It all starts with condos review, then you find one that wins your heart, you sign the Option to Purchase and years later get a call that your unit is receiving Temporary Occupation permit so you can start renovation work and prepare to move it. The roller-coaster of choosing the right furniture and the grand housewarming runs so fast leaving you venerable to mistake, just like a majority of other new condo owners in Singapore.
It’s typical that any time we something new, a car, phone or appliance we “stress test” it to see if there is an issue with it. Well, it’s the same case with your new condo. You will want to test the swimming pool, bath tabs, ovens and any other appliance in it. During this process, your new property falls at high risk of perils, which you are yet to insure.
In case these accidents occur, they might leave your condo flooded more so if you stay on the ground floor. If there is significant flooding, you risk getting your furniture, electrical appliances and flooring damaged.
During this few months, a lot of repairs happens either from you or your new neighbors. During this renovation cases such as water pipes burst, accidental fire or breakage cases are at the highest. If you are in a new development most people tend to assume the place is burglary proof, so not security systems mind changing old locks to new ones. If these happen, then you risk losing a lot of valuables such as jewelry and their expensive items you possess.
Are condos insured by default?
Condo’s Management Corporation (MC) purchase insurance coverage for condominiums in common areas and buildings. This insurance is known as fire insurance, which also covers other perils besides fire including lighting, water pipes bursts, gas pipe explosion, smoke damage riots, etc.
It is, however, important to note that fire insurance only pays for reinstating damage to a home structure and its original fixture. This means that losses incurred on renovations, furniture, appliances and other content inside your home remain at risk.
To adequately cover your condominiums against perils, you, therefore, need to take home content insurance which covers items inside your homes. This, thus, complement the fire insurance. If you have spent $50,000 and $25,000 on furniture, you stand to incur an enormous loss in case these perils occur with only fire insurance. For costly items such as jewelry, you need to take more measures and cover them individually.
If you take your home content insurance, you have the responsibility of reviewing the policy regularly. Policies change over years, with a dollar value of items also changing drastically. If this happens and there is an occurrence of peril, your sum insured need to be up to date otherwise you risk not being compensated accordingly.
If you are moving to a new condo and plan to invest in furniture and renovation, then it’s wise to protect your home with sufficient insurance.