Fire Insurance: Get Better Coverage Using Your Home Insurance

All HDB flats in Singapore are covered under a mandatory HDB Fire Insurance provided by FWD. The premium ranges from S$1.62 to S$8.10 for 1-room flats to executive units. The policy does not cover your personal home contents, thus the payout will only be used to pay for the repairs of structural damage, fixtures and any other HDB assets.

 

In the event that an HDB flat is burned down, the owners will be left with plenty of financial burdens. Rent for temporary accommodations, renovation and replacing of furniture and personal items will rack up a big bill. How to avoid such a situation? Purchasing a home insurance will cover the loss of personal content and other cost incurred in the event of a fire. 

 

What to Look Out For?

Flat Size

Depending on the size of your flat, the insurance premium will differ. Do compare your flat size among the providers to find the best price if the price is an important factor.

Income Home Insurance

Income home insurance has one of the lowest premiums payable for smaller flats. For 3-room flats, the premium is 58% lower than the market average and offers great value for the price.

 

Coverage

Some home insurance policies may offer attractive premiums that seem too good to be true. This is achieved by cutting out some of the coverage that you may find may need. Look into whether you can live without having specific coverage and make a sound decision on your home insurance.

 

Etiqa Tiq Home Insurance

Etiqa’s Tiq Home Insurance does not have the lowest premium price as compared to some alternatives. However, If you opt for the 3 and 5-year plans, Etiqa will offer S$800 of emergency home assistance coverage for locksmith, plumbing, electrical and pest control services. Furthermore, Etiqa offers S$5,000 of emergency cash service that will be deposited into your e-wallet within 1 business day. With all these payouts, it will be easier to return back to normal life without much financial burden.

 

AXA SmartHome

AXA SmartHome offers some interesting coverage that is not commonly seen. This plan will cover home renovation, home content and allows you to customise how you utilise your claims. AXA also includes a professional consulting fee in case your property gets damaged.

 

Others

Beyond the common coverages, you may find yourself in situations where you need additional coverage. Pet owners may find themselves looking for policies to insure their pets in the event of a fire. Personal liability may be considered for fear of the fire spreading and policyholders needing to compensate for the damages incurred by their neighbours. 

 

Rent vs Own

For individuals renting a property, they should consider purchasing home insurance that is geared towards insuring their personal content. Landlords will benefit from home insurance that covers more of the renovation costs and homeowners should be concerned about both aspects.

 

In conclusion, home insurance is important for both homeowners and renters to protect themselves from financial woes after a fire. With housing being one of the biggest assets for an average Singaporean, spend a bit more on your home insurance to be well protected.

 

Which Type of Term Life Insurance Is Suitable for You?

What is term life insurance? It is basically life insurance, but the coverage is only for a fixed time period. Term life insurance is usually the most affordable type of life insurance as its benefits are limited to a fixed period. In most cases, the term life insurance policies are likely to expire before a death benefit is paid out. With the basics explained, now how do you know which type of term life insurance policy is the most suitable for you?

 

This article will be briefly explaining three types of term life insurance. The first type is level term policies, also known as level-premium policies. 

 

Level term policies provide coverage for a specified period where the premium remains the same over the policy’s duration. 

 

The next type is a yearly renewable term. This type of policy is a term life insurance policy that has a period of one year, where policyholders are given a new quote for each new year the policy is renewed. The premium increases along with the age of the insured. For example, someone who is 20 years old would be paying x amount of money and if he renews the same policy at 21, he will have to pay a recalculated premium according to his age at 21. 

 

The last type of term life insurance this article would be featuring is the decreasing term insurance. This type of policy has decreasing coverage over time. This means that the premium decreases along with a declining death benefit. 

 

After briefly explaining about the three types of term life insurance, how do you choose which type of policy would be the most suitable for you? 

 

There are four things to consider to help in your decision making. 

1) Your Current Life Stage

  • Analyze your current stage in life, some possible factors to consider include your age and the number of dependents you have. Think about how many livelihoods depend on you, do you have children? Are you married? These are some questions that will help in your analysis of your current life stage. 

2) Your Current Lifestyle

  • Next, analyze your current lifestyle. This analysis would include taking a look at your spending habits, and your general standard of living. With a clearer view of your lifestyle needs, you will be able to better decide what type of coverage you require and choose the policy type that is best suited for you. 

3) Your Current Financial Status

  • Another important area to focus on will be your current financial status. As everyone has their own financial responsibilities, it is crucial to analyze your income along with your responsibilities to make sure you are making an informed decision when choosing the type of policy for you. 

4) Your Existing Liabilities

  • Another important factor to consider is your current liabilities such as any outstanding debts. It is important to ensure that choosing a policy does not bring excessive financial burden to you when it is supposed to be giving you a peace of mind. 

 

How To Prevent A HDB Fire

For many Singaporeans, their property is their most valuable asset, given the sky-high prices of residential homes in Singapore. We want to protect our homes from any damage or wreckages at all costs.

