What Does the HDB Fire Insurance Scheme Cover and Is It Enough?

This post was originally posted on Planner Bee.

One fire is one too many. According to statistics from Singapore Civil Defence Force (SCDF), the number of fires in residential buildings increased by 3.7% in 2023. In particular, unattended cooking and electrical origin made up the top two causes for residential fires. Casualties and significant damage occur as a result so these incidents underscore the importance of being adequately prepared for and protected against such emergencies. In this article, we will look at what the HDB Fire Insurance scheme offers, and whether it is sufficient.

What is HDB fire insurance scheme?

The HDB fire insurance scheme is a mandatory plan that home owners must take up as long as there is an outstanding HDB loan. If you own a HDB flat, it is highly likely that your unit is covered by basic HDB fire insurance. It is renewable every five years, and is meant to alleviate the financial burden of restoring the flat after a fire. Let’s have a closer look at its coverage.

The HDB fire insurance scheme covers all structural damage, areas and fixtures built and provided by HDB. As mentioned previously, the plan is valid for five years. The premiums for the scheme are as follows, and they will remain the same until 15 August 2029:

Information obtained from https://www.hdb.gov.sg/residential/living-in-an-hdb-flat/fire-insurance

Note: S1 / S2 flat types refer to those at Pinnacle @ Duxton and they are categorised with 4- and 5-room flats respectively.

The current insurer for the scheme is Etiqa Insurance Pte Ltd. To check your HDB fire insurance scheme’s validity, you can visit HDB’s login panel My Flat Flat Details and Minimum Occupation Period (MOP) and you should be able to see your policy’s effective date and expiry date.

A closer look – is HDB fire insurance sufficient?

The comparison below shows the key differences between HDB fire insurance scheme and the general terms from most home insurance providers.

From the comparison above, we can see that while the HDB fire insurance scheme is affordable and covers costs for structural repairs including fixtures that were built and provided by HDB, it does not cover a few other key areas such as furniture, renovation costs and personal belongings.

For example, you will not be able to make claims for contents such as your laptop, mobile phones or bicycles that are inside your home at the time of the incident. It also does not cover personal liability, which refers to the event where we are held responsible for the death, injury or damage to a third party or their property.

In terms of the insured events, the HDB fire insurance scheme is rather limited, but home insurance may provide coverage for more perils such as theft and burglary (by forced entry), depending on the policy chosen.

In view of these, it begs the question of whether HDB fire insurance alone is sufficient to provide adequate protection. HDB does ‘strongly encourage’ homeowners to purchase home insurance to extend coverage to home contents or events that are not insured under its scheme.

Read more: Best Fire and Home Insurance Policies

Do I need home insurance?

Though strongly encouraged, home insurance is optional. Comprehensive home insurance evidently provides protection that goes beyond the basic coverage by HDB fire insurance scheme. If you are currently living in an older HDB flat, the decision to buy home insurance is favoured simply due to the fact that there is a higher risk of incidents, especially from wear and tear. Being properly and adequately insured will ensure that you are financially safeguarded against costs to begin again.

Read more: Home Insurance: What To Consider and How To Know Which To Choose

I am renting, do I need to purchase home insurance?

Again, this depends on your needs and budget. Even when renting, one will still have valuables or electronics at home. When unforeseen incidents arise, your landlord will be responsible for insuring the structure of the unit, but your personal belongings including furniture, clothing and electronic devices are not covered by your landlord’s insurance. As a tenant, it may be wise to get insured. Some policies also provide coverage for temporary accommodation and storage which you will need as you figure out the next steps.

What can I do to build a safer home?

Faulty electrical wiring, electrical appliances and overloading of electrical sockets made up the majority of fires caused by electrical origins, followed by Active Mobility Devices (AMD). Better practices will make these incidents wholly avoidable. Here are some tips for you:

Maintain electrical appliances

We are encouraged to use appliances with electrical plugs that carry the SAFETY mark, which affirms the safety of products imported into Singapore. If your household has Power-Assisted Bicycles (PAB) or a Personal Mobility Device (PMD), you should not leave the battery charging unattended overnight or for a long period of time. Maintaining electrical appliances is crucial to prevent mishaps and fires at home. Over time, appliances can wear out, leading to faulty wiring or overheating, both of which can start a fire. Regular checks and servicing can help you to identify potential issues early. You can learn more in this Ready Home Self Validation Checklist by SCDF.

Check your water pipes periodically

Leaks and burst pipes can cause serious water damage to flooring, walls and personal belongings. Even a small leak can escalate quickly, hence taking proactive steps to check the water fittings to ensure no leakage, and engaging a plumber to do repairs when necessary will help to minimise the risks. Some home insurance policies provide benefits such as covering for plumbing and other maintenance services for a fixed number of times per policy year. Learn what you can do as a homeowner to check and maintain your water pipes at home via this HDB guide.

For many Singaporeans, purchasing a HDB flat is a significant milestone. With it comes responsibilities to protect your home from unforeseen situations and incidents. If you need help to get started with safeguarding your home, the Planner Bee team is here for you. Email us at [email protected] today.

Read more: The Ultimate Guide to Home Insurance Coverage in Singapore