Are you wondering whether you need home insurance coverage? The simple answer is yes. Home insurance ensures you do not have to worry about damage to your home and personal belongings if a disaster strikes. The best home insurance in Singapore protects you from accidents and disasters that your home might be vulnerable to.
The average cost of home insurance in Singapore is S$145. In this article, we will look at the best home insurance covers in Singapore and compare their unique benefits based on their value. We will look at the top picks for homeowners of condos, HBD, and landers based on their coverage and prices.
See Also: Buying Property in Singapore and Best Home Loan in Singapore 2022.
What Does Home Insurance Cover?
While most might think home insurance is a luxury, it is necessary. It not only protects your home and personal belongings from theft or damages, but almost all mortgage companies require you to have home insurance coverages for the fair value of the property. They will often not finance your mortgage without one. Many landlords also need tenants to maintain a renter’s home insurance coverage.
Here is a summary of what your home insurance will cover and what it won’t:
| Covered | Not Covered |
|---|---|
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Factors That Affect Home Insurance Coverage Needs
While the cost of home insurance is affected by rising construction costs, increases in natural disasters, and inflation, some fundamental factors affect the rate of your home insurance cover. Here is a look at some key factors that will affect your home insurance cost:
1. Your Home’s Location
The location of your home is the most significant factor that home insurance providers use to determine your insurance premiums. Say you live in an area where it is prone to natural disasters such as tornadoes, hurricanes, and wildfires, and you are likely to pay higher insurance risk premiums.
The policy rates also tend to be higher in urban centers than in rural or suburban areas since homes tend to cost more in cities since they are densely populated.
2. Your Homes Replacement Cost
The replacement cost is the total cost it would take to rebuild your home with similar materials of the same quality. The rebuild value or the replacement value is based on many factors, including:
- The number of rooms
- The age of your home
- Square footage
- Architectural style
- Number of rooms
- The local rebuild cost in your residential area
It is important to note that the replacement or rebuild value is not the same as the home market value. The home market value refers to how much the home would sell in the real estate market.
3. Your Policy Deductible
Your policy deductible refers to the amount you are responsible for paying before the insurance company covers the remainder of the loss. This means the higher your policy deductible, the lower your home insurance premiums.
4. Your Roof’s Condition
The condition and age of your roof will impact your policy premiums significantly. A new roof means that your home is better protected from natural elements than an older roof. Insurers will often offer policy discounts if your roof was constructed over a certain number of years or is constructed with fortified roofing materials.
5. Claims History
Filing a claim in three to five years should not affect your premiums, but you should be careful not to file too many. Most insurers view the history of frequent claims as a huge red flag.
It is also important to note that water damage, theft, and dog bit claims can significantly impact policy premiums.
6. The Age of Your Home
New homes will have lower insurance premiums since they are less likely to file for claims than older homes with outdated systems.
7. Home Security and Safety Features
You will likely receive a discount if you install a security or safety system since it reduces the risk of home insurance claims. You will probably have lower insurance rates if your home is more secure.
8. Your Credit History
Insurers also run their credit check to evaluate the risk of insuring you. If you have good credit, you are considered a less insurance risk than when you have bad credit. Homeowners with a low credit score are more likely to file for insurance claims than those with higher credit scores. Those less prone to file claims tend to have lower insurance rates. Also, see our guide on how to improve your credit score.
Best Home Insurance in Singapore
Here is a look at the best home insurance covers in Singapore based in rates and comprehensiveness.
- Tiq Home Insurance :Most affordable home insurance policy for HBD flats
- FWD Home Insurance : Best for the average Condo or HBD owner
- Singlife with Aviva Home Insurance: Best home insurance with high content and renovation limits
- Income Home Insurance (Previously NTUC Income): Most cost-effective solutions for average homeowners
- AIG Home Insurance :Best for high-value homes
Singapore has a wide range of home insurance providers. However, Tiq Home Insurance has the most affordable insurance premiums for basic consumers. Tiq offers the cheapest insurance policies for HBD flats and is designed to cover the most common household problems, including valuables coverage and emergency cash allowance.
Here is a look at the best insurance providers in Singapore:
1. Tiq Home Insurance: Most Affordable Home Insurance Policy for HBD Flats
Tiq Home Insurance is one of the highest-value insurance policies for the average private property and HBD owners. It offers high sub limits, unique benefits, and competitive prices. Additionally, it provides a customizable 1,3, or 5-year home insurance plan for landlords, the owner occupies, and tenants with the option of choosing the different amounts of renovations, building, and content coverage.
