What does your home insurance cover?

[therock]

Friends

I was looking at home and fire insurance for my place and I found out some things:

the fire insurance that the bank makes you take when you have a loan will pay the bank first 

so if there’s no money left you come out empty 

 

Second is there anyone in their MCST?

What does the condo insurance cover?

Say there’s a fire in your home which damages the walls or some infrastructure, does the policy cover it?

 

I've been diving into this recently

 - lets use an example say a homeowner is cooking and the cooker catches fire:
(A) Burns only his own unit - walls are charred, tiles need to be replaced but no structural issues)
(B) Burns only his own unit - fire burns through structural beam and needs looking into and repair
(C) Burns his own unit, and burns through to the upstairs unit including structural issues

Are all these issues covered under MCST insurance? Looking specifically at the building replacement, not renovation or contents insurance

 

[Beanoyip]

Good question, i think in SG, home insurance is not really a thing, since everything seems very safe.. but if you're worried, can just buy those home insurance, 3rd party & home content

[Volvobrick]

Sg homes are fairly safe. Unless charging PMDs. 

[therock]

29 minutes ago, Beanoyip said:

Good question, i think in SG, home insurance is not really a thing, since everything seems very safe.. but if you're worried, can just buy those home insurance, 3rd party & home content

Thanks but that’s what I’m saying 

you have to check the T&C

if you claim the bank insurance you can’t claim another and it may not be enough 

fires are unpredictable so never say never ..

Edited September 22, 2020 by therock

[serenade]

MCST public liability insurance in cases of fire covers just the walls as supplied by developer. It excludes appliances or decoration that are wall mounted. MCST insurance must be supplemented with own home fire/flood  fittings + general contents insurance. 

My own experience is once I list contents, the premium goes up exponentially as the item gets insured individually. Examples are jewellery, expensive watches, HT/audio equipment and software. 

You can opt for varying coverage for contents. Fittings value is quite standard.

[Ct3833]

14 hours ago, therock said:

Friends

I was looking at home and fire insurance for my place and I found out some things:

the fire insurance that the bank makes you take when you have a loan will pay the bank first 

so if there’s no money left you come out empty 

 

Second is there anyone in their MCST?

What does the condo insurance cover?

Say there’s a fire in your home which damages the walls or some infrastructure, does the policy cover it?

 

I've been diving into this recently

 - lets use an example say a homeowner is cooking and the cooker catches fire:
(A) Burns only his own unit - walls are charred, tiles need to be replaced but no structural issues)
(B) Burns only his own unit - fire burns through structural beam and needs looking into and repair
(C) Burns his own unit, and burns through to the upstairs unit including structural issues

Are all these issues covered under MCST insurance? Looking specifically at the building replacement, not renovation or contents insurance

 

 if a house is completely burned down, there is still the land price which is rougly 2/3 of the price of your house. If the  insurance company pays the bank, that would mean you do not have to pay the rest of installment, you can then use the saving  from your future installment to rebuild the house. Sorry i said you because I am assuming you are referring to your existing unit.   If one does not have the cash to rebuild it, then he could  take a loan  to rebuild it, dont forget his  current loan or part of the loan should has been  paid by the insurance already, there should be no more or lesser outstanding loan. 

But what I am quoted is the worst case scenario, more likely , a fire would damage the reno, not the structure of the house, so the insurance pay out should be able to cover a portion of the renovation, i dont think they will pay for full reno. 

 

And yes, the insurance that a bank makes a borrower to take up is to protect the bank, not the borrower. 

 

Edited September 22, 2020 by Ct3833

[Volvobrick]

51 minutes ago, Ct3833 said:

 if a house is completely burned down, there is still the land price which is rougly 2/3 of the price of your house. If the  insurance company pays the bank, that would mean you do not have to pay the rest of installment, you can then use the saving  from your future installment to rebuild the house. Sorry i said you because I am assuming you are referring to your existing unit.   If one does not have the cash to rebuild it, then he could  take a loan  to rebuild it, dont forget his  current loan or part of the loan should has been  paid by the insurance already, there should be no more or lesser outstanding loan. 

But what I am quoted is the worst case scenario, more likely , a fire would damage the reno, not the structure of the house, so the insurance pay out should be able to cover a portion of the renovation, i dont think they will pay for full reno. 

 

And yes, the insurance that a bank makes a borrower to take up is to protect the bank, not the borrower. 

 

Home insurance is not like car insurance. Only cover replacement, repair and rebuilding costs, not paying to the bank. Land is not covered.

[ToyotaShuttle]

2 hours ago, Volvobrick said:

Home insurance is not like car insurance. Only cover replacement, repair and rebuilding costs, not paying to the bank. Land is not covered.

Doesn't make sense to cover the land tho. Even if everything burns down, the land is still there.

[Volvobrick]

6 hours ago, ToyotaShuttle said:

Doesn't make sense to cover the land tho. Even if everything burns down, the land is still there.

Unless earthquake and the land becomes a cliff! Or wave erosion maciam in some coastal areas.

