Fire, Home Content and Mortgage Insurance
When a customer took up a home loan from a bank, he will be entitled to first year free fire insurance. For this free fire insurance, what does it cover? Generally, it only covers the structure of the property.This means that if your property structure is severely damaged (non liveable condition) then you are able to claim up to the current valuation of the property.The claim rate for this kind of insurance is extremely low as Singapore is a very safe country with no natural disaster or terror attack that will eventually destroy the entire structure. Take note that some fire insurance exclude natural disaster claim. Some banks are being more generous. Besides the fire insurance, they also provide home content insurance for their customers. Home content insurance will pay for the damage or loss of customers' possessions located within the house. Usually the coverage for home content insurance is from $5,000 to $10,000 Mortgage insurance covers the life of the insured. Sho