HDBIs Your HDB Home Insured? Here’s What You Need To Know Before Moving In
Why would you not buy home content insurance for a few hundred dollars to protect a home which you have spent thousands of dollars on?
This article was written in collaboration with AXA. All views expressed in the article are the independent opinion of DollarsAndSense.sg
In Singapore, many of us own our own homes. The majority of us live in HDB flats where we spend a good amount of time choosing the right flat that we wish to live in, getting the right interior designer to help us achieve the dream home that we want and of course, spending time and money in furnishing our home to the best of our abilities. In fact, HDB flat owners can easily spend $50,000 or more renovating their home.
However, some homeowners pay lesser attention to the insurance coverage for their flat. Yet, not insuring our homes is one of the biggest financial mistakes that we can make.
Your HDB Flat Is NOT Automatically Insured
Some HDB owners have the misconception that their HDB flats are automatically insured. They are wrong. Our HDB flats are not automatically insured.
What leads to this misconception is due to the fact that HDB flat owners do need to buy a compulsory basic fire insurance policy to cover the internal building structures, fixtures and fittings provided by HDB, if they have an existing HDB mortgage loan. This leads some flat owners to think that their flat is insured, even when it’s not.
The basic fire insurance policy does not cover our renovation work, additional fixtures installed or household content. If a fire, pipe burst, explosion or any other incident occurs, the damages sustained will have to be borne by us, the flat owner, unless we have bought a separate home content insurance.
In addition, we may also be liable for any third-party damages caused to your neighbours’ homes, if we are found to be responsible.
By not having home content insurance to protect our homes, we, as flat owners, run the risk of incurring a heavy financial loss if our homes are damaged.
HDBIs Your HDB Home Insured? Here’s What You Need To Know Before Moving In
Why would you not buy home content insurance for a few hundred dollars to protect a home which you have spent thousands of dollars on?
This article was written in collaboration with AXA. All views expressed in the article are the independent opinion of DollarsAndSense.sg
In Singapore, many of us own our own homes. The majority of us live in HDB flats where we spend a good amount of time choosing the right flat that we wish to live in, getting the right interior designer to help us achieve the dream home that we want and of course, spending time and money in furnishing our home to the best of our abilities. In fact, HDB flat owners can easily spend $50,000 or more renovating their home.
However, some homeowners pay lesser attention to the insurance coverage for their flat. Yet, not insuring our homes is one of the biggest financial mistakes that we can make.
Your HDB Flat Is NOT Automatically Insured
Some HDB owners have the misconception that their HDB flats are automatically insured. They are wrong. Our HDB flats are not automatically insured.
What leads to this misconception is due to the fact that HDB flat owners do need to buy a compulsory basic fire insurance policy to cover the internal building structures, fixtures and fittings provided by HDB, if they have an existing HDB mortgage loan. This leads some flat owners to think that their flat is insured, even when it’s not.
The basic fire insurance policy does not cover our renovation work, additional fixtures installed or household content. If a fire, pipe burst, explosion or any other incident occurs, the damages sustained will have to be borne by us, the flat owner, unless we have bought a separate home content insurance.
In addition, we may also be liable for any third-party damages caused to your neighbours’ homes, if we are found to be responsible.
By not having home content insurance to protect our homes, we, as flat owners, run the risk of incurring a heavy financial loss if our homes are damaged.