A HDB owner’s guide to insurance

Aviva September 23, 2015 0
A HDB owner’s guide to insurance

So you’ve collected the keys for your new HDB! After the daunting housing loan, next on the list should be the insurance for your expensive investment. We understand how difficult it is to differentiate the insurance that you need for your home so we came up with a simple chart of the various insurances that you should have.

Building Insurance Home Contents Insurance Mortgage Insurance
What does it cover? Your flat’s internal building structure, as well as fixtures and fittings provided by HDB such as electrical wiring and water pipes. Personal items in the house such as electronics, appliances, and paintings, as well as renovated items such as kitchen cabinets and fixtures. Pays out the outstanding housing loan so your family will not have to lose their home.
When does the coverage kicks in? Fire, bursting and overflowing of water pipes, standard explosion, sprinkler leakage, malicious damage, etc. Fire, flood, theft, bursting/ overflowing of water pipes or household apparatus, lightning, explosion, etc. Death, terminal illness, total & permanent disability, or upon diagnosis of critical illness of the policyholder(s).
Where can I get this? HDB’s Fire Insurance scheme. Private insurers such as Aviva. You can either get the Home Protection Scheme (HPS) from any HDB branch, or from private insurers such as Aviva.
How much would it cost? Negligible. Ranges from $0.30/year for a 1-room, to $1.50/year for an Executive/ Multi-Generation flat. Depends on the level of coverage you want. Aviva’s Home Insurance plans range from $53/year to $160.50/year. Dependent on your loan amount. For a 25-year loan of $300,000, Aviva’s MyProtector-Decreasing costs about $189/year*.
What do you need to take note of? Coverage is sold in 5-year blocks, so you only renew it every 5 years. There are claim limits so if you have an expensive million dollar painting in your house, you may not be able to claim its full value should it be damaged or stolen. Home Protection Scheme (HPS) will be offered to all who pay their monthly housing instalments via CPF savings but it’s not compulsory and you can apply for exemption if you already have private life insurance in place.

*Premium shown reflects that of a male policyholder, non-smoker, 30 (at age next birthday), who resides in Singapore and takes up a 25-year policy with a mortgage interest rate of 3% p.a.

Have you provided the right coverage for your home? Click here to get a quote for your home contents insurance!

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