Secure Your Happy Home with these 4 Essential Types of Insurance
Owning a home is a significant milestone for most of us, in fact it’s very likely the biggest investment we’d make in our lives.
The thing is, buying a physical house is only the first step into making it your home.
Just think about it, your home is a place far more significant than a place to sleep in — it’s where you return after a long day out to feel safe, comfortable, and well-protected. This environment of a happy home needs to be fostered and created, not simply with furniture and appliances.
One of the most underrated aspects of building a home is the importance of having adequate protection — namely having stability and security against unforeseen events. For this, we turn to insurance plans — and don’t worry, these are often pretty affordable.
Let’s take a look at some of these 4 types of insurance that go hand-in-hand to make your home a happy and secure one.
Understanding Home Protection Insurance — Remember, It’s Not the Same as Fire Insurance
When it comes to protecting your home, it is often assumed that the fire insurance mandated by HDB or your condo’s MCST might be sufficient. However, home protection insurance such as Income Insurance's Home Ultimate Protect and Enhanced Home Insurance offers a broader safety net.
You see, fire insurance fundamentally covers the structural aspects of your home, and often only covers the building’s structure, not the contents within your home or renovations that home protection insurance covers.
Do take note that renovations are improvements and additions made within your home in the form of fixtures and fittings. This can include flooring and all carpentry you’ve added yourself — which are likely not covered by fire insurance, depending on their policy conditions and exceptions.
What you want to consider is an insurance plan that covers other aspects — not just the aforementioned home contents and renovations — but also structural protection and liability protection against damages to neighbouring properties in the event of a fire.
Our Enhanced Home Insurance plan, for example, covers fire, burst pipes, theft, and more. It also includes protection against accidental death, disability, and specified injuries arising from accidents within the home1.
Additional benefits that could further offer peace of mind include:
- accidental breakage of mirrors and fixed glass within the home
- replacement of locks and keys
- spoilt food in the refrigerator
- unauthorised use of your credit card due to a home theft
But that’s not all – view the full list of additional benefits here.
As an added bonus, you’ll also have access to complimentary2 24/7 emergency home assistance during unexpected situations when you urgently need a plumber, electrician, locksmith, pest control or air-conditioner repair services. Just note that these services are not part of the policy and are subject to change over time.
For HDB homeowners, you could opt for building cover to automatically get covered for the full reinstatement value up to $100,000, or $200,000 for jumbo flats.
How Much Coverage Is Enough?
As a point of reference for HDB homes, and depending on the extent of coverage, monthly premiums might range from less than S$40 a year for a 3-room flat3, to less than S$60 a year for a 4-room flat4.
Premiums for private housing with a higher sum assured value such as a condominium or bungalow may cost around S$200 a year5. Do note that these figures are also dependent on the extent of renovation coverage and home contents coverage.
You can refer to these infographics for some example scenarios of HDBs and private homes.
So then, how much home insurance coverage should you opt for? Here are some pointers to help get you going:
- Assess your home and home contents value: Calculate the cost of replacing your home contents, or even rebuilding your home. This can include the cost of renovation, furniture, and other gadgets.
- Factor in inflation and asset value: Think about inflation and the increasing value of your possessions over time. Do you have valuable art, watches, or rare collector items that could be worth much more over time?
- Be careful not to be under-insured: If the cost of reinstating your whole place is $500,000, but you’re only insured for up to $300,000, then you’re under-insured and can only claim 60% of the full sum for building and renovations. Sounds straightforward, right? The catch is that by being under-insured, even if your repairs cost $200,000 (less than the sum assured), you’re only able to receive a claim of 60% of that sum as well, i.e. $120,000.
Thankfully, we make the planning process hassle-free for you - try out our Home Net Worth Calculator to get an estimate on premium rates for your property based on your home details and contents, down to the individual items in each room.
Once you have made up your mind, getting a quote from us is a straightforward, online process.
Protect Your Finances with Mortgage Term Insurance
While home protection insurance covers the physical structure and contents of your home, Mortgage Term Insurance focuses on the financial aspect. Mortgage term insurance is a type of protection plan that provides coverage that reduces over a limited period of time, which is usually timed to the remaining duration of one’s mortgage loan.
