Essential home insurance

New flat, fresh reno, IKEA haul done. But what happens if a fire breaks out or your ceiling starts leaking? That’s where home insurance comes in — and trust us, it’s not just for the super kiasu.

The 3 types of home insurance you should know:

1. HDB Fire Insurance:
   • Compulsory if you took an HDB loan
   • Covers the structure of the flat (walls, floor, doors)
   • Costs as low as $1.50–$7.50 per year
   • Doesn’t cover your furniture, appliances, or renovation
2. Home contents insurance:
   • Covers belongings like sofa, TV, fridge, and even renovations
   • Also protects against theft, fire, and water damage
   • Premiums range from $60–$500/year depending on coverage
3. Mortgage Insurance (e.g. Home Protection Scheme):
• If you own an HDB flat and are paying for it through your CPF OA (Ordinary Account), you are required to apply for the Home Protection Scheme (HPS) mortgage insurance. If you are paying for your loan in cash, you can still opt for HPS, or any other mortgage insurance.
• Pays off your loan if something happens to you (i.e. terminal illness, total permanent disability, death). Take note that HPS does not cover critical illness.

Why it’s worth it:

Imagine spending $50k on renovation, only to lose it all to a burst pipe or electrical fire. Insurance gives peace of mind and is surprisingly affordable. Plus, some policies even cover temporary accommodation if your place becomes unlivable.

Pro tip: Always read the fine print. Not all policies cover floods or personal liability. Make sure your plan fits your housing situation.