Renovations And Home Fire Insurance: Keeping Your Policy Up To Date

Renovations And Home Fire Insurance: Keeping Your Policy Up To Date – Your home is probably the most expensive thing you own right now. (Not to be arrogant, but I’m assuming you don’t have a supercar or a $3 million yacht.) So it makes sense to protect it.

And in this day and age, instead of digging ditches around your place and adding alligators, protecting your home means buying home insurance.

Renovations And Home Fire Insurance: Keeping Your Policy Up To Date

Here’s a guide to the best home insurance and plans in Singapore, depending on the type of property you live in.

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If you take out an HDB loan to buy your flat, you will be required to purchase compulsory HDB fire insurance. We don’t blame you for thinking you’re already covered on the home insurance front.

HDB fire insurance aims to cover the cost of repair work if your flat is damaged by fire. But the cover only covers internal structures, fixtures and areas built by HDB.

It does not cover any furniture, renovations or personal items in the flat. The mezzanine loft you added in the renovation? Not protected. The crystal chandelier you installed to channel The Phantom of the Opera? Not protected.

Home insurance, on the other hand, offers broader coverage than fire insurance. It protects not only your home itself (ie the building) but also the contents inside such as furniture, fixtures and appliances. Depending on your policy, this could also include your laptop or jewellery.

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You also don’t have to suffer fire damage to make a claim. Most policies will compensate you in the event of various incidents such as floods and break-ins. For example, MSIG home insurance covers you for fire, lightning, windstorm, flood, burst pipe, earthquake, burglary, malicious damage and more.

Most home insurance providers in Singapore have packaged their plans and coverage according to the size of the HDB flat you live in, so you’ll find three-room flat plans, four-room flat plans and so on.

If you live in different HDB flat types, go to MoneySmart’s home insurance wizard to compare home insurance policies for your flat size.

Private property runs the gamut from shoebox condos to sprawling country homes, so you need to assess your needs and find out what level of coverage is appropriate.

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As you may have noticed, some of the plans above do not include coverage for buildings or require you to purchase building coverage as an optional extra. This is because for most condos, it is the management committee’s responsibility to take out fire insurance for the entire property.

If you live at home, look for home insurance tailored to the property. Such plans usually offer a higher amount of building coverage.

Unless you have experience working in the construction industry, your need for building coverage can be difficult to estimate. You should calculate the cost needed to restore the property, including renovations, if something were to happen to it.

Imagine your home destroyed in a fire or flood. How much will you spend on redoing the floors, walls, etc.? The size of your home and the value of your renovation will play a large role in determining this cost. For example, luxurious marble floors or custom-made wood paneling may be expensive to replace.

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When assessing your need for home contents coverage, you’ll also want to estimate the total value of the contents inside your home. You should focus on the most expensive items, such as electronics, appliances, jewelry, watches and high-cost furniture items.

As a tenant, you might think: that’s not my property. But you may still want to consider home insurance, as it can cover personal belongings that belong to you and not the landlord. It can also cover you for costs that your landlord is not responsible for.

For example, if there is a fire or flood in the house, your landlord may have to cover the cost of renovating and restoring the property. But if you are contractually obligated to service and maintain air conditioning units, refrigerators and toilets, you may have to pay to fix them.

In addition, the cost of any loss or theft of personal items or electronics will of course not be borne by the host.

Design Choices That Impact Home Fire Insurance

In reality, most renters in Singapore do not buy home insurance. But it’s worth considering if you’re staying in Singapore for the long term and have a lot of high-value property that you want to protect.

Home insurance only covers your physical home and its contents, which has nothing to do with whether you can afford to keep up with your mortgage payments.

However, there is another product called mortgage insurance that will pay off any amount of your home loan balance if something happens to you (usually death or total and permanent disability). This saves your family from having to pay bills on your behalf or risk losing their home.

So poop has hit your new ceiling fan, either literally or figuratively, and you need to file a claim.

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The first thing to do is contact your insurance company immediately by calling your agent or dialing the company’s hotline. Most insurers have a time limit, usually about 30 days, within which you must submit your claim.

You will be instructed to fill out a claim form and attach supporting documents which, depending on your situation, may include the following:

ALSO READ: Why people are still opting for more expensive new condos over resale in 2023: 4 case studies that show PSF isn’t everything Some home renovations may increase your home insurance costs and some may lower them. Adding a pool, for example, may increase your premium, while adding a security system may lower it. Learn how home renovations can affect your homeowner’s insurance premium.

Renovating your home is exciting, but in between choosing tiles, checking plans and choosing paint colors, take the time to call your home insurance company and see how home renovations will affect your insurance costs. Some home modifications will cause your homeowner’s insurance premium to increase, while others may cause it to drop. Since not every home renovation will have the same effect on your homeowner’s insurance costs, it’s important to understand how your insurance costs may change before undertaking a major home renovation.

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Remodeling projects can add value to your home. However, they also make the house more expensive to rebuild or repair. (The average home renovation costs $48,025, according to HomeAdvisor.com.) Because you need more coverage, your premiums will increase.

When adding square footage to your home, you’ll likely buy furniture to fill the new space. You need to increase your personal property protection to cover the cost of replacing it if it is damaged or stolen. Keep receipts for all work done on your home and any new furniture you buy during the renovation. Your insurance company may need it to assess your coverage needs.

How much these modifications will increase your premium depends on the specifics of your home and your policy. Before starting your renovation, talk to your insurance company about your plan. See if the agent can give you a rough estimate of how much your premiums might increase. Your insurer may also have suggestions for adjusting the planned renovations to reduce insurance costs.

Fortunately, not all home improvements will increase your insurance costs. Home improvements that make your home safer from fire, storms, burglaries and other hazards can lower your insurance premiums. Modifications that can lower your premium include:

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If you are considering any of these modifications, contact your insurance company to see how much it might save you.

To avoid unexpected increases in your home insurance costs, consult your insurance company before starting any home improvement project to see how it may affect your premiums. Home renovations can be expensive, but maintaining good credit can help keep costs down. A good credit score can make it easier for you to qualify for home improvement financing options such as home equity loans, personal loans or home equity lines of credit. In states where your credit-based insurance score affects your home insurance premium, improving your credit can even help lower your insurance costs. The same good financial habits that help improve your regular credit score, such as making on-time payments and keeping credit card balances low, can help improve your credit-based insurance score as well.

Editorial Policy: The information contained in Ask is for educational purposes only and is not legal advice. You should consult your own attorney or seek specific advice from a legal professional regarding any legal issue. Please understand that policies change from time to time. Post reflects policy at time of writing. Although kept for your information, archived posts may not reflect current policies.

The opinions expressed here are those of the authors alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or endorsed by any of these entities. All information, including rates and fees, is accurate at the date of publication and is updated as provided by our partners. Some offers on this page may not be available through our website.

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