A home is arguably the most important asset which an individual could possess. This is because one’s home serves as a place for personal rest and safety as well as an area in which one may store many or all of one’s most valuable possessions. Thus, it is vital that a homeowner does everything necessary to ensure the security and safety of the home.
From time to time, there will be unforeseen circumstances which may jeopardize the security of one’s home. In such instances, homeowners who have insurance will be adequately protected against the losses which they would otherwise suffer from such unfortunate events. Although no legal requirement for home insurance is in existence, those who are providers of mortgage will usually require a homeowner to at least possess property insurance before allowing the homeowner to receive mortgage. These providers require such insurance because it also works to their advantage; their money is often secured against the property.
Adequate home insurance coverage for homes should cover incidents such as fires, natural disasters, and damage caused by criminal activity. There are several reasons why home insurance is extremely important.
Why Foreigners Living in Singapore Should Purchase Home Insurance
Any foreigner who intends to move to Singapore ought to take measures to ease their transition to life in Singapore before they move there so as to prevent facing many unnecessary troubles. One way in which a foreigner might do so is by purchasing home insurance as well as insurance for expensive items within the home. Such insurance will allow anyone in Singapore to be spared the high costs which would be incurred when unfortunate events related to the home occur. Just as is true anywhere else in the world, it is advisable for everyone living in Singapore who can afford one to purchase a suitable insurance plan, and this is a fact of which locals and foreigners alike must be aware.
Protection of One’s Personal Property
Ownership of insurance will help protect one’s property against such circumstances as vandalism, fires, and other dangers. Even if the extent of damage is negligible, insurance cover can help a homeowner in repair minor damages that might have occurred to the building and property in the home. If the home were to become uninhabitable, the insurance coverage would provide assistance by allowing for access to a temporary living space while the property is being repaired or a temporary alternative shelter is being used.
Protection Against Liabilities
Home insurance also protects a homeowner against liabilities. There are certain homeowners’ policies that can protect a homeowner in the event of a lawsuit due to injury which has taken place in one’s property. By default, a homeowner will be held responsible for the injury, and in most instances legal action as well a compensation fee will be imposed against the homeowner. However, homeowners who own a suitable insurance policy will find that the coverage will help the homeowner pay for the damages which have been caused.
Fulfilment of Lenders’ Requirements
Although there is no legal requirement for home insurance in Singapore, most lenders in Singapore will ask the homeowner to provide proof of purchase of home insurance. Such is the case because it is within the property that the lender’s money is to be stored in case of any need of recovery of this money the future. The coverage will assure the lender that in case the home is damaged in any way, the insurance coverage will ensure that the money remains safe.
The vast majority of lenders based in Singapore do not harbor any concerns with regard to the nationality of the homeowner. Therefore, any foreigner who purchases home insurance in Singapore may benefit from the advantages offered by lenders just as any citizen or permanent resident of Singapore would.
The level of risk involved for a homeowner who is not insured is much higher than that of one who is insured. Therefore, all homeowners in Singapore, whether local or foreign, are advised to obtain adequate home insurance for the protection of their respective homes. The cost of home insurance is much lower than the cost of all items which are insured by home insurance.
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How Homes in Singapore Are Insured
In Singapore, the first step of the process of insuring one’s home is the selection of an appropriate insurance policy which suits the current circumstances and needs. Insurance policies depend on whether the home to be insured is a condominium, Housing Development Board (HDB) flat, or landed property. The home insurance coverage will be dependent on whether the purchaser of the insurance is a homeowner or a landlord. It also depends on whether the purchase, anyone else, or nobody is currently living in the premises to be insured. The next step to be taken is that of visiting an insurance consultant. Insurance consultants are able to steer those purchasing insurance in the right direction as it pertains to the purchase of home insurance. Once the appropriate insurance plan has been selected, all that remains is the purchase of the insurance itself; once this is done, the homeowner’s home will be insured.
Household Items Which Are Often Insured in Singapore
Many of the properties which may be insured by a Singaporean insurance company will vary from company to company. These properties will depend on company policies as well as the requirements of the home being insured. However, one can insure several items as long as all prices of insured items are disclosed through receipts. The items which are most frequently insured in Singapore are air conditioners, audiovisual equipment, wardrobes, cameras, clothing, domestic appliances, jewelry, and computers including laptops. These items are frequently insured because of their high cost. Therefore, by purchasing insurance for these valuable household items, the purchaser of the insurance can be assured that the value of all of these valuable items will be recouped during times of emergency.
All foreigners who plan to purchase insurance in Singapore ought to consider the specific protections offered by each of the various insurance plans which could be purchased before making such a purchase. It is important that a foreigner who purchases home insurance in Singapore select the plan which would best suit the foreigner’s current living situation while also providing protection for as many valuables as possible.
Role of the Housing Development Board in Relation to Singapore Home Insurance
The Housing Development Board (HDB) oversees all public housing in Singapore. It offers services such as the provision of affordable homes for people who live in Singapore through the planning and development of public housing plans across the country. The HDB is also responsible for designing estates which have features designed to increase the level of sustainability and liveability for those who live in such estates. They also work with research centers so that creative and technologically advanced homes will be able to be provided to those seeking a home in Singapore. Certainly, the HDB has done much to provide living spaces for everyone who lives in Singapore today.
The HDB works to ensure that Singaporeans become capable homeowners while also providing access to suitable insurance schemes for their homes. The body helps any homeowner in Singapore acquire affordable home insurance policies while also offering financial planning so that the homeowner may purchase home insurance policies which will assist in the purchase of their home as well as any valuable items contained in the home.
Ownership of home insurance in Singapore is truly crucial for every homeowner. This is because those who own a home which has been insured will not have to be concerned about the potential risks faced if any untoward circumstances were to take place. Local and foreign homeowners alike will reap many benefits from an appropriate and suitable home insurance plan. Many lenders in Singapore also require a homeowner to have purchased a home insurance policy before the homeowner may engage their services. This is true of everyone who interacts with such lenders, whether they be a local or a foreigner. Thus, it is in the best interest of every homeowner in the country to own home insurance.
Home Insurance in Singapore FAQs
Which homes in Singapore can be insured?Tiwi2020-06-24T12:51:19+08:00
All homes are insurable in Singapore. The value and location of the building as well as the purchaser’s status of either owner or tenant will dictate how the insurance policy will be applied to the insured home. However, there are no major issues with the purchase of home insurance in Singapore. Any homeowner in Singapore is not only permitted but even encouraged to purchase a fitting home insurance plan.
How expensive is home insurance in Singapore?Tiwi2020-06-24T12:50:00+08:00
According to the latest statistics, the average value of home insurance in Singapore is approximately S$154 per year. This figure accounts for policies which insure against threats such as fires, vandalism, floods, or any other potential cause of damages to a home in Singapore.