[therock]

Actually I'm asking about a condo, and friends, you might like to check the T&C on your plans.

Eg if a home is value at 1 mil, and you take up a 500k policy, you may only be paid 50% of what you insured - 250k! Because you didn't cover the whole amount..

Think of your car - it's either 3rd party, or 1st. No half cover of 1st party.

Hope to get some clarity on this, as I've recently tried to peel away the layers of T&C and discovered some interesting facts.... 

I hope some insurance pro will be able to shed light on this ?

[therock]

8 hours ago, Volvobrick said:

Home insurance is not like car insurance. Only cover replacement, repair and rebuilding costs, not paying to the bank. Land is not covered.

That's the kicker 

If you only have that bank loan fire insurance, the first person to be paid is your bank. If there's any leftover money, then you may get it. Else the repair or rebuild is out of your own pocket. Please check the T&C..

[therock]

Just had a ding dong between the home and condo insurance for a door issue in my apartment.. 

Like car insurance, choose your insurer wisely. Don't go for cheap... 

[gloriasutter]

Hey

Home insurance coverage may be different as per the company you are insured too. Most commonly, home insurance helps to pay for the personal belongings damaged due to fire, water damage, lightning strikes or theft. It also protects you from financial liability if a visitor is injured on your home or you accidentally damage another person's property. You should compare policies carefully before choosing one. Your insurance policy might be planned according to the data you provide about your home. So while purchasing home insurance, be sure to share all information regarding your home with the insurance company.

Thanks!

[therock]

https://www.straitstimes.com/singapore/up-in-flames-the-high-cost-of-residential-fires-in-singapore

Quote

Recent reports of homes catching fire have highlighted the issue of buying home and fire insurance.

Mr Lim, a sales executive, 48, said they had not bought home insurance then. But since the fire, he has bought home insurance from AIA for around $400 a year, which covers up to $260,000 for losses and damage to buildings, and up to $37,000 for home contents.

He also installed an additional smoke detector in their flat and ensures a pair of home keys are placed close to the door.

He told The Sunday Times: "The night of the fire, my eldest son and I cried and hugged each other. He was traumatised and I felt heartbroken seeing him like that.

"My wife and I had to be strong and sort out our insurance claims, as well as arrange for contractors, on top of juggling our work."

Mr Lim said the family lost their valuables, including four branded pens that cost $2,000 in total, branded leather goods, digital devices and a new air-conditioning unit as the contents of their home were not insured.

Quote

HDB fire insurance does not cover home contents

The Housing Development Board (HDB) requires flat owners who have taken HDB loans to buy and renew HDB fire insurance for their homes as long as they have an outstanding loan.

According to its website, fire insurance lasts for five years, and home owners have to renew the insurance every five years until the loan is fully paid. It covers the cost of reinstating damaged internal structures and fixtures and areas built and provided by HDB.

However, fire insurance does not cover items such as renovation, furniture and personal belongings.

The sum insured is dependent on the type of flat. A four-room flat, for example, can be insured for up to $82,000.

The one-time cost of the insurance for a five-year period ranges from $1.62 for a one-room flat to $8.10 for an executive apartment.

When flat owners have repaid their loans, they can choose not to renew the fire insurance.

 

 

Quote

For home contents, such as furniture and renovations, home owners can choose to buy home insurance from various insurance companies here.

The Sunday Times understands that most fire and home insurance policies provide building and structural coverage from damage caused to a home by factors like fire, lightning, domestic explosion, or the bursting or overflowing of water tanks.

Home insurance policies may also provide extra cover, including alternative accommodation expenses or loss of rent when a home becomes uninhabitable.

For example, Sompo's HomeBliss Cosy standard plan starts from $96.30 for one-year insurance, which covers up to $80,000 for buildings, renovation, fixtures and fittings and up to $20,000 for home contents.

A basic home insurance plan from Aviva starts from $69.40 per year, which covers up to $35,000 for household contents and up to $75,000 for renovations.

Examples of household contents include furniture, domestic appliances, computers, clothes, watches and jewellery.

Aviva Singapore head of general insurance Pan Jing Long said: "Following an unforeseen event, the cost of one's personal possessions, home renovations and furnishing can be very costly, and it would be wise to transfer the risk of such financial losses to an insurer."

Quote

Total number of residential fires

2020: 1,054 cases (-9.8%)

2019: 1,168 cases

According to statistics released by the Singapore Civil Defence Force, the top three causes of residential fires last year, in order, were unattended cooking, discarded items, and fires caused by electrical origins such as faulty wiring.

Fires from unattended cooking

2020: 375 cases (+5.9%)

2019: 354 cases

Tip

Do not be distracted when cooking, such as using the phone or watching television. It is good practice to set alarm timers to remind oneself to switch off the source of fire after a specific time.

Fires from discarded items

2020: 193 cases (-19.6%)

2019: 240 cases

Tip

Ensure that corridors and lift lobbies are clear of storage and discarded items. These items are generally combustible and will impede escape during fire emergencies.

