise a home insurance plan that gives you adequate protection for your prized asset.
- This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K).
- Protected up to specified limits by SDIC.
- Information is accurate as at 19 Jun 2019.