For many people, your property is one of the biggest assets that you hold. There are 3 options for protecting your property which is a basic fire insurance, houseowner and householder insurance. Learn the difference between the house protection choices and which option is best for you.

Property Insurance Options

There are 3 options for protecting your residential property.

  • Fire insurance
  • Houseowner insurance
  • Householder insurance

Fire Policy

  • Provides coverage for loss or damage by fire, lightning or gas explosion on the building only.

Houseowner Policy

  • Provides coverage in basic fire policy.
  • Provides additional loss/damage by aircraft, vehicles, animals, bursting of overflowing water tanks/pipes, theft, wind storms, flood, and earthquake on the building only.
  • Excludes landslide, riot, strike and malicious damage.
  • Extension of coverage can be made to cover loss of rent and liability to 3rd parties for accidents in your house.

Householder Policy

  • Provides coverage specific to cover household content and personal effects.
  • Provides coverage for injury to life.
  • Coverage only takes effect when there is evidence of forced and violent entry or exit.
  • Coverage based on compensation for reinstatement with a brand new item or replacement value after factoring in depreciation.
  • Every item to be insured under the policy must be declared to get full compensation and suggested to keep receipt of items.

 

What house or fire insurance should I get?

Should I get a basic fire insurance or a houseowner or householder insurance? If the insurance policy cost is your key concern, a basic fire insurance should suffice. If you need coverage for flooding, pipes bursting and other such coverage, consider getting a houseowner insurance. If you need coverage for your belongings, get a householder insurance. Do note as well that insurance will only pay up to certain limits so not all valuables may be covered in full so do check the coverage terms & conditions.

FAQ

Q: How much property fire insurance coverage is needed? Is it based on the market value of the property?

A: Amount of coverage is based on the cost to rebuild the building (which is not necessarily the same as the market value).

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