Your favourite furniture and home services retailer just got its own home insurance, and it’s already the talk of the town.
IKEA, in collaboration with Etiqa Insurance, has launched a home and personal accident Insurance plan called HEMSÄKER at $59 a year. Its competitive pricing along with favourable USPs, HEMSÄKER provides protection for you, your family as well as your belongings. It covers a range of housing types — HDB flats, private apartments, condominiums or landed houses.
Like most other insurance providers, HEMSÄKER lets owners, tenants and landlords insure their residential property. You have to be a Singapore citizen, permanent resident of Singapore or a foreigner with a valid work pass, student pass, dependant’s pass or long-term visit pass in order to apply.
Why do you need home insurance?
Home insurance, essentially, helps you protect risks against perils such as fire, theft, flood, explosions, and more, by cutting down the amount you pay out of your own pocket, in case of any unforeseen incidents.
You can get home insurance if you are the owner of a house, a landlord (renting out your house) or a tenant of a home.
For those living in HDB flats, HDB Fire Insurance is mandatory as it covers the building structure, fittings and fixtures of your home. This helps relieve the financial burden of repair work in the event of a fire. A home insurance plan (on top of the HDB Fire Insurance) will help to protect the contents of your home and provide coverage that is more comprehensive.
What does IKEA’s home insurance cover?
Here’s an overview of the coverage IKEA’s home insurance HEMSÄKER provides.
|Benefits||Maximum Benefit Limit|
|Theft, Burglary & Robbery At Home||$5,000|
|Personal Legal Liability||$500,000|
|Accident At Home (Eligible for home occupants up to the age of 70)||$50,000|
Source: Policy Wording
1. Renovation: Up to $50,000
This will cover for the loss or damage to the renovation caused by any of the insured perils.
2. Home contents: Up to $50,000
Covers the cost of repairing or replacing contents in your home, including valuable items you might have — such as jewellery, furniture, appliances, laptops, clothes, money and more.
3. Theft, burglary and robbery at home: Up to $5,000
You will be paid for the loss or damage due to burglary, theft or robbery.
4. Personal legal liability: Up to $500,000
Provides coverage for bodily injury and property damage to others in your home that is caused by you or your family.
5. Accident at home (eligible for up to age 70): Up to $50,000
Reimburses the medical costs incurred in an accident at your home, or provides compensation in the case of a disability or death.
Should you get IKEA’s home insurance plan?
There are a handful of insurance providers that offer home insurance that suit the different types of needs. You can compare home insurance policies based on factors such as premium, building coverage, maximum household contents cover, personal liability or provider.
Ultimately, choosing the right insurance plan depends on two main factors — coverage and price. You can also read our guide to figure out what home insurance you require.
How much coverage do you require?
Having sufficient coverage is an important consideration when it comes to purchasing a home insurance plan. Is the maximum benefit limit of the home insurance sufficient to cover for you and your family?
For example, if you have valuable items stored in your home, such as jewellery, cash, electronic gadgets, and expensive furniture, you might deem the $50,000 maximum coverage provided by IKEA’s home insurance to be insufficient. A home insurance that provides higher home contents coverage could better suit your needs, such as MSIG Enhanced HomePlus (Superior/Ultimate Plan). There are also plans that allow you select and customise your Home Insurance benefits, such as the Tiq Home Insurance.
Home insurance can also come with additional benefits such as receiving emergency cash allowance and providing 24-hour emergency home assistance. There are also add-ons that insurance companies can offer such as coverage for the accidental death of pets, personal papers, bicycles, replacement locks and more.
What is the annual premium?
The IKEA home insurance plan comes at an affordable price point of $59 a year. However, there are also home insurance plans that cost less than $59 a year. For example, Aviva Home Lite costs $52.97 a year.
Ultimately, you will have to balance between getting sufficient coverage and getting a lower price.
Additional perks and promotions
If you are an IKEA FAMILY member, you will receive 1000 IKEA FAMILY points worth $10, in the instance that you have an insurance contract for 365 days and no claims are made under your policy within the year. These points can be redeemed at any IKEA store.
For all other home insurance providers, you should keep a look out for ongoing promotions and discounts being offered. This can also help lower the premiums that you pay. For example, from now till 31 March 2020, you can get $5 PayNow when you apply for any Home Insurance on the SingSaver website, or get $8 PayNow when you purchase an MSIG Home Insurance plan or AXA SmartHome plan on SingSaver.
The global retailer has always been known for its range of cost-effective, functional and aesthetic home furnishings. In Singapore, we have 2 IKEA stores, one at Alexandra and the other one at Tampines. With the launch of their own home insurance, IKEA aims to offer comprehensive protection at affordable prices.
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By Ching Sue Mae
A flat white, an adventure-filled travel and a good workout is her fuel. Sue Mae enjoys sharing knowledge on personal finance while chasing the dream of financial independence.