Is Home Insurance Necessary? 5 Common Myths Examined
Let’s bust some home insurance myths.
Most of us put in a lot of money, time and effort into buying and renovating our home to make it a beautiful respite. To protect our home and its contents from any unwanted mishaps or disasters, we know that insuring it in some way is a must.
But did you know that HDB Fire Insurance only covers damages to building structure, not furnishings and everything else inside your home? In this article, we’ll cover that and more as we debunk 5 myths about home insurance.
Psst, read till the end for more on how you can enjoy 20% off all Aviva Home Insurance plans - valid till 30 June only!
1. “I don’t need home insurance, fire insurance is enough.”
Interior Firm: Mr Designer Studio
This is probably one of the biggest misconceptions about home insurance. Fire insurance only has basic coverage for damage suffered to building structures. Specific to HDB units, HDB Fire Insurance only covers the basic cost of reinstating such structures built by the HDB.
Home insurance on the other hand, ensures that personal belongings/contents inside your home are covered from damage caused by unfortunate events such as fires, water leaks, and burglary. Damage to renovations and debris removal are also covered under home insurance.
2. “Our home is already insured by HDB for as long as we live there.”
Interior Firm: Key Concept
HDB Fire Insurance is actually only mandatory if you are a HDB flat owner for as long as you have an outstanding HDB loan. You’ll also have to renew your HDB fire insurance policy every 5 years as it isn’t automatically renewed. With these two conditions in mind, your home is not necessarily covered for as long as you live there.
3. “You only need home insurance if you’re the owner of the house.”
Interior Firm: Fineline Design
Unfortunately, as a tenant, your landlord’s home insurance policy doesn’t cover you. Getting one for yourself ensures that - in say, a fire - your personal belongings ranging from your furniture to your Star Wars collectibles, will be covered. Home insurance can also cover your liability should you cause damage to your landlord’s property or home contents.
Renovation works required for damage to your landlord’s property will take time, which means you’ll need to find alternative accommodation in the interim. Under Aviva Home Insurance, you will be covered up to $12,000 for temporary accommodation costs incurred.
4. “A basic home insurance policy will do.”
Interior Firm: KDOT
You don’t want to realise only after an emergency or event has happened, that your home insurance plan doesn’t cover your needs. Under-insuring your home means that the compensation you receive will not be enough to cover your losses should an event occur. Choosing too basic of an insurance policy may not be suitable if you’ve spent a sizable amount on your home renovation, or if you have designer furniture at home.
On that note, don’t worry about rushing to tabulate the total value of your home contents just yet. Under Aviva Home Insurance, there are no penalties if you initially under-declared/did not declare the total value of your home contents.
5. “Just get the highest policy coverage & all add-ons too please!”
Interior Firm: Third Avenue Studio
On the contrary, over-insuring your home means forgoing money that can be spent more productively. The best way to determine what coverage tier and add-ons you need is to evaluate your lifestyle and any upcoming changes to it, as well as establish the cost of renovation and value of your home contents.
Some examples of riders you can add on to your Aviva Home Insurance policy include a cover of up to $300 for the loss or damage of your bicycle/PMD, and a personal accident cover of up to $50,000 for you and your family.
Get a plan that suits your lifestyle
Interior Firm: Jubilee Interior
A good home insurance policy ensures that you are able to adjust your coverage based on the considerations discussed above. With Aviva Home Insurance, you can choose from 3 different tiers that will best match your needs. Should your home become uninhabitable due to an unfortunate incident, you’ll also receive emergency cash allowances based on your tiered coverage.
If you purchase a policy as a tenant, you and your family will be covered from any liability resulting from damages to your landlord’s home.
A seamless claims experience with Aviva Home Insurance
Interior Firm: U-Home Interior Design
Being able to receive help quickly is extremely crucial following an unfortunate event. For a more seamless claims experience, Aviva Home Insurance policyholders will be able to receive payouts through PayNow within 1-2 working days once the claim has been approved.
Enjoy 20% off Aviva Home Insurance (limited time offer!)
From now till 30 June 2021, enjoy 20% off all Aviva Home Insurance plans. Plus, enjoy a free upgrade to the next higher tier for existing MINDEF, MHA and POGIS Group Term Life policyholders.
Policy and promotion terms and conditions apply. The policy is underwritten by Aviva Ltd. The information here is for general information only. For more details, please refer to https://www.aviva.com.sg/en/insurance/home. This policy is protected under the Policy Owners’ Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Aviva Ltd or visit the GIA or SDIC web-sites (www.gia.org.sg or www.sdic.org.sg)