Here’s a guide on how to determine the sum insured for:
- Building, Renovations, Fixtures and Fittings
A. Building, Renovations, Fixtures and Fittings
The sum insured should represent the reinstatement cost of the building, renovations, fixtures and fittings in the event of total loss. “Reinstatement” simply means the restoration of the building etc. to a former or original state.
To determine the cost to reinstate the building (e.g. a landed property), you may engage and pay a qualified property surveyor to survey your property and provide a building reinstatement cost report.
Alternatively, you may also calculate the sum insured for the building on your own. Here’s how:
- Determine your building Construction Floor Area (CFA).
CFA is the area of all building enclosed covered spaces measured to the outside face of the external walls including covered basement and above ground car park areas. You can obtain the CFA from the developer of your property or the Managing Agent in the case of a condominium unit (i.e. Strata Titled property).1
- To calculate the reinstatement cost valuation specific to your property type, you will need the construction cost for your property type (e.g. terrace house or condominium etc.), which is regularly published by the quantity surveyor. Here’s a link for your reference.
- After you have worked out the estimate cost of reinstatement for the building, you should also add in an estimate cost of renovating your home, which should also include fixtures and fittings such as electrical fittings, lightings and built-in furnishings etc.
- You may also refer here for an example.
The sum insured should represent the cost of replacing the same item when new. Contents should include any physical and movable items belonging to you and your family such as movable furniture (e.g. dining table and chairs), electrical items (e.g. TV, refrigerator) and personal items (e.g. notebooks and laptops).