It ensures that your mortgage repayments are taken care of should the unexpected happen to you, alleviating financial strain on your family. This coverage is especially crucial if you are the primary breadwinner or if your household relies heavily on your income.
Our Mortgage Term Insurance ensures your loved ones are not left with the burden of mortgage repayments in the event of death, terminal illness, or total and permanent disability (TPD before age 70). This helps to maintain your family's financial stability and ensures that they can continue to live in their home without the added financial stress of mortgage payments.
How To Choose the Right Mortgage Term Insurance
- Coverage amount: Consider covering the total outstanding balance of your mortgage loan.
- Policy term: Choose a policy term that corresponds with the remaining duration of your mortgage loan. Income Insurance’s Mortgage Term Insurance allows you to choose a policy term from 5 to 35 years.
- Premium amount: Compare premiums to find a policy that fits within your budget while offering sufficient coverage.
Have a Maid? Then Domestic Helper Insurance Is a Must
Hiring a domestic helper in Singapore comes with responsibilities, including mandatory maid insurance to ensure your helper has access to medical care and financial protection in the event of accidents, illnesses, or other unforeseen events.
Maid insurance isn’t just about protecting your helper, however. It also helps safeguard you from potential financial and legal complications arising from your helper’s medical expenses, liability coverage, wage compensation when your helper is unable to work when she is hospitalised, and also repatriation costs should that situation arise.
For instance, Income Insurance’s Domestic Helper Insurance offers a comprehensive and hassle-free solution for you. Some highlights include:
- Preferential rates for medical consultations: Get preferential rates for general practitioner and specialist consultations, plus compulsory 6-monthly medical examination through MediPass app6.
- Letter of Guarantee7: Enjoy hassle-free convenience while minimising your out-of-pocket expenses when we pay for your helper’s eligible hospitalisation expenses directly to the hospital on your behalf.
- Coverage for pre-existing medical conditions8: If your helper is employed for more than 12 months in Singapore, we will cover her for hospitalisation for pre-existing medical conditions8.
- Wage compensation: If your helper is hospitalised or on hospital leave and is unable to carry out her duties, the policy compensates their wages for up to 30 days9.
- Up to S$80,000 personal accident coverage10
- Local and emergency overseas hospitalisation11 coverage for your helper (including COVID-1912).
For Your Fur-ever Family, Don’t Forget Pet Insurance
For all dog and cat owners, having a pet as a companion is integral to building your happy home.
While there are plenty of moments that make up great memories, being a pet owner is not all sunshine and rainbows – one may learn that when picking up your pet litter at the park!
Besides, your pet will also require veterinary or medical treatments from time to time. Some common conditions that your pet might face include gastrointestinal issues and skin conditions, among other ailments. Veterinary bills for these conditions can be substantial, making pet insurance a wise investment. This will allow you to help provide them with the best care when needed without causing a strain on your finances.
What To Look Out for In Pet Insurance
- Coverage limits: Understand what’s the maximum payout.
- Exclusions: Know what’s not covered under the plan – for instance, which conditions are covered and age of your pet.
- Premium costs: This is important so you can find the plan that delivers the best value for your requirements.
Our Happy Tails Pet Insurance provides comprehensive coverage, so you can focus on taking care of your pet with less financial strain. Here are some highlights:
- Protect against costs of unexpected medical treatment for cats and dogs, with coverage for both injuries and sickness.
- Coverage for surgical expenses due to your pet’s sickness, specified congenital and hereditary conditions13.
- No Claim Discount of up to 15% lets you enjoy additional savings when you do not make a claim during the period of insurance.
- Chemotherapy benefit if your pet is diagnosed with cancer and needs to undergo chemotherapy as recommended by a veterinarian.
- Third party legal liability benefit14 if your pet accidentally injures someone or causes loss or damage to property in Singapore.
So, What Will You Do to Safeguard Your Happy Home?
