Wednesday, November 30, 2022

All About Insurtech: Do I Need Insurance if I Rent a Place?

Home prices in Singapore rose to record levels in the third quarter of 2022, shooting up by 3.8% after rising by 3.5% in the previous three months. With the outlook for 2023 not looking any sweeter due to looming issues such as higher mortgage rates, inflation, and a potential economic slowdown, many in Singapore are turning to renting a property instead of purchasing their own. According to reports by the Urban Redevelopment Authority, rentals of landed properties increased by 10.9% in the third quarter of 2022, compared to a small 3.2% increase in the previous quarter. On the other hand, rentals of non-landed properties also increased by 8.3%, an uptick when compared to the 7.1% increase in the previous quarter.

The sharp increase in home rentals shows a growing trend among residents in Singapore, with a growing preference against purchasing a property. In becoming new tenants, there are common misconceptions in terms of home insurance and whether the landlord’s coverage extends to them. If you are planning on becoming a tenant, here are the reasons why you should still invest in your own home contents insurance plan

  1. Your landlord’s insurance plans do not cover you
    • If an accident occurs on the premises of your rental, your landlord’s insurance plan will not extend to you and your possessions. Take a house fire for example—it can consume all of your belongings ranging from your laptop, clothing, important documents, and luxury goods. Without a personal home insurance plan to cover yourself, you will have to replace everything that you have lost out of your own savings. Covering yourself with a unique home insurance plan will save you all that money in the event of an unfortunate accident. 
  1. Accidental Damage to Property 
    • Accidents happen from time to time. Damage can happen simply to negligence, such as leaving the stove on or dropping something heavy and damaging the floor. Purchasing a home insurance plan ensures that the repair costs are covered. Additionally, if the residence is damaged, the plan can provide you with an allowance for emergency accommodation while repairs are underway. Benefits can include 24-hour home maintenance services, electrical services, and locksmith services among others. While still being accountable to your landlord for the damage, you can have the peace of mind that expenditure due to repairs will be covered. 
  1. Accidents and Personal Injury
    • Personal accident policies within home insurance plans can cover family personal accidents, with some even giving worldwide coverage. Personal accident insurance that comes with home insurance plans can provide cover for you and your loved ones, and supply Worldwide Personal Liability against any legal liability for accidental property damage or loss or accidental death of or bodily injury caused by negligence.

Property prices are continuously on the rise, and it is not surprising to see people shifting focus to renting instead of owning property. When it comes to insurance, many tenants might be under the impression that they are covered by their landlords, or that accidents won’t happen to them. Knowing whether you are covered or not can make a huge difference in the event of a housing accident, and can either make or break your checkbooks after everything is said and done.

Opting to purchase a home contents insurance plan such as the HL Assurance HomeProtect360 is safe, as it provides the peace of mind of knowing that you will be covered in the event of potential accidents. 

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