The Importance of Home Insurance
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.