Choices are never easy. That’s why, we do the math, so you don’t have to. Compare This, a SingSaver series, is here to help make decisions a little easier for you.
Home insurance plans appeal to different homeowners due to their unique perks, benefits and coverage. In a bid to help you find the most suitable plan, here’s a three-way comparison between AXA SmartHome, TIQ and FWD.
Buying a home insurance plan is one of the most important purchases you could ever make. They are there to be your financial armour in case a disastrous event wrecks havoc within or around your home.
But this brings us to the question: what makes a good home insurance plan great? And how do we know if it’ll truly give us the financial protection we need to get our home back to how it once was?
Here we’ll compare the top three home insurance products in the market to find out which plan will work best for you based on your individual priorities.
AXA SmartHome vs TIQ vs FWD
|Home insurance plans||Key benefits|
|AXA||– Offers coverage in the millions, ideal for expensive properties|
– 24-hour emergency assistance
– Extensive coverage for common household issues
– 10% no claims discount after 3-year claim-free period
– Worldwide personal liability coverage of up to S$500,000 with the option to increase coverage to S$2,000,000
|TIQ||– Offers up to S$1,000,000 in renovation coverage|
– Up to S$150,000 coverage for home contents
– Provides emergency cash allowance of up to S$5,000 within 24 hours
– 24-hour emergency home assistance for plans 3 years and up
– Worldwide personal liability coverage of up to S$1,000,000
|FWD||– Separate claim limit for building, content and renovations per event|
– No excess charge in the event of fire or burst pipes
– Landlord-friendly as it covers default on rent due to an insured event or loss of rent if tenant is not able to stay in your property
– Emergency home assistance with up to S$100 for each assistance service up to 4 times in a policy year
What these home insurance plans have in common
This crop of home insurance plans undoubtedly shares its promise to financially protect your home contents, renovations and building against liability. On top of that, they all have personal legal liability (in case the next door neighbour decides to sue you for damages to their property) and value-added protection in the form of a home assistance benefit.
Moreover, all three plans also include coverage for those who don’t own the home i.e. tenants.
How these home insurance plans differ
While there’s some similarity, the three plans are also inherently different. This is hardly surprising given that different homeowners have different property types, budgets and priorities to consider carefully before signing up for a plan.
#1 Home contents coverage limit
|Up to S$500,000||Up to S$150,000||Up to S$100,000|
Home contents is one of the key things that comes to mind when buying home insurance. It’s practically the reason why you’re in the market for one. Interestingly, home contents coverage is where the plans differ greatly, with AXA coming out on top with a limit of $500,000 and FWD with the lowest at $100,000. However, this does not necessarily mean that you should only go for the plan that offers the highest coverage.
TIQ’s coverage, while taking the second highest spot, is worthwhile considering its low yearly premiums. For those with highly valuable and luxurious belongings and who will like a higher home content coverage, AXA should be your top pick.
#2 Building coverage limit
|Up to S$3,000,000||Up to S$2,000,000||Up to S$1,000,000|
Insuring your building is an essential component in any home insurance plan — particularly for landed property owners who do not have the Home Protection Scheme (HPS) or Management Corporation Strata Title (MCST) to fall back on. The ‘building’ in building coverage refers to the actual structure, fixtures and fittings of your property. Out of the three, AXA SmartHome offers the highest building coverage limit of up to $3 million, ideal for high-value properties that require more money to restore it back to its original state.
When it comes to home insurance, it’s important to insure your home with the amount it takes to fully restore your home. Anything more than that is considered over-insurance and anything less is under-insurance.
#3 Coverage against landlord’s liabilities
|Covers property owner’s liability (such as accidental death of tenant) and loss of rent||Does not offer||Covers loss of rent due to an insured event (such as fire and theft) and tenancy disputes|
If you’re signing up for home insurance as a landlord, this should be high up your list of priorities for the best home insurance plan. Simply put, being a landlord exposes you to added liabilities concerning your tenant. Having rent protection within your home insurance plan could be a lifesaver, especially when taking in rent makes up a significant portion of your income. Luckily, AXA and FWD provide that perk that could potentially save you thousands of dollars (depending on your property’s rental rate).
#4 Personal liability coverage
|Up to S$500,000|
Option to increase coverage to S$2,000,000
|Up to S$1,000,000||Up to S$500,000|
Another point of difference to take into consideration here is the plan’s personal liability coverage. For the uninitiated, this could come into play in the event that the fire you started spread to your neighbour’s house and your neighbour decides to sue you for the damages caused. The liability coverage will then be able to aid you in terms of legal costs. TIQ easily comes out on top here with double the coverage limit of both AXA and FWD.
#5 No claim discount
|10% no claim discount on the fourth policy year should there be no claim made for 3 consecutive years||Not available||Not available|
If you’re on the lookout for a home insurance plan that rewards you for good behaviour, you might be surprised to know that only AXA offers this benefit in the form of a 10% discount — but only if you’ve remained claim-free for 3 consecutive years.
Conclusion: Which home insurance plan stands out from the rest?
The old adage ‘one size fits all’ does not apply to home insurance. It all boils down to your specific preferences as a homeowner. For landlords, you may find FWD’s rent protector coverage useful in order to tide you over should you experience rent loss.
On the other hand, true-blue HDB homeowners may find TIQ’s flexible yet highly affordable coverage as the most bang for their buck, and therefore the clear winner of this three-way comparison.
For homeowners with particularly high-value belongings or someone who just want an overall comprehensive yet affordable Home Insurance, AXA SmartHome’s generous coverage would sufficiently cover the cost of your home’s reinstatement (plus the cost of replacing your belongings to boot).
Protected up to specified limits by SDIC.
Note: This is only product information provided. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying an insurance product that are not suitable for you may impact your ability to finance your future healthcare needs.
If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.
Read these next:
Home Insurance Promotions And Discounts To Protect Your Home
Home Insurance: Why Is It Important And How Do You Compare The Best Plans?
FWD Home Insurance (Review): Comprehensive Cover At Low Premiums
What Exactly Are Home Assistance Plans, And How They Differ From Home Insurance
Why Fire Insurance And Tiq Home Insurance Is The Perfect Pairing Against Household Disasters
By Marissa Saini
Your friendly neighbourhood cat enthusiast who enjoys not being broke. Spend less, save more is the name of the game. Firm believer that being financially savvy is not about the destination, but the friends you make along the way.