Mortgage Loan Insurance

 

Mortgage loan insurance takes care of unpaid home repayments, should any unforeseen event such as death or total and permanent disability happen to the homeowner.

Homeowners with Mortgage loan Insurance will not be burdened with mortgage repayments or face the possibility of losing their home.

 

An example using AIA Mortgage Reducing Term Assurance (MRTA):

A 27-year old servicing a mortgage loan of $400,000 at an interest rate of 3%, only needs to make a one-time premium payment of $5,528 to ensure that should anything happen to him, his remaining home repayments will be handled by the Insurance company.

 

For more information on MRTA Insurance please send me a email: mark.lim@aia.com.sg

Theft Insurance

 

General Scope of Cover of Theft Insurance:

- Theft involving entry to or exit from the premises by forcible and violent means

[Forcible – means with the use of force, Violent – means with notion of aggression]

 

Underwriting Considerations:

- Type of Good Insured

- Value of Good Insured

- Location where Good will be stored

- Types of security measures taken for the premises

 

Extensions to Theft Insurance:

1] Hold-Up/Robbery – Defined as Theft accompanied by assault or violence

2]  Full Theft Cover – Covers loss/damage by Theft without violent & forcible entry into the premises

[Extensions are additional benefits available to the Insured]

Fire Insurance

 

General Scope of Cover of Fire Insurance:

- Fire

- Lightning (with or without fire)

- Property damaged in the act of putting out the Fire (Proximate Cause)

 

Underwriting considerations:

- Construction of the Building, storage arrangements

- Geographic location

- Description and Occupation of property

- Loss history

- Sum to be Insured

General Cover of Packaged Property Insurance

 

Apart from insuring the physical household properties, there is also covers for contingencies related to your home.

 

1] Liability To the Public

- This indemnifies the Insured for sums which he/she is legally liable to pay as compensation, examples include:

- The Insured’s dog bites and injures his neighbour

- The Insured’s friend slips and falls while visiting

- The Insured’s child breaks an expensive vase of the neighbour

2] Personal Accident

- A lump sum is paid to the Insured in the event of Death or Total Permanent Disability due to Insured perils

3] Medical Expenses

- The Insured is indemnified if he/she is injured due to Insured perils

The Average Clause (Property Insurance)

 

In the case where a property is Under-Insured.

When the Average clause is in effect, the Insurer will not pay the full reinstatement cost, but will pro-rate the payment according to the Under-Insurance.

What is Excess? (Property Insurance)

 

“Excess” in Property Insurance represents the 1st part of the claim that must be paid by the Insured.

The purpose of the “excess” is not an attempt by Insurers not to pay claims, but rather to eliminate small claims, and keep premiums low.

“Excess” is usually kept to a small sum (ie. $200) that will not be a financial burden for the Insured

Types of Property Insurance

 

1] Buildings

- This policy covers only the structure, fixtures and fittings of the building, general cover includes:

- Fire

- Lightning

- Explosion

- Aircraft damage

- Bursting of water pipes

- Earthquake

- Vehicle impact damage, or other impacts such as a falling tree

- Landslide

- A notable buildings policy is the “Fire Insurance Scheme for HDB Apartments” which is compulsory for all HDB homeowners with a mortgage loan taken after 1st Sept 1994 

2] Contents

- This covers household contents of the building only

3] Buildings & Contents Combined

- Covers both Building & Contents in the Building

4] Valuable Articles

- This policy is designed to cover the Insured’s valuables such as:

- Antiques

- Paintings

- Jewellery

- Musical Instruments

- And any item with high monetary value

- This cover is usually limited to a percentage of the actual value of the item(s)