Home Insurance- Needs or Wants?
Over the years, we have seen a rise in enquiries on Home Insurance.
Here, we aim to simplify this topic and also debunk certain myths that come alongside it.
Towards the end of the article, we will suggest certain useful tips for home owners to consider when it comes to dealing with home insurance.
Enhanced Home Insurance- - this is a commonly neglected and misunderstood term.
Three Truths to this:
First Truth: Mortgage Insurance is not Home Insurance
Home insurance is not your typical mortgage insurance policies that you obtain when you take up a home loan often with the banks. Mortgage insurance covers the death of the homeowner against the loan he has taken. So in case something unexpected happens (such as demise) the policy will pay out an insured amount used to redeem the outstanding loan.
Second Truth: Home Insurance (Insured Perils) is just a subset of Enhanced Home Insurance
The usual Home Insurance (insured perils) only cover certain incidents such as fire, flooding and also act of God. And one point worth to note is these events must originate from your own home and if it’s something being affected by your neighbor, it will not be covered. Just like what the famous saying says, you can control what goes on inside but you can’t control what goes on on the outside. What if neighbors are not careful and your home is implicated? What if in the midst of firefighting efforts, your home is also being affected?
Most fires happen not just due to one’s mistake but surrounding houses.
Third Truth: Enhanced Home Insurance covers everything that you every need in a Home
What about my renovation? My belongings and also precious spiderman collectibles? Sorry to say that Home Insurance (insured perils) does not cover all these on the inside of your home. But if you have an Enhanced Home Insurance Policy, this kind of coverage typically covers most of the risks you need - fire caused by you, neighbors’ home catching fire, renovation, collectibles, valuables etc….the list goes on.
One key requirement is to know how the much coverage is needed in order to cover the risks, whether you need a new place or alternative accommodation when your place undergoes restoration.
If you wish to get a report on the various pricing and analysis of the most comprehensive enhanced home converge out there, drop us a note and we will send them right to you.
(by Senior Financial Services Director of Infinity FA: Bryan Tong)