Think About The Following Before Choosing Your Home Fire Insurance Policy
Fire is something that can occur at any time. Fire can be cause due to incorrect wiring of the house, arson and natural factors. Eight out of ten people, who die from fire, die because of the fire at houses. It is found that after every seventy seven seconds, a residential fire is taking place and the main reason is unattended cooking. In Singapore house fires are very common. And that is why you need to insure against the fire.
Any home insurance coverage will provide coverage against the fire. But there are some important things that you have to keep in mind before choosing your home fire insurance Singapore https://www.hlas.com.sg/PersonalInsurance/HomeContentsInsurance.aspx.
If fire takes place at your house, your insurance policy should pay you for the repairs or rebuild the house. It is not only the house but the insurance policy should pay you for your belongings that were lost because of the fire. Some insurance companies will pay you cash while others pay the replacement cost. The cash value and the replacement cost will never be the same. Say that your computer was destroyed because of fire. You had to spend $2000 to buy it before three years. If the insurance policy pays you cash, they will pay you $2000 even if the price of that computer is low at present. If the company pays for the replacement cost, then what ever the amount needed to replace the computer will be paid.
Many Singaporeans prefer the replacement cost policy but if you are having expensive items like jewelry, artworks and other antique items, it is better to go for the cash policy so that you can guaranty you will get back the money you spent for them.
You can also maintain a file that includes details of all your belongings and their values. You can take photos of them or even video them. You must always have two copies, one with you and the other one in a safe place. If you have only one copy and if it gets destroyed due to fire, there is no way of assigning the correct values to the belongings that were lost and your insurance company may not pay you the correct amount if there is no proof. The other important thing to consider when choosing your fire insurance policy is the deductible and the monthly insurance premium. Deductible is like the base payment that you will have to pay. It is going to be a very large sum of money. If the deductible is very large then the monthly premium is most likely to be lower. You have to choose a policy according to what you want.