Everything you need to know about HDB fire insurance (renewal, cost, differences with home insurance)

Fire accidents can be devastating, and in the first half of 2023, the Singapore Civil Defence Force (SCDF) responded to a staggering 967 fires, an increase from the 918 cases recorded during the same period in 2022.

Shockingly, more than half of these fires, accounting for 493 cases, occurred in homes, including both private and public housing residences. This alarming trend raises a crucial question for homeowners: Is your HDB home adequately protected by fire insurance?

Prevention is undoubtedly better than cure, making it essential for every homeowner to comprehend the nuances of HDB fire insurance and its vital role in safeguarding your home and finances.

Understanding your HDB fire insurance

HDB fire insurance is a mandatory safeguard for flat owners with HDB loans initiated on or after 1st September 1994. This insurance scheme was introduced to alleviate the financial burden faced by flat owners in the unfortunate event of a fire.

It primarily covers the expenses associated with restoring the internal structures, fixtures, and the areas within the flat that were initially constructed and provided by HDB.

However, it’s crucial to recognise the limitations of this insurance. While it provides invaluable protection for the core elements of your residence, it does not encompass the broader spectrum of your personal belongings. This means that cherished items such as furniture, custom renovations, and personal belongings fall outside the purview of HDB fire insurance.

Read more: 5 unexpected steps you’ll need to take when your house burns down

HDB fire insurance renewal and premium cost

Renewal and premium costs

To ensure continuous coverage, flat owners must renew their HDB fire insurance every five years. The premiums for the period between 16th August 2019 and 15th August 2024 vary based on flat type and are outlined below:

Flat type	5-year premium (including 8% GST)	Sum insured
1-room	S$1.63	S$29,000
2-room/2-room flexi	S$2.73	S$48,700
3-room	S$4.91	S$60,400
4-room/S1	S$5.99	S$82,000
5-room/S2/3-Generation	S$7.19	S$97,300
Executive/Multi-generation	S$8.18	S$106,200
Studio apartment (Type A/B)	S$2.73	S$48,700

Source: HDB

How to purchase or renew HDB fire insurance?

The process of purchasing or renewing HDB fire insurance is pretty straightforward.

Flat buyers or existing homeowners with expiring policies can renew or purchase their insurance through various channels, including:

Renewal/purchase options	How to obtain
FWD’s official website	Renew or purchase insurance online through FWD’s official website.
FWD’s office	Visit FWD’s office located at 6 Temasek Boulevard, #18-01 Suntec Tower Four, Singapore 038986 (by appointment only).
AXS kiosk	Access AXS kiosks to renew or purchase insurance conveniently.
Mailing a cheque	Mail a cheque made payable to ‘FWD Singapore Pte Ltd’ along with this completed form.
Email or phone	Contact FWD Singapore Pte Ltd via phone at 6820-8888 (Mondays to Fridays, 9 am – 10 pm & Saturdays, 9 am – 1 pm, excluding public holidays) or email at contact.sg@fwd.com for inquiries.

HDB fire insurance vs. home insurance

When considering insurance options for your HDB home, it’s imperative to understand the distinctions between HDB fire insurance and home insurance.

While HDB fire insurance serves as a fundamental safety net, offering coverage for essential structural components, many homeowners still opt for home insurance to ensure a more extensive and robust protection for their homes and belongings.

Understanding these distinctions is vital for homeowners aiming to secure comprehensive coverage.

Read more: Buying home insurance: 5 things you need to know

Here is a table comparing HDB fire insurance and home insurance:

Aspect	HDB fire insurance	Home insurance
Eligibility	Compulsory for all HDB flat owners.	Optional for all homeowners.
Structural elements	Covers essential structural elements provided by HDB	Provides comprehensive coverage for the entire structure of the home.
Renovations	Does not cover renovations or interior enhancements	Covers renovations, interior modifications, and fixtures installed by the owner.
Home furnishings	Excluded from the coverage	Protects furniture, appliances, electronics, and other home furnishings.
Personal items	Not included in the coverage	Safeguards personal belongings such as clothing, jewellery, and valuable items.
Alternative accommodation	Not applicable	Provides financial assistance for temporary accommodation if your home becomes uninhabitable due to an insured event.
Personal accidents	No coverage for personal accidents	Offers coverage for personal accidents, including medical expenses and payouts in the event of disability or death.
Personal liabilities	No coverage for personal liabilities	Protects against legal liabilities if you are held responsible for accidents or injuries occurring within your home.
Cost	Relatively affordable	More expensive than HDB fire insurance.

Choosing the right home insurance plan

Selecting an appropriate home insurance plan is a pivotal decision for homeowners, ensuring that your valuable assets and living space are safeguarded against unforeseen circumstances.

Home insurance plans are not one-size-fits-all; they vary in types, offering distinct levels of coverage tailored to different needs and preferences.

There are two categories of home insurance that provide coverage for fires:

Insured peril plan

The Insured peril home Insurance plan is designed to offer protection against specific events or mishaps that could potentially damage your home.

This plan typically covers incidents like fires, floods, thefts, and other specified perils. By focusing on these particular risks, it provides targeted coverage, ensuring that you are financially protected in the face of these events.

For homeowners concerned about specific, common risks such as fires or thefts, the Insured peril plan can be a suitable and cost-effective choice.

All risks plan

On the other hand, the All risks home insurance plan provides a more comprehensive and extensive coverage option.

While it comes at a higher premium, this plan offers a broader safety net, protecting you against a wide array of situations.

Unlike the limited scope of insured peril plans, All risks policies encompass a multitude of scenarios, ranging from accidental damages to various natural calamities and unforeseen incidents. This broader protection ensures that you are covered in diverse situations, providing you with peace of mind and financial security even in unexpected circumstances.

Considerations for buying home insurance

Customising your home insurance plan is essential. Here are some factors to consider when choosing your plan:

Risk assessment

Evaluate the specific risks that are prevalent in your area and align them with the coverage provided by each plan. Assess the likelihood of occurrences like floods, fires, or thefts in your neighbourhood.

Budget and affordability

Consider your budget and financial capabilities. While the All risks plan offers extensive coverage, ensure that the premium fits comfortably within your budget without causing financial strain.

Lifestyle and valuables

Reflect on your lifestyle, the value of your belongings, and the overall contents of your home. If you possess valuable items, antiques, or high-end electronics, a more comprehensive plan might be necessary to adequately protect these assets.

Policy customisation

Some insurance providers offer customisation options, allowing you to add specific riders or endorsements to tailor the policy according to your unique requirements. Explore these options to personalise your coverage effectively.

List of insurers and their home insurance plans

Several insurers offer Home insurance plans with varying coverage options. Understanding the sum assured and additional benefits is imperative when selecting the right insurer.

Among the providers are FWD, NTUC Income, Singlife, AIG, and Etiqa, each offering different plans to cater to homeowners’ diverse needs.

Wrapping up

While fire accidents might not be an everyday occurrence, their impact can be financially devastating.

Investing in comprehensive home insurance, even with the added expense, is a prudent decision. Safeguarding your home, belongings, and financial stability against unforeseen events like fires is an investment in peace of mind.

Remember, preparation today can prevent immense financial shocks tomorrow. So, take the necessary steps, customise your coverage, and embrace the safety and security that a well-rounded insurance policy provides.