Your home is one of the cosiest places where your heart lies, your memories create and, you and your family feel safe. While your apartment or house is your safe haven, it will need protection too.

If your apartment or house is damaged by an unforeseen event such as fire or water pipe bursts, a home insurance would be your financial shield against repair or replacement cost. Other than covering the building structure, home insurance such as HomeBliss also covers the improvements and additions (e.g. renovations) you made to your apartment or house, your household contents and personal effects.

The HDB Fire Insurance Scheme was introduced to help relieve flat owners of the financial burden of repair work in the unfortunate event of a fire.  The HDB fire insurance covers the cost of reinstating damaged internal structures, fixtures, as well as areas built and provided by HDB.  It does not include home contents such as furniture, renovations and personal belongings.¹

Buying home insurance such as HomeBliss, improvements and additions to your HDB apartment would be covered along with your furniture and household contents.  The other benefits² you get to enjoy include 24-hour Emergency Home Assistance such as plumbing assistance, replacement of laptops or mobile devices if these are damaged due to an insured peril, your legal liabilities to third parties that may arise due to an insured peril – just to name a few.
¹Source: https://www.hdb.gov.sg/residential/living-in-an-hdb-flat/fire-insurance
²Please refer to HomeBliss policy wordings.

If you reside in a condominium or an apartment registered as a Management Corporation Strata Title (MCST) property, it is the legal responsibility of your Management Committee (MC) to insure the entire property for fire damage.  If the property is damaged, the MC will make a claim on the insurance policy and use the claim amount to reinstate the property.

The MCST fire insurance policy may not cover the homeowners’ improvements and/or renovations made to their individual properties. Homeowners are encouraged to check the coverage of their MCST’s fire insurance policy and arrange for additional or separate fire insurance to cover improvements and/or renovations made.¹

Buying home insurance such as HomeBliss, improvements and additions to your apartment would be covered along with your furniture and household contents.  The other benefits² you get to enjoy include 24-hour Emergency Home Assistance such as plumbing assistance, replacement of laptops or mobile devices if these are damaged due to an insured peril, your legal liabilities to third parties that may arise due to an insured peril – just to name a few.
¹Source: https://gia.org.sg/help-support/property-insurance/101-mortgagee-interest-policy/421-what-is-the-difference-between-mip-and-mcst-fire-insurance.html
²Please refer to HomeBliss policy wordings.

Here’s a guide on how to determine the sum insured for:

• Building, Renovations, Fixtures and Fittings
• Contents

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.

¹source: https://gia.org.sg/property-insurance-faq/418as-a-general-guide-how-do-i-estimate-the-sum-insured-as-a-general-guide-how-do-i-estimate-the-sum-insured.html

B. Contents
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).

Underinsurance refers to insufficient insurance coverage that can leave the policyholder responsible for a large percentage of a total loss or expense and this can lead to financial hardship.  If a homeowner is underinsured and there’s significant damage to a residence, the insurance pay-out may not be enough to cover repairs or replacement.

Here’s an example to demonstrate how under insuring your home may affect you:
Mary’s property reinstatement value was $1 million.  As she felt that it would be unlikely that her home will be destroyed by fire or otherwise, she decided to insure her property for $300,000 only.  Unfortunately, a fire broke out in one of the bedrooms and the cost of repairs was $20,000.  As Mary only insured 30% of the property’s reinstatement value, HomeBliss will compensate Mary $6,000.  Mary will bear $12,000, which is the rest of the repair costs.

Calculating the percentage of insurance borne by the insurer:

Calculating the amount that the Insurer pays for the loss:

Yes, HomeBliss will cover the loss or damage to your building, renovations or contents caused by bursting of water pipes or tanks within your home, provided that it has not been left unoccupied for consecutive 30 or more days.  However, the cost of repairing the burst water pipes or tanks will not be covered by HomeBliss.

The loss and damage illustrated in this scenario will be covered by HomeBliss Enhanced Plan under the loss and damage caused by Insured Perils and accidental means clause.

Do note that HomeBliss Standard Plan only covers loss and damage caused by Insured Perils. Hence this plan will not cover for loss and damage caused by bursting of water pipes or tanks that are located outside your home.

The repair of the water-damaged cupboard is covered by HomeBliss Enhanced Plan under the loss or damage caused by Insured Perils and accidental means clause.  However, the cost of tracing of the source of water seepage will not be covered by HomeBliss.

HomeBliss Standard Plan only covers smoke damages caused by faulty operation of any heating or cooking unit in the Insured Dwelling.  Hence, for this scenario, it will not be covered.

However, if you have chosen HomeBliss Enhanced Plan, you will be covered under the smoke damage due to other reasons coverage, subject to the policy terms and conditions.