A fire can happen anytime at home.
There are many reasons from negligence to electrical overload.
It could be a fire that started from our neighbours’ house and spread to our home.
In 2018, a total of 2,411 fire incidents occurred in residential premises (private and public).
Having fire insurance is crucial to protect us from bearing unnecessary cost arising from an unexpected event.
What is a fire insurance and is it the same as Home Protection Scheme?
Home Protection Scheme protects you from losing your home in the event of death, terminal illness or total permanent disability.
Fire insurance protects you from losses or damages resulting from fire, mainly, the structural integrity of the building.
Who can buy a fire insurance policy?
A fire insurance policy can be bought by anyone who is a legal owner of a residential landed property or an apartment.
Is fire insurance compulsory?
Fire insurance is not compulsory.
Who is responsible or manages the fire insurance cover for the various properties?
HDB apartments
HDB is responsible for providing cover for fire damage to common areas. For individual homes, the owners are responsible.
Private apartments
Management Corporation is responsible for providing cover for fire damage to common areas and also to insure the entire property.
Landed property and private apartments without strata title
Landed property owners and apartment owners without strata title are able to exercise their choice if they wish to purchase fire insurance for their property.
So is it recommended that I buy a fire insurance?
Yes! It is recommend that everyone purchase a fire insurance. For one, it is very affordable (See table below). And it protects you from losses up to $106,200.
From 16 August 2019 to 15 August 2024, the 5-year premiums (including 7% GST) are as follows:
| Flat Type | 5-Year Premium (Including 7% GST) | Sum Insured |
|---|---|---|
| 1-room | $1.62 | $29,000 |
| 2-room/ 2-room Flexi | $2.71 | $48,700 |
| 3-room | $4.87 | $60,400 |
| 4-room/ S1 | $5.94 | $82,000 |
| 5-room/ S2/ 3-Generation | $7.13 | $97,300 |
| Executive/ Multi-Generation | $8.10 | $106,200 |
| Studio Apartment (Type A/ B) | $2.71 | $48,700 |
(Source: HDB)
However, if the property is using a bank/HDB loan , the bank/HDB will require you to have a fire insurance policy. This policy is commonly referred to as the Mortgagee Interest Policy (MIP). This is to protect the interest of the bank from any financial crisis arising from the fire damage. Your home is an asset to banks/ financial institutes until the mortgages are paid.
Is the content of my home covered?
Most fire insurance policies don’t cover what’s inside the house, for example, furnitures, renovation and personal items. A more comprehensive policy called home insurance is needed to cover the losses for the things in the house.
Engage an agent who serves, not sells
ANDIK IMRAN | BSc Business
CEA Reg No: R061801F
andikimran@realestatedad.sg
9450 8732
PropNex Realty Pte Ltd