Tiq is an excellent option for those looking for comprehensive no-frills coverage. They also have a market-leading home-assistance service that helps with significant home repairs, including electricity, plumbing, pest control, and locksmith issues. It also offers emergency home assistance services and is an excellent option for a cost-conscious or first-time homeowner who wants protection from common ownership problems.
Here is a summary of the premiums and coverage for:
HBD Homeowners
| HDB Type | Renovation Coverage | Contents Coverage | Annual Premium |
|---|---|---|---|
| 3-Room | S$60K | S$35K | S$72.79 |
| 4-Room | S$80K | S$45K | S$ |
| 5-Room | S$140K | S$90K | S$96.52 |
| Industry Average | S$50,623 | S$125,989 | S$157.00 |
Property Owners
| Condo | Building Coverage | Renovation Coverage | Contents Coverage | Premium |
|---|---|---|---|---|
| 2 Bedroom | S$300K | S$100K | S$50K | S$123.03 |
| 3 Bedroom | S$500K | S$300K | S$75K | S$213.42 |
| 4 Bedroom | S$1M | S$400K | S$100K | S$273.87 |
| Landed (Bungalow) | S$1M | S$300 | S$150K | S$722.51 |
| Industry Average | S$54,896 | S$136,695 | N/A | S$186.00 |
Landlords
| Housing Type | Renovation Coverage | Annual Premium |
|---|---|---|
| 3-Room HDB | S$60,000 | S$80.01 |
| 4-Room HDB | S$100,000 | S$99.92 |
| 5-Room HDB | S$140,000 | S$118.93 |
| 2-Bedroom Condo | S$100,000 | S$132.51 |
| 3-Bedroom Condo | S$300,000 | S$188.51 |
| 4-Bedroom Condo | S$500,000 | S$244.51 |
Tenants
| Housing Type | Content Coverage | Premium |
|---|---|---|
| 3-Room HDB | S$35,000 | S$51.56 |
| 4-Room HDB | S$45,000 | S$56.81 |
| 5-Room HDB | S$60,000 | S$62.55 |
| 2-Bedroom Condo | S$30,000 | S$60.43 |
| 3-Bedroom Condo | S$60,000 | S$92.62 |
| 4-Bedroom Condo | S$90,000 | S$124.81 |
2. FWD Home Insurance: Best for The Average Condo or HBD Owner
FWD Home Insurance is ideal for the average Condo or HBD owner since it is competitively priced and covers all the necessary bases. Its rates are45 to 51% lower than the industry average, even with full content and renovation coverage. Additionally, it lets you customize your policy based on renovations, number of rooms, and building coverage allowing much-needed flexibility on how much coverage you want for your home.
Landlords and renters have their home insurance plans customized according to their needs. You get to choose your coverage limit, so you will need to know the amount you will need to cover everything well. It is also important to note that FWD home insurance does not penalize under insuring. Under insurance is when the cover is less than the actual value.
Here is a summary of the premiums and coverage by FWD Home Insurance:
HBD and Private Homeowners
| Home Size | Contents Coverage | Renovation Coverage | Building Coverage | Annual Premium |
|---|---|---|---|---|
| 3-Room | S$20K | S$40K | N/A | S$44.58 |
| 4-Room | S$40K | S$60K | N/A | S$69.38 |
| 5-Room | S$60K | S$80K | N/A | S$98.87 |
| Multi-Gen | S$80K | S$100K | N/A | S$123.71 |
| HDB Industry Average | S$50,623 | S$125,989 | N/A | S$157.00 |
| 2-Bed | S$20K | S$40K | N/A | S$40.36 |
| 3-Bed | S$40K | S$60K | N/A | S$79.74 |
| 4-Bed | S$60K | S$80K | N/A | S$109.27 |
| Condo Industry Average | S$54,896 | S$136,695 | N/A | S$186.00 |
Land Property Owners
| Home Size | Contents Coverage | Renovation Coverage | Building Coverage | Annual Premium |
|---|---|---|---|---|
| Terrace | S$60K | S$100K | S$400K | S$301.87 |
| Semi-Detached | S$80K | S$100K | S$600K | S$412.12 |
| Bungalow | S$100K | S$100K | S$1M | S$601.13 |
| Landed Property Average | S$77,500 | S$113,462 | S$846,154 | S$570.00 |
Landlords and Tenants
| Building Coverage | Price |
|---|---|
| HDB Renovation per S$20,000 | S$6.04 |
| Private Renovation per S$20,000 | S$7.40 |
| HDB Contents per S$20,000 | S$24.61 |
| Private Contents per S$20,000 | S$29.53 |
3. Singlife with Aviva Home Insurance: Best Home Insurance with High Content and Renovation Limits
Singlife with Aviva Home Insurance offers the best value for your money with high content and renovation limits. It is ideal for homeowners looking for no-frills home insurance. It is, however, not the best option for landlords and renters since it does not offer separate contents and renovation coverage.