Fires from electrical origins

2020: 187 cases (+3.3%)

2019: 181 cases

Tips

• Do not overload power outlets by plugging in multiple electrical equipment and appliances.

• Always buy approved original products for items such as battery chargers, batteries and extension sockets. Look for the "Safety" mark on plugs and switched socket outlets.

• Ensure that there are no combustible materials near devices that are charging. Always remember to not overcharge these devices.

 

Edited March 14, 2021 by therock

[therock]

https://www.straitstimes.com/business/invest/fire-insurance-myths-debunked

Quote

Myth 3

NO NEED TO BUY FIRE COVER IF HOUSE IS FULLY PAID UP

It is not mandatory under the law to buy fire insurance, says the GIA, but some banks demand it when you take a home loan.

Without an outstanding loan, fire insurance is optional for property owners.

The HDB does not require home owners to buy fire insurance if the HDB loan is fully paid. Still, it is prudent to have adequate fire cover and consider protecting your home contents too.

"While there may be no legal obligation or requirement, it is still important for home owners to have fire and home-contents insurance to cover for structural damage, fixtures and fittings and personal possessions, so that they are not out of pocket in the event of a fire," says Mr Subramaniam.

Mr Neo notes that for private condominium estates managed by a management corporation (MCST), the MCST would usually take up a fire insurance policy to cover the building and all original developer's fixtures, excluding paintwork. So the home owner should at least get a fire insurance policy to cover his own renovations and contents.

For a landed house (non-strata titled), there would be no common body to buy a fire insurance policy on the owner's behalf, so the owner should get cover, not just for his own renovations and contents but for the building as well.

Insurance provides you with peace of mind if something goes wrong and is beyond your control. You may have done your best to prevent a fire in your home but what if the fire originates from your neighbour's, warns Mr Brice.

He recalls a recent claim involving a fire which broke out in a neighbouring unit and spread to a semi-detached home covered by MSIG Insurance. The fire caused extensive damage to the building's roof and one of the adjoining bedrooms.

The entire house was also affected by water damage and was covered in soot. The MSIG customer had bought a home insurance policy that covered both the building structure and home contents. After assessing the damage, MSIG paid out close to $500,000 for the claim.

Mr Brice adds that he has also come across cases where a tree belonging to an MSIG customer fell onto a neighbouring unit. MSIG would pay out the claim as personal liability is covered under its home insurance policy.

This means that even if your house is fully paid up, it is worth continuing your insurance to cover what you have spent thousands of dollars to build up, he says.

Myth 4

THE REINSTATEMENT COST WILL BE AFFORDABLE

A fire in a house, even when confined to one room, can often result in a five-figure loss due to the spread of heat, soot and water.

If a fire causes structural damage, the loss can easily be in the region of six or even seven digits, so the reinstatement cost cannot be deemed to be affordable, says Mr Neo.

Many owners might find it difficult financially just to place a down payment with their contractors to carry out the reinstatement works.

Mr Neo added that when the fire damage is severe and the house is uninhabitable, the owner will have to incur additional expenses for alternative accommodation, which can be significant depending on the duration of the reinstatement works.

If a fire causes structural damage, the loss can easily be in the region of six or even seven digits, so the reinstatement cost cannot be deemed to be affordable, says Mr Nehemiah Neo, managing director of insurance loss adjuster Insight group.

He recalls handling claims where the owners eventually moved back into the house only several months or even more than a year later, after the fire.

If the house is insured, the owners can often get an interim payment from insurers to commence the reinstatement works, thus easing their financial difficulties.

 

[myles29]

I have comprehensive home insurance, which includes protection from all risks, except for those specifically excluded. This includes protection against losses due to theft, fire, wind damage and much more. I believe this is the most complete form of coverage available, which is why this is my first option when shopping for home insurance. I got it through Surex, who helped me find the cheapest quotes available.

[Throttle2]

37 minutes ago, myles29 said:

I have comprehensive home insurance, which includes protection from all risks, except for those specifically excluded. This includes protection against losses due to theft, fire, wind damage and much more. I believe this is the most complete form of coverage available, which is why this is my first option when shopping for home insurance. I got it through Surex, who helped me find the cheapest quotes available.

Oh wow, you very helpful hor? 😂🤣

[serenade]

General fire insurance is very affordable. As long as you stick with the general policy wordings of fixtures and contents. As I live in a condo that has its own general insurance that takes care of the MCST items, I bought coverage for the internal fittings like fixed cabinets, curtains, air-con, fans and repair costs. I added extra coverage for general contents without naming anything special. Home insurance still affordable.

But once I added and listed specific items to be covered, the premium went up by a few times. Like specific HT/audio gear, hobby collections. The insurer wanted me to list and state their purchase price. Then they charged a big % of the purchase price of each item as the annual premium. It did not make any sense to me to insure them individually. 

Good luck to you if you have a watch or other collection that gets destroyed in a fire. You get a small % back when insured under general contents heading.