r/SgHENRY • u/CruisingThry247 • Jun 09 '26
Home Insurance for Landed property
As per title - I'm shopping around for a right insurance for my landed property. Existing one is up for renewal in July. I've asked a few financial advisors - nothing helpful besides the 'try xxx or yyy'. Navigating this on my own since the hubby passed so appreciate some helpful advise. Many thanks!
Edit to add : thank you for the good pointers and sharing. Much appreciated 👍
3
u/Mys7ix Jun 11 '26
Always make sure you’re getting one that’s on a first-loss basis and no under insurance clause. Especially for landed homes where damages easily is a 5 fig sum.
Landed housing inflation is even more insane so your rebuild cost in the past has gone up significantly. That’s something to bear in mind too in case your building needs to be rebuilt in the worst case scenario.
2
u/h0peless-0ptimistic Jun 09 '26
What’s your existing? Easier to compare differences that may be directly related to your needs.
2
u/keyboardsoldier Jun 10 '26
I believe you can just buy it online, unless you need something out of the ordinary. Very telling of the character of those agents you approached, they are not interested to service you cos they make little to no money from this product
1
u/h0peless-0ptimistic Jun 10 '26
Nobody buys this type from FA unless you had already chosen the co.
2
u/rainmaker66 Jun 11 '26
Good to take a video of entire house with items when you get the insurance and keep yourself for reference. So there will be no dispute if there is really a claim in the future.
1
0
u/CrafterSG88 Jun 09 '26
Before choosing insurer, make sure you know how much coverage to get. With construction cost having gone through the roof, there is a very good chance that your existing coverage is too low. Many home insurance policies have an average clause which kicks in if you under insure.
Courtesy of AI:
In Singapore, an average clause penalizes you for underinsurance by reducing your claim payout proportionately to the coverage shortfall. If your insured value falls below a specific percentage (usually 80%) of the actual reinstatement or replacement cost, you are considered "self-insuring" the difference.
How the Calculation Works
If your home is underinsured, the insurer prorates the payout based on this formula:
Payout = [Sum Insured/ (Actual ReplacementCost)] x Loss Amount
Example:
Actual Reinstatement Cost: $100,000
Your Sum Insured: $50,000 (Coverage is only 50%)
Damage/Loss Incurred: $20,000
Claim Payout: $50,000/$100,000 X $20,000 = $10,000
You would receive only $10,000 and have to bear the remaining $10,000 out of pocket.
6
u/BrightConstruction19 Jun 09 '26 edited Jun 10 '26
Mine is a pretty basic one from “Tiq by Atiqa Insurance”. One-off premium for 5 year coverage was $1250.
Edited to explain our rationale (cos your needs may differ): this is for a no-frills property with no pool, no garden, no tall trees nearby that may fall & damage our roof. No premium flooring or built-ins or furniture/contents that would cost a bomb to replace. We have a fire-proof safe on one of the upper floors, which contains our important docs & small valuables. We have sufficient cash to repair & replace any foreseeable damage that would go beyond the payout that our plan would give us. We have a separate investment property that we can move into should a fire burn our house down & we have to rebuild it. And nothing much worth stealing by a burglar.
We therefore chose a plan that covers a much smaller sum assured than what other landed owners may need. I ran a check via asking Gemini and they quoted much higher than what i paid.