Its home insurance plans are ideal for 4 to 5-room HBD owners due to the high renovation and content coverage limits. Owners of small flats might end up overpaying for the coverage. Even with the high coverage limits, the rates are 30 to 65% below the average industry rates.
Here is a summary of Singlife with Aviva Coverage and Premiums for:
HBD Homeowners
| Home Size | Contents Coverage | Renovation Coverage | Annual Premium |
|---|---|---|---|
| 4-Room (Home Lite) | S$35K | S$75K | S$55.50 |
| 4-Room (Home) | S$50K | S$100K | S$94.00 |
| 5-Room (Home Plus) | S$100K | S$100K | S$169.00 |
| Industry Average | S$50,623 | S$125,989 | S$157.00 |
Private and Land Property Owners
| Home Size | Contents Coverage | Renovation Coverage | Building Coverage | Annual Premium |
|---|---|---|---|---|
| 2-Bed (Home Lite) | S$35K | S$75K | N/A | S$55.50 |
| 3-Bed (Home) | S$50K | S$100K | N/A | S$94.00 |
| 4-Bed (Home Plus) | S$100K | S$100K | N/A | S$169.00 |
| Landed (Home Plus) | S$100K | S$100K | N/A | S$169.00 |
| Industry Average | S$54,896 | S$136,695 | N/A | S$186.0 |
Landlords and Tenants
Singlife with Aviva home insurance does not only allow you to buy a renovation or a contents plan. Customers will therefore be forced to purchase both, meaning most landlords who rent out furnished flats will buy a cover they will not use.
Singlife by Aziza also offers additional coverage that might be a great idea to add to your policy. Here is an overview of the add-on options:
| Add-on Option | Cost | Coverage | Market Avg. |
|---|---|---|---|
| Family Personal Accident | S$25 | S$50,000 | S$50,000 |
| Identity Theft | S$15 | S$2,500 | S$3,417 |
| Food in Freezers | S$15 | S$500 | 451 |
| Replacement Keys & Locks | S$15 | S$500 | 631 |
| Bicycles | S$15 | S$300 | S$723 |
| All risk policy covers | S$75 | NA | NA |
4. Income Home Insurance (Previously NTUC Income): Most Cost Effective Solutions for Average Home Owners
Income Home Insurance is an excellent option for small flat homeowners on a budget. The insurance is among the cheapest for smaller and 3-room HBDs, and it supplements HBD fire insurance. Homeowners and tenants can renovate and purchase content and building coverage in S$10,000 increments, making it easy to ensure that you are not over or under insured.
Income Home Insurance is the perfect policy if you want to be protected from home damages and renovations. It benefits newly renovated flats and offers debris removal and professional fees when your home needs to be surveyed. It also provides other benefits like pet coverage, personal accidents, and domestic worker belonging at an extra cost.
Income Home Insurance is, however, not appealing to homeowners with private or large flats looking for rock-bottom prices or highly valuable coverage.
