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Warning! Check your car insurance. Does it cover flood damage?
Beware. Not all major Singapore car insurers cover you for flood damage to your vehicle.
A report by independent researchers, ValueChampion, found that not all insurers automatically cover this as part of their standard insurance package, despite the fact that we live in a tropical climate where floods can often occur.
The data analysts also found that paying expensive premiums doesn’t necessarily ensure you are covered against flood damage. Budget Direct Insurance, for instance, is one of the cheapest insurers in Singapore for experienced drivers and its comprehensive car insurance policy automatically includes cover for flood damage.
Take a look at this table from ValueChampion showing which Singapore insurers provide car insurance cover for flood damage.
| Insurer | Flood Damage Coverage? |
|---|---|
| BudgetDirect | Yes |
| Sompo | Yes |
| AIG | Yes |
| Aviva | Yes |
| NTUC Income | Yes |
| DirectAsia | Yes |
| HL Assurance | Yes |
| Etiqa | Yes |
| Tokio Marine | Yes |
| China Taiping | Yes |
| MSIG | Yes |
| AXA | Varies by plan |
| FWD | No |
| Liberty | No |
Is it necessary to have car insurance for flood damage?
In Singapore we have monsoon season twice a year and we’re well accustomed to heavy rainfall. A study, carried out by the National University of Singapore, reported that the average number of floods (flash and non-flash) stands at 4.2 per year. Up until 2017, however, there have already been a total of 13 flash floods in Singapore. According to the Public Utilities Board (PUB) there are currently 55 flooding hotspots in Singapore.
The PUB describes ‘flood prone’ areas as those that are not low-lying, but have still experienced flash floods. If you drive through or park your car in these relatively high–risk areas, it may pay off to make sure your car insurance covers you for flood damage.
The big take away from this? Always check the details of your insurance policy. Features you may have thought were part of your standard comprehensive insurance package may not be included.
Here is what the Budget Direct Insurance website has to say about cover for flood damage with our Comprehensive Policy:
If your car is damaged by fallen trees, accidental flooding, storms or any other natural disasters, we will either arrange for your car to be repaired, replaced or pay you up to its market value.
Spend a few minutes reading your policy documents to make sure you’re getting the cover you think you are. In Singapore, it’s best to have cover for flood damage. Don’t get caught out.
Check out our safety tips when driving through flooded areas in Singapore.
Budget Direct Insurance gives you great cover for Car, Motorcycle and Travel. Saving you money without cutting corners on your cover.