HDB flats tend to already come with fire insurance coverage. The insurance carriers used by the HDB are FWD Insurance (up to August 2024) and Etiqa. There is even an online portal where HDB residents can check the validity and status of their fire insurance policies. A five-year validity period is a typical feature of the insurance coverage from the aforementioned carriers.
When do you need to buy fire insurance in the BTO home process?
Fire insurance is mandatory if you have an HDB mortgage loan. Otherwise, you won’t be able to qualify for a loan. Also, the fire insurance policy should have already been in effect before you can take out a mortgage loan from the HDB and buy a BTO flat. For new BTO flat owners, you can either buy from any Singaporean insurance provider or renew your existing policy coverage, if you have one. And note that FWD Insurance has already stopped providing HDB fire insurance coverage on August 16, 2024.
Where do you get your fire insurance for your BTO flat?
There are actually several insurance vendors that can give you a good deal on fire protection coverage for your BTO flat. You can do a little bit of research, check them out online, and even get quotes from different carriers. The HDB, however, is set on Etiqa as its provider. The HDB also offers three routes for flat buyers and existing owners who want to either buy or renew their fire insurance policies. The agency suggests signing up via the website of Etiqa, visiting a kiosk of the AXS, or going directly to open a fire insurance account with Etiqa’s customer service office at One Raffles Quay. Contact details for Etiqa include WhatsApp/calls at +65 6887 8777 and email address at customer.service@etiqa.com.sg.
What are the benefits of getting fire insurance coverage for your BTO flat?
Generally, in the event of a fire, the fire insurance policy will cover both the repair and rebuilding costs of the HDB flat. It will also shoulder the replacement costs of your home fixtures and fittings–which you should itemize and declare when you sign up for and buy the policy.
Home insurance, on the other hand, offers a much broader coverage. The HDB recommends expanding to get home insurance on top of an existing fire insurance, but Singaporean law does not make home insurance compulsory. With home insurance, you can get coverage for, among many others, fire losses, theft, personal liability and accidental damages.
What are the factors to consider when getting fire insurance coverage for your BTO flat?
Unless you pay for an additional rider or an add-on, your basic fire insurance policy might not cover your temporary accommodation. You need to read the terms carefully and ask the carrier for specifics. Damage to the building structure from fire and lightning is usually covered. So are the related losses incurred during the fire. But if your home becomes inhabitable after a fire, that temporary accommodation you will be staying in while rebuilding is ongoing will not be covered by your policy. Home insurance, however, typically covers temporary accommodation costs during the post-fire repair and rebuilding period.
Another important thing to consider when choosing a fire insurance policy is the limited optional coverage options. Losses involving plate glass or payment for personal accidents for your domestic helpers, for example, will likely be offered as optional add-ons. But you will have limited choices, compared to simply opting for home insurance altogether and getting a bundled deal that includes a fire insurance policy. All in all, balance your priorities, and if you can afford additional protection beyond the basic fire insurance coverage, then you might as well go for it.