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[MoreMore Insights] Home Insurance

Updated: Jun 27, 2022



Owning a home may be your biggest investment, if you're looking to purchase a home, you've probably thought about getting home insurance to get you financial protection, should your home be damaged by unforeseen events. So what can be claimed under home insurance? Let's have a look together.


What is Home Insurance?


Home insurance is a form of property insurance that covers losses and damages to an individual's residence, along with furnishings and other assets in the home.


Home insurance covers you financially if your home is damaged or destroyed by 'insured events.' Insured events vary depending on the insurance company, but they are types of events that you will be covered for under your policy.




Sum Insured Cover


Sum-insured home insurance covers property damage costs up to an amount decided by you. But you can risk being underinsured with sum-insured coverage.


Do I Need Home Insurance?


Unexpected incidents can happen at any time in your home. Having home insurance can protect you from having to pay a large lump sum to repair damages to your property, which is why home insurance is important. If you're looking to purchase a home, or if you're a homeowner that has applied for a mortgage, your lender will require you to purchase home insurance before the property settlement. So, although home insurance isn’t necessarily a requirement, it definitely plays a crucial role in protecting what may be your greatest asset.



What’s Covered by Home Insurance?


As we've mentioned, home insurance covers damage to your home caused by insured events. These events are usually:


• Fire

• Storm (like cyclones or hail storms)

• Lightning

• Earthquake or tsunami

• Explosion

• Escape of liquid (like water from a burst pipe or leaking washing machine)

• Impact (like from a fallen tree or power pole)

• Damage by an animal

• Vandalism

• Riot

• Legal liability (usually for injury and death to others in connection to your property)

• Flood (however this is often an optional extra).


In addition to these standard events, many insurers offer optional covers for extra events at an additional cost to you. It is important to note that home insurance does not protect your personal belongings. You will need to buy an extra insurance cover called personal valuable cover.


What is Not Covered by Home Insurance?


Some common exclusions include:

• Wear and tear/ gradual deterioration

• Maintenance costs

• Intentional loss or damage

• Loss or damage caused by rodents or vermin (like termites or rats).



How is Premium Calculated?


The way home insurance is calculated is complicated. Some of the many factors impacting the price of your home insurance premium are:

• The amount you insure your property for

• The excess fee

• The location of your home

• The level of cover you choose with your insurer

• The construction materials and other characteristics of your home

• Any optional extras you have added to your policy

• The age of your property

• How the home is used


It can be difficult to find the best coverage that fits all your needs, especially if your property value is really high, or if your housing condition is outside insurer's policy. As most of the insurance companies would refuse to insure your home. You can get in touch with our professional insurance brokers at MoreMore Finance, to ensure your home insurance policy meets all your unique needs.

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