Home Fire Insurance — How Necessary Is It and How to Choose Well

Many sign fire insurance with their mortgage without reading what it covers — yet it protects your biggest asset. Understanding it means paying well for the right cover.

How necessary

With a mortgage, almost every bank requires it for the term, since the home is their collateral. Even cash buyers benefit — premiums are tiny versus fire losses.

What it covers

Item	Basic cover
Building	Covered
Fire, lightning, explosion	Covered
Some natural perils	Often capped
Contents	Add-on needed

Choosing well

You can pick your own insurer, not just the bank's offer. Compare premiums and cover, ensure the sum insured matches rebuild cost, and add contents cover for valuables.

References

• Office of Insurance Commission (OIC)