Property Jargon of the Day: Home Content Insurance

Every day, 99.co takes a piece of property jargon and demystifies it. Today, we’re looking at home content insurance.

What is home content insurance?

Home content insurance is different from home insurance as it covers the financial cost of repairing or replacing household items. The items range from small items such as toys to bulky items such as sofas. Home content insurance covers household items belonging to you and your family members living with you.

These policies do not usually include cover for friends or visitors’ items. So if you want to cover for them, you have to add their names to the list.

Should you buy it?

Homeowners and renters should buy home content insurance. Homeowners can buy it as a stand-alone product or under home insurance. In addition, renters can also purchase low-cost renter’s insurance policies.

Also, landlord’s insurance policies will not cover possessions for renters or tenants.

What do home content insurance cover?

1. Perils covered:
   • Fire
   • Flood
   • Theft
   • Earthquake & Lightning
   • Explosion
   • Bursting or overflowing of water pipes or household apparatus
   • Vehicle impact
   • Riot, strike or civil commotion

2. Repairing or replacement of broken or stolen items. For example, you will receive money to repair your house and buy new furniture.
3. You will be provided with temporary accommodation (maximum up to 30 days) and storages. In addition, you are entitled to emergency cash allowance (after 3 days & above).
4. Personal legal liability. It covers any accidental body injuries or damage to 3^rd party property caused by you. In other words, you are responsible for your neighbours and visitors.
5. Loss of personal money, credit, debit cards and personal papers. You will receive money to pay for the replacement of such items. However, the loss has to be caused by insured peril at the residence covered.
6. It does not limit to bulky and expensive items and covers minor costs such as price of locks. For example, you will be compensated for the spoilt and rotten groceries.
7. Cost of removing debris which results from loss or damage. It is a myth that SCDF will clear the rubble. As a result, you will have to pay companies to clear your debris. In other words, it is more detrimental and costly for landed properties because they are private properties and bigger.
8. The cost of replenishment of firefighting appliances in your home.
9. Be careful of caveats. Some content insurance will not cover renovations on the house. Any damage is claimed from contractors. However, there are actually some companies who provide household improvements.
10. You will be covered for the accidental loss or death of your pets. However, do check with your insurance company as some companies do not insure this.

Is it worth to invest in home content insurance?

Unlike fire insurance, home content insurance is not mandatory. It generally costs only a few hundred dollars for a year. Some home content insurance comes with personal accident plan. Since it protects and covers for a range of home items, you should get it.

What bits of property jargon would you like to learn more about? Let us know in the comments section below.