Comprehensive insurance coverage is essential to protect your happy home. Home protection, mortgage, domestic helper, and pet insurance complement each other to provide all-around protection for your family.
Looking to get a quote or have more questions? You can speak to our insurance advisors to work out a plan tailored to your needs.
1 The personal accident cover will apply if you, your husband, wife or children are involved in an accident within the premises which causes an injury and due only to this accident, you or they die or become permanently disabled within 90 days from the date of the accident. The amount of benefit payable is subject to the scale of compensation in the policy contract. Premises means the residential property which you insure at the address shown in the policy contract. This does not include shared areas as described in our definition of building in the policy contract.
2 Subject to limits and terms and conditions of the Complimentary Emergency Home Assistance Services, accessible at http://www.income.com.sg/home-insurance/EHA
3 The annual premium is $39.65 for a homeowner’s 3-room & below HDB flat with a renovation coverage of $40,000, home contents coverage of $20,000, and without building coverage, for coverage starting 30 September 2024, as calculated at https://www.income.com.sg/buy/enhanced-home-insurance.
4 The annual premium is $59.48 for a homeowner’s 4-room HDB flat with a renovation coverage of $40,000, home contents coverage of $20,000, and without building coverage, for coverage starting 30 September 2024, as calculated at https://www.income.com.sg/buy/enhanced-home-insurance.
5 The annual premium is $216.02 for a homeowner’s condominium or bungalow home with a renovation coverage of $150,000, home contents coverage of $80,000, and without building coverage, for coverage starting 30 September 2024, as calculated at https://www.income.com.sg/buy/enhanced-home-insurance.
6 The application (“App”) is owned, hosted and managed by MY-INSURER PTE LTD, a service provider of Income Insurance Limited (“Income Insurance”). Income Insurance may from time to time change the service provider or terminate this service without prior notice. Income Insurance is not responsible for the contents of the App, the consequences of accessing the App, any transaction in the App and the services provided in the App. The App, the service and the benefits therein are not part of any insurance policy.
7 This Letter of Guarantee (LOG) service is only applicable if your domestic helper is hospitalised at a Singapore government restructured hospital. The LOG limit will be $60,000 per year and the LOG amount issued will depend on the actual hospital bill and is subject to our policy terms and conditions and individual hospital guidelines.
8 Covers pre-existing medical condition provided your domestic helper has been working in Singapore as a foreign domestic helper for more than 12 months in a row.
9 Available for Income Domestic Helper, Standard or Enhanced Plan.
10 The accidental death or permanent disability suffered by your domestic helper due to an injury must happen within 12 months from the date of the accident. The amount of benefit payable is subject to the scale of compensation in the policy contract.
11 The final claim amount you will receive depends on the relevant pro ration factor applicable to the eligible hospital and surgical expenses being claimed. Please refer to the policy conditions for the pro ration factor table.
12 For cover on inpatient hospital and surgical expenses only. Please refer to the policy conditions for more details.
13 If your pet is below six years of age at the start of the first policy year, we shall cover the following specified hereditary and congenital conditions after a 12-month waiting period from the start date of the policy, provided they are not pre-existing medical conditions:
(i) Hip and elbow dysplasia
(ii) Luxating patella
(iii) Glaucoma
(iv) Cherry eye
(v) Intervertebral disk disease (IVDD)
(vi) Conditions which require femoral head and neck excision
14 We will pay for this benefit if you are legally responsible for the following which is accidentally caused by your pet in Singapore:
- Bodily injury to any person
- Loss or damage to property
We will pay:
- The legal costs and expenses for representing you; and
- The amount awarded against you by the court in Singapore
Exclusions apply.
This article is meant purely for informational purposes and should not be relied upon as financial advice. The precise terms, conditions and exclusions of any Income Insurance products mentioned are specified in their respective policy contracts. For customised advice to suit your specific needs, consult an Income Insurance advisor. This advertisement has not been reviewed by the Monetary Authority of Singapore.
These policies are 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 Income Insurance or visit the GIA/LIA or SDIC websites (www.gia.org.sg or www.lia.org.sg or www.sdic.org.sg).
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