As most homeowners would know, it takes a long time to build a home. But what most may not realise is that it takes an even longer time to rebuild it. Just like your financial portfolio, it is important to review your home insurance on a regular basis to ensure you have the right amount of coverage.
A home insurance review, in a nutshell, is asking yourself if you have enough for repairs or rebuilding if an emergency happens tomorrow. It is a good practice to take stock of the changes to your home on a regular basis, just to ensure you are not over or under-insured. While the best practice is to do this annually, a home insurance review is in order when any of the five scenarios below occur.
1. A change in property value
If the last time you thought about home insurance was when you first moved in 10 years ago, chances are – you’re underinsured. Your property value and home insurance coverage go hand in hand. When one increases, so should the other.
Imagine this. Your house which you insured for S$300,000 10 years ago got decimated in a fire and now costs S$450,000 to rebuild. Would you have enough?
If your coverage remains outdated and an emergency happens, you risk paying the difference out of your own pocket. For most of us, our homes are our largest assets. So why leave it to chance when you can play it safe?
#TiqOurWord Home insurance doesn’t have to be expensive. With Tiq Home Insurance, you can protect your home and its contents from as low as S$28 for a customisable one year plan.
2. Home improvements and renovation
Recently gave your 20-year old kitchen a major makeover that features new tiles and custom carpentry? Or maybe you have decided to convert one of your rooms into a home theatre complete with an entertainment system and soundproof windows?
If you have made or are planning to make major improvements to your home, do include the costs of replacing any fixtures, appliances or electrical/plumbing systems into your home insurance coverage as these are usually significant investments.
#TiqOurWord Planning for a renovation? Find out how you can save money, time and space with these 10 home improvement hacks.
3. Increase in personal belongings
Used the recent Black Friday and 12.12 sales as an excuse a reason to splash on tech gadgets or expand your watch collection? Consider increasing your coverage if you have purchased high value items such as electronics and jewellery.
Conversely, if you are a firm believer of anti-consumerism or a Marie Kondo fan who refuses to taint your minimalist home with additional clutter, check your coverage. You could be over-insured and paying for things you do not need.
#TiqOurWord Enjoy flexible and comprehensive coverage options with Tiq Home Insurance, where you can insure renovations for up to S$1,000,000 and your home contents for up to S$150,000!
4. Lifestyle changes
If you, like many others, decided to turn your hidden culinary talent into a home-based business this year, it is advisable to get additional coverage for your expensive equipment (a S$900 KitchenAid mixer, anyone?) especially since your income depends on it.
And if you have been putting your appliances through some serious mileage, consider getting the Multi-Appliance Home Protector add-on that covers repairs of home appliances such as built-in ovens and refrigerators.
A change in household members could also trigger a review. Welcomed a new family member or became an empty nester? When people move in or out, they bring their belongings with them.
Depending on the scenario, you may need more or less coverage for your home, so adjust accordingly to make sure you are appropriately insured.
#TiqOurWord Plan early. If you do not foresee any major changes to your lifestyle and home, Tiq Home Insurance plans with a 3 to 5 year policy period are not only cheaper but also include a complimentary 24-hour Emergency Home Assistance service.
5. Home rentals
What if you do not own a home and you are renting from someone else instead? Do you still need home insurance? Unless you can fit all of your belongings into a backpack, getting home insurance would most definitely be beneficial.
For starters, it covers your belongings in the event that it is damaged by fire, flood or other disasters. On top of that, most plans also include personal legal liability, which in translation, means that you are covered if you accidentally damaged your landlord’s property.
Don’t worry about paying for additional items that you do not need as Tiq Home Insurance offers specific plans for tenants that focus on coverage for home contents instead of building and renovations.
Similarly, there are plans targeted at homeowners or landlords that cover renovation and building works but not home contents since those would be borne by the tenants.
For landlords, it is even more important to ensure your home insurance is up to date as you have the unique additional risk of bad tenant behaviour that could lead to damages and significant financial loss.
#TiqOurWord Fires can cause damage beyond your home and into your neighbours’. It is important to ensure you have personal legal liability included in your home insurance, as this would help to cover the amount of compensation you are required to pay in the event of property damage or injury to others.
Do you really need a home insurance review?
Do not underestimate the importance of a home insurance review. Reviewing your plan regularly (at least once a year) prevents you from paying more than you need and gives you time to top up your coverage when your needs have changed. Ultimately, this helps you save more in the long run by ensuring you are well protected should anything unfortunate happen.
Information is accurate as at 30 December 2020. This policy is underwritten by Etiqa Insurance Pte. Ltd. (Company Reg. No. 201331905K). Protected up to specified limits by SDIC.
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A digital insurance channel that embraces changes to provide simple and convenient protection, Tiq’s mission is to make insurance transparent and accessible, inspiring you today to be prepared for life’s surprises and inevitabilities, while empowering you to “Live Unlimited” and take control of your tomorrow.
With a shared vision to change the paradigm of insurance and reshape customer experience, Etiqa created the strong foundation for Tiq. Because life never stops changing, Etiqa never stops progressing. A licensed life and general insurance company registered in the Republic of Singapore and regulated by the Monetary Authority of Singapore, Etiqa is governed by the Insurance Act and has been providing insurance solutions since 1961. It is 69% owned by Maybank, Southeast Asia’s fourth largest banking group, with more than 22 million customers in 20 countries; and 31% owned by Ageas, an international insurance group with 33 million customers across 16 countries.
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