Here is a look at Income Home Insurance Coverage and premiums for:
HBD Homeowners
| Home Size | Contents Coverage | Renovation Coverage | Premium |
|---|---|---|---|
| 3-Room | S$20K | S$40K | S$38.93 |
| 4-Room | S$30K | S$60K | S$72.95 |
| 5-Room | S$40K | S$70K | S$106.98 |
| Multi-Gen | S$50K | S$80K | S$141.00 |
| Industry Average | S$50,623 | S$125,989 | S$157.00 |
Private and Landed Property Owners
| Home Size | Contents Coverage | Renovation Coverage | Building Coverage | Premium |
|---|---|---|---|---|
| 2-Bed | S$50K | S$70K | N/A | S$123.03 |
| 3-Bed | S$70K | S$90K | N/A | S$169.04 |
| 4-Bed | S$100K | S$150K | N/A | S$250.06 |
| Landed (Bungalow) | S$80K | S$250K | S$1M | S$652.25 |
| Industry Average | S$54,896 | S$136,695 | N/A | S$186.00 |
Landlords and Tenants
| Coverage | Price |
|---|---|
| HDB Renovation per S$10,000 | S$2.45 |
| Private Renovation per S$10,000 | S$4.00 |
| HDB Contents per S$10,000 | S$14.52 |
| Private Contents per S$10,000 | S$18.95 |
5. AIG Home Insurance: Best for High-Value Homes
AIG Home Insurance is designed for multiple property owners with a million-dollar-plus home or working towards a custom estate. This is not your plan if you are looking for basic home insurance. It offers three AIG home insurance plans: Enhanced Public housing contents insurance (for HBD homeowners), Home Advantage, and Home Complete.
Here is an overview of how the three plans compare:
| Enhanced Public Housing Contents Insurance (for HDB only) | Homes Advantage | Homes Complete | |
|---|---|---|---|
| Designed for | HDB flat owners | Homeowners and landlords for all types of residences | Renters and those wishing to insure homes contents and personal belongings only |
| Key benefits |
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| Premium | Per year: S$70.62 | Per year:
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| Remarks | Available as a 5-year package to match your compulsory HDB fire insurance. | Provides cover for contents in commercial storage locks and keys, loss of personal money, fire-fighting appliances, security system, frozen food spoilage | It also provides cover for the following:
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Essential Tips When Choosing A Home Insurance
While home insurance is not compulsory by law, it is one of the best things you can ever get to ensure that you protect your home from a fire breakout ( it is an addition to fire insurance) or natural calamity.
Homeowners insurance covers all the contents on your home damages or lost as a result of an insured peril. Here are some essential tips you can use to choose the best home insurance:
1. Ensure You Understand the Insurance
This might come as a surprise, but most people do not understand how home insurance works. You need to know how the policies work to compare home insurance plans and choose the best. Only when you know the policies will you be able to negotiate for better terms or assess your requirements.
2. Assess Your Needs
Before shopping for your home insurance, ensure you understand and assess all your needs. You can speak to an agent or gather the required information online to understand what your cover will require. Due diligence is vital when you are buying insurance.
3. Compare Home Insurance Policies
Once you understand the requirements, you can now start shopping around for the best cover. Start by looking at covers from reputable insurance providers and list the policies that fit your needs. After that, you will need to compare home insurance policies based on limits, covers, exclusions, deductibles, and rates.
4. Consider the Financial Strength of Your Insurer
Choosing a financially strong insurer ensures that your claims will not suffer if they are hit with a financial problem. So ensure that you are aware of the financial background of your insurer to guarantee a smooth and hassle-free claim settlement.
5. Claim History of Your Insurer
Make sure you check the claim history of your insurer before purchasing any insurance policy. The claim settlement history will give you an overview of the number of claims the company has settled over the years against the claims they receive.
6. Fill in Your Form Correctly
You must ensure that you fill in all the questions accurately. Do not guess about anything. Your answers will determine whether you get the right policy or not. Additionally, inaccurate information can lead to claim rejection. Insurance companies consider only what is stated n the original form.
Is Home Insurance Mandatory?
No.
The law does not require you to have home insurance, but a financial institution needs it to qualify for a mortgage.
Home Insurance Vs. Fire Insurance Vs. Home Contents Insurance
HBD fire insurance or any other type of fire insurance covers the damage done to the original building structure (but not the foundations) of a building due to a fire but does not provide coverage for loss or damage of your home, while home insurance covers the home contents, the building structure, added fixtures and fittings, and cover renovations as well. Content insurance, on the other hand, may vary depending on whether you are the property owner’s tenant.
Closing
Home insurance protects your home from damage or theft. It covers the entirety of your home and its possessions. While it is not compulsory by law to get home insurance, most banks require you to have one before getting approved for a mortgage. To have home insurance, you do not have to be a homeowner, and their policies cover tenants.
Key Takeaways
- Home insurance rates are determined by the neighborhood, home condition, the insurer’s risk, and the past claim history of the home.
- Before setting up a home insurance policy, compare quotes from at least five insurance companies.
- You can increase your policy deductibles to reduce your premiums.
- The best home insurance in Singapore is Tiq Home Insurance. It is comprehensive cover with the best best rates in the market.
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