How To Prevent A Fire At Home 

 

One disastrous event which could lead to a whole home being ruined is the deadly threat of fire, which is unfortunately relatively common. Anything like a child playing with lighters or candles, an unattended stove, or a faulty piece of equipment could trigger a devastating fire. While, touchwood, we do not want this to happen, there are a few ways we could better protect ourselves, our families, and our apartments from this deadly threat.

 

Here are some of the good practices to adopt in order to minimize the risk of home fires. 

  • Install Smoke Detectors and Alarms in Your Home 

 

We are all only human, and it is not always easy for us to detect a leaky pipe or burning stove. Having smoke detectors installed could assist in giving us an early warning sign, so that homeowners can successfully put out the fire and salvage their homes and lives. 

 

Always remember to test them monthly to ensure that they are still in working condition. We do not want them to fail when we need them most. Setting them off annually and ensuring that everyone is able to escape from their rooms and the house safely is also a good practice. 

  • Declutter the passageways 

 

HDB hallways tend to be cluttered with objects like shoe racks, plants, bicycles and more. In the event of a fire, however, these could become major fire hazards, which could prevent your way of escape. Be sure to always have a clear walkway in the event of an emergency. 

  • Always Perform Tests and Checks on Heating Equipment at Home 

 

Faulty equipment like central wire and cord systems and stoves are one of the leading causes of home fires. It is essential that they are not left unchecked and neglected. A regular test and check of these equipment for early warning signs such as a short circuit could make all the difference. 

  • Store Flammable Objects in a Safe Place 

 

Many necessities we own are flammable. Some of them include hand sanitisers and cosmetics. We should always be sure to store them in their specified storage locations, usually a cool and dry place. Ensure that they are not in contact with water or lighters. 

  • Keep the Lighters Out of Reach of Children 

 

A small naked flame could spell big trouble, and lighters are usually the main cause of concern. If you have young ones at home, be sure to keep your lighters out of their reach, in case they mischievously play with the lighters and it gets into contact with flammable products. 

 

How Do I Better Protect Myself and My Home From This Threat?

 

You have heard of life insurance, health insurance, personal accident insurance. But have you heard of home insurance before? 

 

81% of Singaporeans live in a HDB, and it is important to pick out a suitable HDB home insurance to protect you, your family and your flat. 

 

To see a comparison between the most robust home insurance plans, our expert home insurance analysts have compiled their reviews on some of the most value-for-money home insurance plans for the HDB-dwellers. To better protect yourself and your home from deadly threats such as fire, visit our webpage for some of their top picks, at least one of which would surely be suitable for you! 

Term life Insurance: Everything You Need To Know Is Simplified For You.

Our experience with Covid-19 has given us multiple insights on risks and instability, with some more expensive than others, highlighting the ever-increasing importance and need for insurance. If you have short-term financial needs such as paying off debts and covering childcare costs, Term Life Insurance could be a good option for you. 

Term Life Insurance Policy gives your beneficiaries a cash payout upon your death. The insurance coverage is for a fixed period of time, typically between 10 and 30 years, or up to a certain age. Term Life Insurance does not have a savings and investment component, hence, companies can offer considerable death benefits at lower rates. 

Benefits: Lower premiums (Cheaper), Able to choose the duration of the policy (Flexible), Easy to understand (Simple)

Cons: Temporary Coverage (Not Long-Term), No Cash Value (Expires upon maturity) 

How Do I Know If Term Life Insurance Is For Me?

Assess how much coverage you need: 

It is important for you to calculate the amount of coverage you need before buying. This varies from person to person and depends on your income and liabilities. A reasonable amount of coverage would be six to ten times the amount of annual salary.

Assess if you are able to cover the premium costs: 

A general rule of thumb is to not spend more than 10% of your monthly salary on insurance. Spending more than this amount could potentially worsen your financial position.

Assess if your needs are covered if insured: 

A good measure of needs would be using the DIME method (Debt, Income, Mortgage and Education).

Debt: How much debt would you leave to your loved ones?

Income: How much is necessary for your family to remain financially stable even after the loss of your income?

Mortgage: How much mortgage would you leave behind?

Education: How much is needed to cover each of your children’s tuition and college fees?

When do I get Term Life Insurance?

The younger you are, the cheaper your Term Life Insurance premiums will be. Working adults will find the lowest premiums in their 20s, when they are less likely to be critically ill. Similarly, Term Life Insurance for children will be much cheaper. Many think that they are too young to seek Life Insurance. However, anyone with dependents will greatly benefit from buying a Life Insurance early on, by paying the least amount to insure the most financial protection to your loved ones in the case of an unfortunate event.

Conclusion

Term Life Insurance offers temporary coverage for temporary financial needs. However, Term Life Insurance does not cover every situation. It does not cover long-term nursing costs, medical costs when you are critically ill, or pay disability benefits. If you are looking for something more, you could benefit from other insurance plans.

If you are: A young newlywed couple, Sole financial provider of the family, Individual with significant debt, Unemployed parent or simply in need of temporary financial solutions, Term Life Insurance would be a good option for you.