Are you looking for information on HDB fire insurance?
You’re in the right place.
This guide will walk you through everything you need to know, from what it covers to what you need to do next.
I’ll cover key areas such as what HDB fire insurance is (and isn’t), the premiums involved, its limitations, and more.
Read on to get all the details.
Fires Do Happen
Imagine you’ve invested a small fortune in your HDB flat, and then, one day, a massive fire strikes and destroys everything. What do you do?
You might think it won’t happen to you because you’re always careful. You make sure to:
- Turn off all electrical appliances when not in use
- Pay attention when cooking and avoid distractions
- Keep your home free of fire hazards like stacks of newspapers or flammable items
- Repair or dispose of faulty wiring and appliances
But, before you feel too secure, consider this: even if you follow all the safety precautions, fires can still happen – and they might not even be your fault.
A fire could start from your neighbours – to the left, right, above, or below you. It’s not just about your own actions.
Take, for example, a recent incident where a personal mobility device (PMD) exploded, sparking a fire that destroyed the owner’s flat and damaged two neighbouring units.
Now, what if you were one of those neighbours? What would you do then?
SIDE NOTE
When was the last time you conducted thorough financial planning or reviewed your finances?
In this day and age in Singapore, doing so will absolutely improve the quality of life for you and your loved ones.
What Is the HDB Fire Insurance?
HDB fire insurance is designed to protect flat owners from the substantial costs of repairs in the event of a fire.
What does it cover?
This insurance specifically covers the internal structure, fittings, and fixtures that were built by HDB, as well as the surrounding areas that were provided by them. Essentially, it covers everything that was in place before you received your keys and made any changes to your home.
Is it compulsory?
Yes, it’s compulsory if you have an outstanding HDB mortgage loan.
What Is It Not?
As a homeowner, you’ve likely heard of the following, which are quite different from HDB fire insurance — and it’s important to understand these distinctions.
Home Protection Scheme (HPS)
The Home Protection Scheme is designed to pay off part or all of your home loan if you pass away or suffer a total and permanent disability. Essentially, it’s a form of mortgage-reducing insurance.
Private Mortgage Insurance
Private mortgage insurance, offered by insurance companies, is an upgrade to the HPS. However, many homeowners opt for level term insurance instead, as it can often be more cost-effective. Both private mortgage insurance and level term insurance provide lump sum payouts in the event of death, total and permanent disability, or critical illness.
Home Contents Insurance
Also known as “home insurance,” this type of coverage complements HDB fire insurance by covering areas that it doesn’t.
We’ll dive into the details of what’s included in home contents insurance shortly.
DID YOU KNOW?
According to a survey conducted by MoneySense, about 3 out of 10 Singapore residents aged 30 to 59 had not started planning for their future financial needs.
This isn't surprising because personal finance can seem complicated and daunting. But really, there are only a few things that you should focus on.
Learn how to significantly improve your personal finances with the 7-step "wedding cake" strategy today.
The Premiums for HDB Fire Insurance
The current appointed provider for HDB fire insurance is Etiqa Insurance Pte. Ltd.
Below are the current premiums for HDB fire insurance:
| Flat Type | 5-Year Premium (including 9% GST) | Sum Insured |
|---|---|---|
| 1-room/ Community Care Apartment | $1.11 | $37,900 |
| 2-room/ 2-room Flexi/ Studio Apartment | $1.99 | $57,000 |
| 3-room | $3.27 | $83,300 |
| 4-room/ S1 | $4.59 | $117,000 |
| 5-room/ S2/ 3-Generation | $5.43 | $144,800 |
| Executive/ Multi-Generation | $6.68 | $176,700 |
As you can see, you only need to pay the premiums, which cover a 5-year period for your specific type of flat, and then simply renew when the time comes.
To purchase or renew, you can visit Etiqa’s website. The entire process can be completed online.
4 Limitations of HDB Fire Insurance
In insurance, premiums generally reflect the scope of coverage. If premiums are low, it usually means the coverage is more limited. Here are four key limitations of HDB fire insurance:
1) It only covers the home
Which is more important — the home or the homeowner?
To put it another way: is the cost of the home more significant than the impact of losing the homeowner?
Personally, I believe the homeowner is more crucial. If the home is lost, it’s a financial setback. But if the homeowner is no longer around, it’s not just about the loss of property. There’s the added burden of unpaid loans, as well as the disruption of other essential aspects of life, such as children’s education, retirement plans, and daily expenses.
HDB fire insurance focuses solely on the home, leaving the homeowner’s wellbeing unprotected. That’s where the Home Protection Scheme comes in. It’s vital to consider not just protecting your home, but also ensuring that you can cover your mortgage in the event of an unexpected tragedy, through HPS, mortgage insurance, or term insurance.
2) Covers only fire
While fire is a major concern, it’s not the only potential threat.
Singapore might not face massive natural disasters, but other common property damages can still occur. For instance, what if a theft or burglary happens? HDB fire insurance won’t cover those scenarios.
3) Does not cover damages you cause
Nobody intends to cause harm, but accidents do happen. If you’re the unfortunate one who causes a fire, you could be held liable for damages to your neighbours or their property. HDB fire insurance won’t protect you in this case. You’ll need separate liability coverage for that.
4) Does not cover what’s inside
What truly makes your house a “home”? For most Singaporeans, it’s not just the walls and roof — it’s the design, the furniture, and the appliances that make it comfortable. After spending time, effort, and money on renovations and home decor, your home becomes a reflection of you.
Unfortunately, HDB fire insurance doesn’t cover the contents inside your home. If something were to happen, the cost of replacing your belongings could be significant.
What If I Want More Coverage?
Given the limitations of HDB fire insurance, you might be wondering how to get better protection. The answer is simple: home contents insurance. This type of insurance complements HDB fire insurance by covering what’s left out, giving you greater peace of mind.
It’s affordable, and with both policies in place, you can rest easy knowing your home — and everything in it — is protected.
