If you rent a house or apartment in Singapore and think that your landlord is financially responsible when there is a fire, theft, or other catastrophe—think again!
The Insurance Information Institute warns that while your landlord may have insurance to protect the building you are living in, your landlord’s policy won’t replace your personal possessions or pay for your additional living expenses in the event that your home is unliveable and/or requires repairs.
What does Renter’s Insurance cover?
If your belongings are stolen, damaged or destroyed by fire, storms, smoke, vandalism or other covered causes, renter’s insurance will ensure you’re reimbursed for the cost of replacing your personal possessions.
What if I am responsible for accidental damage to my landlord’s property?
Renter’s Insurance also includes Tenant’s Liability coverage, which is a component of Third-Party Liability insurance. This is your protection in case you damage your landlord’s property (e.g.: built-in cabinets, light and water fixtures, and floor tiles). It also protects you if someone is injured on your property (e.g.: someone slips on wet tiles and breaks their arm, you’re covered in the event they decide to sue you). The benefit amount is independent of the value of your personal belongings, and typical levels are $500,000, $1 million, and $2 million. We know this sounds a bit technical, but your Expat Insurance advisor will be able to explain how this relates to your individual circumstances!
How much insurance do I need?
When deciding how much insurance to buy, you need to know the value of all your personal possessions – this includes furniture, jewellery, clothing, electronics, sporting goods, appliances, kitchen utensils, and even towels and bedding. The easiest way to figure this out is to create a home inventory, which is a detailed list of all your personal possessions and their estimated value.
It covers your belongings when you travel.
A renter’s policy will also insure your belongings while off premises, which means your belongings are covered while you are traveling, or if you leave them in your car. For example, if your laptop is stolen from your car or if your luggage is stolen while on vacation, you can file a claim and receive payment for the value of your lost possessions.
It may cover additional living expenses.
Renter’s insurance will also pay for the loss of use of your home, meaning you can receive payment to stay in a hotel or other place if your apartment is damaged by a fire, storm or another covered event. Check with your policy to find out how long it will cover additional living expenses, and if it caps the amount the company will pay.
If you live in Singapore and need help deciding which coverage is best for you, contact the Expat Insurance team today for a complimentary consultation (because who knows what can happen tomorrow!).
