Home insurance vs. HDB Fire insurance: What are the differences?

This article was last updated on 29 February 2024.

What is fire insurance? What does it cover?

Have you ever wondered what to do in case of a fire? Your first instinct would probably be to get everyone out to safety. (If you have pets, please don’t forget them too!) Our instinct tells us to save lives during a fire but what does our instinct tell us before the fire happens? Do we ever think of being prepared for it or do we leave it to chance?

For most of us, the real problem starts after the dust settles. The mandatory HDB Fire insurance, which is compulsory for flat owners with outstanding HDB loans, won’t cover everything that burns except for the building structure. So when the fire comes, it may not just burn all the décor and material things we own, but it may also burn a hole in our pocket and savings. Now, we don’t want that, do we? So how do we fire-proof our things and savings?

What does home insurance cover in Singapore?

You may be asking, “Is home insurance the same as the HDB Fire insurance?” The answer is no. Apart from HDB Fire insurance, home insurance also covers fire and various home-related mishaps. However, home insurance tends to be more comprehensive than HDB Fire insurance, as you’ll see in the sections below.

Home insurance covers more than just the building structure

The HDB Fire insurance primarily covers structural damage. On the other hand, home insurance offers broader coverage for your belongings, built-in fixtures, furnishings, valuables, and more.

A simple way to understand is that anything you would take with you if you moved house should be covered by home insurance. Installations, modifications, or improvements you had made to turn an empty flat into a liveable home are also covered.

Household contents in your home which home insurance may cover (non-exhaustive list):

• Furniture (e.g. sofa, dining table and chair, coffee table, etc)
• Domestic appliances (e.g. oven, microwave, aircon, etc)
• Electronic devices (e.g. TV, refrigerator, laptop, handphone, etc)
• Clothing
• Locks
• Security systems
• Money belonging to you or your family and kept within your home

So if you’re thinking of putting a ban on candles at home, you don’t have to! There’s a better way to keep your peace of mind.

Home insurance may protect both home owners and renters

Home coverage policies don’t just protect the interests of homeowners; they also extend to those who rent or are renting out a property. Depending on the insurer, home insurance policies usually provide liability cover to both tenants and landlords, in the event of accidental injuries or property damage.

If you’re a tenant, FWD Home insurance covers the personal belongings you bring into your rented home. Basically, everything yours – excluding the four walls. Tenant insurance also offers liability protection and covers the costs of replacing or repairing the damage you may cause to your landlord’s property.

On the flip side, if you’re a landlord, we’ll cover the loss of rental income while the leased unit is uninhabitable due to the very unlucky event of an explosion or natural disaster, for example. As the unit is undergoing repairs, we’ll cover the lost rent as well as the costs to restore structural damage and property destruction.

Home insurance covers renovations

Renovation projects usually come with hefty price tags. Renovating a 3-room BTO flat¹ could cost upwards of S$41,600, for example. Given all the time and money you’ve poured into customising your home to your liking, it might be upsetting if it gets damaged by fire, or flooding.

FWD Home insurance will cover your renovation, from S$20,000 onwards to S$100,000, depending on your sum insured. This coverage ensures that any loss or damage to your renovations, including expenses for debris removal, is taken care of.

You also wouldn’t have to worry about the costs of repairs and replacements, whether it’s repainting walls, reinstalling floor tiles or other necessary fixes. It helps lighten the financial burden of restoring your home, allowing you to focus on moving forward.

Home insurance covers fires and other home-related incidents

Protecting your home goes beyond just fire safety. While fires often make the news, there are many other unexpected risks that can damage your home. From theft and flooding to water pipe leakage, there’s a lot that could potentially happen. Home insurance plans, such as FWD Home insurance, covers you for not only fire damage, but also the incidents mentioned above and much more.

Home insurance covers your pets too

If you’re a cat or dog owner, you may consider your furry friend a member of the family. It may then be reassuring to know that home insurance plans cover not only you and your family but also your “furkids”, ensuring that they are also protected if something were to happen while they are at home.

For example, FWD Home insurance offers complimentary coverage for pets, offering payout for the theft of your pet cat or dog if it happened while they were at home. Furthermore, if your pet needs temporary accommodation at a pet hotel or medical attention following a home-related mishap, FWD Home insurance will reimburse the necessary costs.

Should you buy home insurance on top of fire insurance?

Here’s a quick table of comparison between fire insurance and home insurance.

If you’re considering whether to purchase home insurance, it’s worth reflecting on the value you place on your belongings. Imagine the total cost of everything in your home right now; it may not be feasible to afford replacing it all in the event of loss. Comparing this potential expense to the cost of comprehensive home insurance, you could save a significant amount. Well, there are sentimental things that cannot be replaced, but the burden of paying for the replaceable things will be your most valuable benefit.

With the right home insurance plan to complement your HDB Fire insurance, you’ll always stay financially protected. Get covered with FWD Home insurance – our plans start as low as S$36 a year, and can be customised to suit your needs, exactly how you want it. Whether it is for an HDB flat or a private home, it pays to be insured. Get a home insurance quote now and be covered in minutes.