What You Need to Know: Insuring Your New HDB Flat

Did you know that you have to purchase a basic HDB Fire Insurance for your new house before collecting the keys to your new flat? We delve into what the basic plan covers and how you can give your home the adequate coverage it needs.

Updated on June 12, 2017 10:06 am

Valerie Tan

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The day the appointment letter finally arrives in your letterbox is one filled with excitement. Open up the envelope and you’ll find instructions on where to collect the keys, and plus where to purchase your home insurance.

Most people read extensively when it comes to getting loans from either HDB or from financial institutions, and their renovation loans can also be painstakingly researched. However, few take the time to consider the importance of home insurance for their new house. What exactly do we need before opening the door to our love nest?

1. HDB Fire Insurance Scheme

It's vital to obtain an HDB Fire Insurance from an HDB appointed agent if you intend to apply for an HDB loan. Under this scheme, the fire insurance provides only the basic coverage for the building structures and fixtures.

Etiqa Insurance Berhad is currently HDB’s appointed insurer and they have a counter at the HDB Hub. The fire insurance policy lasts five years and is due for renewal every five years. The premium for the fire insurance is less than $10 and a certificate of fire insurance will be issued upon payment. This is needed before you head towards the HDB sales office counter at level one of HDB Hub to collect the keys to your new house.

Next, how about the coverage for your renovation and the possessions in your house?

2. Enhanced Home Insurance

There are several home protection plans that are offered by different insurance companies to address the needs of homeowners. Let’s take a look at what most of them commonly cover:

Renovation and Personal Contents. This covers loss and damages to the renovation, your furniture and furnishings, and also your personal belongings brought upon by unfortunate events like fire and break-ins.

Accommodation Expenses. This simply means that the costs (up to a certain amount) for an alternative accommodation will be covered in the event that your insured home is made uninhabitable.

Personal Accident and Worldwide Liability. Homeowners and their family members are insured for personal accident and the family’s legal liability to third party anywhere in Singapore or overseas. This gives peace of mind whether you are at home or away.

Bonus Covers. These cover removal of debris, conservancy charges, replacement of locks and keys, emergency cash allowance, and even cover items like deterioration of food in the refrigerator, loss or damage to contents or belongings while they are being temporarily relocated (and some even cover the domestic helper’s belongings!), and loss of your beloved pet.

There are many comprehensive home insurance policies offered by various institutions designed for your unique needs and to keep your home safe and sound. Some examples: MSIG, Aviva, POSB, and NTUC.. Be sure to shop around and ask for quotes before deciding on which best suits your family’s needs.

According to Mary Nickel, author of All About Homeowners Insurance, here are the questions you should ask an insurance agent when requesting for an insurance quote:

1. Liability protection
2. Coverage for your personal belongings
3. Coverage for structure of your home
4. Ask your agent if their policy covers additional living expenses in case your house is temporarily unsuitable for living
5. What type of disasters does the policy cover?
6. How can you save money with this specific policy?
7. How often will you have to renew your homeowners insurance?
8. What is the difference between nonrewal and cancellation?
9. How you can get the right home insurance rate?


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