In Singapore, your home is likely to be an important asset.
How should you protect your home?
Not only can you protect your home from major accidents such as fire, you can also protect its contents.
You can even cover your pet if something happens to your home.
Let’s explore the types of home insurances that you can consider to protect your home.
This article was written by a Financial Horse Contributor.
1. Home insurance for HDB
For HDB owners, there are two compulsory types of home insurance:
Home Protection Scheme (HPS) HDB Fire Insurance Scheme
The Home Protection Scheme (HPS) is a mortgage-reducing insurance that protects you and your loved ones from losing your Housing and Development Board (HDB) flat in the event of death, terminal illness, or total permanent disability. It insures members until they turn 65 years old, or until the housing loans are paid up, whichever is earlier.
In the unfortunate event of a claim, HPS will settle the outstanding housing loan, up to the sum insured, with HDB or the mortgagee directly.
The HDB Fire Insurance Scheme offers additional peace of mind from the cost of repair works in a fire.
The current appointed insurer for the HDB Fire Insurance Scheme is FWD Singapore Pte Ltd and the insurance is valid for a five-year period.
HDB fire insurance is compulsory for all flat owners who have an outstanding HDB loan. The insurance is valid for a five-year period and must be renewed once every five years.
Third-party insurance
In addition to HPS + HDB Fire Insurance Scheme, it is recommended to obtain extra home insurance for enhanced protection of your home contents.
For instance, AIA offers a plan for HDB home owners. The Enhanced Public Housing Contents Insurance (EPHCI) covers: