As a homeowner in Singapore, it's important to understand the different types of insurance policies available for HDB flats to ensure that you are adequately protected in case of any unforeseen circumstances. In this article, we'll explain the various types of insurance policies available for HDB flats in Singapore and what they cover.
1. Fire Insurance
Fire insurance is compulsory for all HDB homeowners and is purchased through the Housing and Development Board (HDB). The policy provides coverage against damage caused by fire, lightning, explosions, and other perils such as aircraft, impact by vehicles, and bursting or overflowing of water tanks.
The coverage amount is based on the value of the flat, which is determined by HDB. For example, for a four-room HDB flat, the coverage amount is $31,000 for fire damage and $2,000 for damage caused by water leakage. The premium is relatively affordable, with prices starting at around $1.50 per month.
2. Home Insurance
While fire insurance provides basic coverage for HDB flats, it doesn't protect against other common perils such as theft, floods, or accidental damage. Home insurance provides added protection for your home and belongings beyond what fire insurance covers.
Some common coverage options that come with home insurance policies include protection against fire, lightning, water damage, theft, and accidental damage. Additionally, some policies may provide coverage for alternative accommodation if your home becomes uninhabitable due to damage or if you're unable to stay in it due to a claim.
When choosing a home insurance policy, it's important to compare policies from different insurers to ensure you're getting the coverage you need at a competitive price.
3. Mortgage Insurance
Mortgage insurance, also known as Mortgage Reducing Term Assurance (MRTA), is a type of insurance policy that protects your family and your HDB flat in case you're unable to repay your mortgage due to death, terminal illness, or total permanent disability.
With a mortgage insurance policy, the outstanding balance of your mortgage will be paid off in the event of your death or if you're diagnosed with a terminal illness or total permanent disability. This can help alleviate the financial burden on your family during an already difficult time.
It's important to note that while mortgage insurance is not compulsory, it's highly recommended for HDB homeowners to consider this type of insurance policy to protect their investment.
In conclusion, as a homeowner in Singapore, it's important to have a comprehensive understanding of the different types of insurance policies available for HDB flats. By knowing what each policy covers, you can ensure that you're adequately protected and have peace of mind knowing that you and your family are covered in case of any unforeseen circumstances.
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