What is Home Insurance?

A lot of finance bloggers have covered life / term / hospital / investment-linked / travel insurance policies, but I didn’t find much information on home insurance so I thought today I’ll dedicate an article to this boring but important topic.

Home insurance policies are just about as exciting as watching paint dry, but they’re an important concept to grasp for all homeowners. A home insurance policy will cover the physical structure of your home as well as your personal contents within the four walls. To be more accurate, some agents distinguish between fire insurance and home insurance, so here’s a quick run-down of the differences:

Fire insurance Home insurance
Status Mandatory Optional
Premiums As low as a few dollars for a 5-year plan (eg. $5.50 for a 4-room HDB for 5 years of coverage) Ranges from $40 – $400
What’s covered Only covers damage …