Consumers are reminded that in household contents insurance with public liability cover, policyholders are expected to take reasonable care and maintenance of their property to prevent or minimise loss, damage and accidents resulting in injury or death to the public.

The Consumer Council drove home this message today upon the release of the findings of its survey on 26 household contents insurance plans provided by 14 insurance companies.

The survey showed variances in the level and payment of premium. In the case of a flat less than 500 square feet, the premium could vary from $400 to $1,284 each year, depending on the coverage and sum insured.

Coverage details

In general, a comprehensive insurance package of this type should cover, among other items, loss or damage of household contents such as furniture and decorations, electrical appliances and kitchen utensils, clothing and personal valuables, as well as liability to the public.

However, the fixtures and fittings that come with a newly completed residential unit such as flooring, kitchen cabinets and gas water heater, are generally excluded, except if improvements have been made by the tenant or landlord after the premises were occupied.

The maximum coverage for household contents varied from $300,000 to $1.5 million per year, or $5,000 to $150,000 per article, and for valuables within a home, from $3,000 to $20,000 per article.

The council said careful consideration should be given to the excess per claim in an insurance policy which could be relatively high for damage or loss caused by water damage, landslides and subsidence.

Third-party liability

Also included in the cover are personal accidents due to a fire or burglary at home, and personal possessions such as loss of cash due to theft, and unauthorised use of credit cards. However, theft by a domestic helper is not covered.

All the 26 insurance plans surveyed provided third-party liability cover for the owner or occupier. The maximum cover ranged from $1 to $10 million per year. Some of the plans extend the owner's liability cover to the common areas, provided that the policyholder is the owner of the insured property.