When We Fail to Plan, We Plan to Fail

Tuesday, Apr 17 2018 06:16 PM

You know about home insurance — taking out a policy to protect valuable personal belongings stored at home. But are you familiar with the fine print?

Here’s a summary of policies from five home insurers:

- By dollar value, valuables cannot exceed 25-35%, depending on the policy, of the contents assured. Example: if you insure $20K worth of contents, valuables cannot account for more than $5K-7K.

- The maximum value of each article is capped at $500-7,000

- Cash is covered for up to $1,000 only, while title deeds are covered for up to $1,500

The following CANNOT be covered:

- Bonds, cheques, deeds, documents, promissory notes, securities

- Electronic data and business-related items

- Safes, even if the policy claims to protect the home security system

What does this mean?

There are serious limitations with storing your valuables at home. Insurers quibble at moderate- or high-value possessions; even low-value items are subject to severe limits on the proportion they can comprise of the value of the contents to be assured. Some valuable possessions cannot be insured at all.

It gets worse. We know that in the unfortunate case of loss insurers typically do not award the full sum assured! Couple this with the fact that valuables (such as jewellery) cannot be insured for 100% of their value, and you have the situation that you may recover only 10% of the value of the valuables lost.

Appraisals or a surveyors’ opinions are usually required for high-value items; this results in full disclosure of private information to financial institutions. Eventually, the owner of the policy will be subject to the Automatic Exchange of Financial Account Information (AEOI) regulations, where your personal financial information is disclosed to other countries for tax-computation purposes.

In all these cases, private vaults cover home insurance shortfalls. Private vaults are ideal for offsite storage of high-value and irreplaceable items, they come with foolproof security and 24-hour protection, and your private information remains private.

 

Facts were true at the time of reporting. Data presented is summarised from the policy wordings of five reputable home insurers in Singapore. Policies ranged from low-premium ones to high-premium ones. Luxurious home insurance was excluded.

To find out more about Vault@268 and its services, visit vault268.com.sg