Different Types of Home Insurance

As  more and more BTO are ready for key collection, I have decided to share more on Home Insurance today.

There are Four different type of Home Insurance.

1. Home Protection Scheme (deducted automatically from your CPF Ordinary Account)

Definition:  A mortgage-reducing insurance that protects members and their families against losing their HDB flat in the event of death, terminal illness or total permanent disability. HPS insures members up to age 65 or until the housing loans are paid up, whichever is earlier (extracted from CPF website)

Benefit: In the event if any of the house owner passed on or suffers from terminal illness or total permanent disability, the Board would settle the outstanding housing loan up to the insured sum in the event of death or permanent incapacity.

There are two options for this: (A) or (B)


2. Decreasing Term Assurance/Mortgage Insurance (Works similar to HPS)

This is offered by Insurance Companies and is payable by Cash instead of CPF Ordinary Account. Some people prefer using cash for payment as CPF Ordinary Account has a decent interest rate.

Instead of Decreasing Term Assurance, there are homeowners who prefer to buy a Term Insurance (Mortgage Insurance) to cover the Housing Loan period. One advantage to using Term Insurance is that you can include Critical Illness coverage as well.

There are two options for this: (A) or (B)

Using Term policy.jpg

3. HDB Fire Insurance (By Etiqa, payable at HDB itself while key collection)

Definition: Basic fire insurance cover for your flat. It is mandatory to purchase the HDB Fire Insurance policy when you take up an HDB housing loan.

Benefit: Covers damages caused by fire to the internal building structure, fixtures and fittings provided by HDB and its approved developer.

4. Home Content Insurance (Important! Often neglected.)

Most Singaporeans spend a lot on their renovations and their furniture. Most are not aware of  Home Content Insurance or what it covers.

Benefit: Covers Home Content & Renovations, Alternative Accommodation or Loss of Rent if your home is uninhabitable, Cost to replace deteriorated frozen food in the deep freezer of your refrigerator of less than 5 years old due to failure of the freezer, Pays your monthly service and conservancy charges in the event your home is uninhabitable following loss or damage, Monetary loss suffered due to fraud or dishonesty of your domestic servants living in your home and many more.

I will share more about Home Content Insurance in my next post.

Do feel free to WhatsApp me at 81029976 for a quote for Home Content Insurance or if you have any queries on my post today.

Hopefully this post will be beneficial. If you enjoy reading my post, do drop me a WhatsApp message about anything that you would like to know more of and do not be shy to ask for a complimentary policy review.

Have a lovely week! ❤


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