HDB Fire Insurance vs Home Insurance – What’s the Difference?

Your home is more than just a roof over your head—it’s where you keep the things that matter most, from your laptop and jewellery to that growing board game collection. And if you live in Singapore, chances are you’ve also invested quite a bit in renovations and furnishings to make it truly yours.

Now, here’s a question: what happens if an unexpected fire damages your flat? You might think you’re well protected because you once signed up for the compulsory HDB fire insurance when getting your flat.

But here’s the catch—HDB’s fire insurance only covers the original structure of your unit, not the renovations or personal belongings inside. To safeguard those, you’ll need a separate home insurance policy. Without it, recovering from a major incident could be a lot more expensive than you expect.

HDB fire insurance vs home insurance

1. What does (and doesn’t) HDB fire insurance cover?
2. Which types of insurance are compulsory?
3. What is home insurance and what does it cover?
4. Fire insurance vs home insurance — what’s the difference?
5. Where can you buy home insurance and how much does it cost?
6. How to choose a home insurance policy
7. Is home insurance necessary?

 

1. Wait, HDB fire insurance doesn’t cover fires?

If you live in an HDB flat and took out an HDB loan, you were required to buy compulsory HDB fire insurance. And yes, this policy does cover fires, but its scope is much narrower than most people realise.

The coverage is limited to the original structural elements of your flat, such as the walls, floors, ceilings, doors, and electrical wiring—as they were handed over when you first collected your keys.

What it doesn’t cover are your home contents (furniture, appliances, electronics, and personal belongings) or any renovations and upgrades you’ve added, like built-in wardrobes, new flooring, or customised kitchen fittings.

A simple rule of thumb: if it wasn’t there when you first got your flat, it’s probably not covered under HDB fire insurance.

So, in the event of a major fire, the policy will help restore your flat’s original structure. But you’ll still need to pay out of pocket to replace your belongings and reinstate any renovations.

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2. What type of home / fire insurance is compulsory?

When it comes to protecting your home, here’s the key difference: home insurance is optional, but fire insurance can be compulsory depending on your loan type and property.

HDB flats

• All HDB flat owners with an HDB loan are required to buy HDB’s appointed fire insurance policy (currently provided by FWD). This must be maintained for as long as the loan is outstanding.
• Premiums are very affordable, ranging from $1.99 for a 2-room flat to $6.68 for an executive unit. These rates are for 5-year premiums and include 9% GST.
• If you’re taking a bank loan instead, the bank will usually require you to have a Mortgagee Interest Policy (MIP). Unlike property fire insurance, which covers structural damage, an MIP mainly protects the bank’s financial interest in your home loan—the bank is the beneficiary of the payout.
• Once your HDB flat is fully paid off (loan-free or bought with cash), fire insurance is no longer compulsory.

Private property

• Similar to HDB, banks also require a Mortgagee Interest Policy if you’ve taken a loan to purchase your home.
• For condominiums, the MCST (Management Corporation Strata Title) typically arranges a fire insurance policy for the whole development. This covers the building’s structure and common areas, but not your personal renovations or belongings.
• For landed property that’s fully paid up, there’s no obligation to maintain fire insurance—but many owners still choose to for peace of mind.

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3. What is home insurance and what does it cover?

While compulsory HDB fire insurance protects the flat’s original structure, it leaves out a big part of what makes your home truly yours—your renovations, belongings, and the people living in it. That’s where home insurance comes in.

Home insurance is designed to supplement fire insurance. It not only covers structural damage from fire, but also protects against other common risks such as theft, burst pipes, or accidental damage. Importantly, the policyholder (you) is the beneficiary—not the bank.

Unlike fire insurance, which is limited to the building’s original structure, home insurance extends to your renovations, fixtures, contents, and in some cases, personal liability and living expenses.

Here are the common types of coverage offered by home insurance:

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4. Fire insurance vs home insurance in Singapore

 

5. Best home insurance plans in Singapore & how much they cost

The following quotations are for a basic 1-year plan. Some home insurance plans offer lower premiums if you sign up for a package of a number of years, say 3 or 5.

Where there is an option, we’ve picked the basic, standard or insured perils versions of these plans, with no add-ons, for 3-room HDB properties unless otherwise noted. Many of these plans are customisable based on your property type, size, and desired coverage, and premiums will vary accordingly.

Home insurance plan	Annual premium (before discount)	Building / renovation coverage	Contents coverage
FWD Home Insurance – HDB 3 Room	$61.16	$60,400	$20,000
MSIG HomeEasy – Silver (3-room or smaller HDB – Owner Occupied / Landlord)	$73.03	$70,000 (renovation coverage)	$30,000
AIG Homes Essential – 3 Room	$75.76	$42,000	Up to $150,000
Tiq Home Insurance – HDB 3 Room	$76.53	$83,300	$35,000
Singlife Home Lite	$81.21	$75,000	$35,000
Income Enhanced Home Insurance – HDB 3 Room & below	From $97.10	Up to $100,000	From $50,000

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6. How to choose a home insurance policy

When it comes to home insurance, the “cheapest” or the “most comprehensive” plan isn’t automatically the right choice. The best fit depends on your home, lifestyle, and budget. Here are some key factors to guide your decision:

Renovation costs

Home insurance covers the cost of reinstating renovations and fixtures you’ve added. As a guide, think about how much you spent on renovations. If your HDB flat was minimally renovated, you may not need a high coverage limit. On the other hand, if you’ve invested heavily in customised fittings or high-end finishes, you’ll want more protection.

If you didn’t renovate at all and accepted your unit in move-in condition, consider asking insurers or peers for a ballpark coverage recommendation.

Value of home contents

Add up the replacement value of your appliances, furniture, electronics, and valuables to estimate how much coverage you need. Needs vary widely—some households get by with $10,000 of contents coverage, while others may need $50,000 or more to cover designer furniture, smart home systems, or jewellery.

Lifestyle needs

Different households prioritise different things. For example, pet owners might want add-ons for veterinary cover, while families with elderly members may prefer plans that include personal accident or hospital allowance benefits.

Some insurers offer customisable plans with riders (optional add-ons) for pets, personal liability, or even domestic helpers.

Budget vs benefits

Once you know your priorities, compare plans within your budget. Look closely at payout limits for the areas most important to you, and check how they stack up against other options in the market.

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7. How necessary is home insurance in Singapore?

Home insurance isn’t compulsory in Singapore. But while compulsory HDB fire insurance only covers the structural elements of your flat, home insurance helps protect the things that make your space liveable and personal.

If something unfortunate like a major fire happens, you’d lose far more than just the walls and wiring. Renovations, furniture, appliances, and belongings can add up to 5 or even 6 figures in value, and these are only covered under a home insurance policy.

How necessary home insurance is depends on your situation:

If you’re an owner-occupier (you own and live in the property)

Home insurance is highly recommended. You’ll want protection for your renovations, fixtures, appliances, and valuables, plus liability coverage if an accident in your home affects others.

If you’re a tenant

Home insurance is optional, but worth considering if you furnished the property yourself.

It can also cover alternative accommodation costs if your rental becomes uninhabitable, and may protect you against claims from your landlord if you damage fittings that belong to them.

If you’re a landlord

Home insurance can help safeguard your investment, especially if you paid for renovations, fittings (e.g. air conditioning, built-in wardrobes), or appliances.

You’ll also benefit from liability protection if tenants make claims against you for accidents within the property.

Rule of thumb:

The more you’ve invested in renovations, belongings, or rental properties, the greater your incentive to buy home insurance.

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This article was first drafted with the help of AI and later reviewed and refined by the author.

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