Answer
Fire Insurance vs Home Insurance Cost in Singapore
There are three types of property insurance in Singapore — and most people confuse them. Here's what's mandatory, what's optional, and what each one actually costs.
Answer: Fire insurance is mandatory for HDB mortgage holders and costs about $5/year via the HDB Fire Insurance Scheme. Home contents insurance is optional and costs $100–$300/year — it covers your stuff (furniture, renovations, electronics). Mortgage insurance (MRTA or decreasing term) protects your loan if you die or become disabled — compulsory for HDB loans via CPF Home Protection Scheme, optional but strongly recommended for bank loans.
The Three Types of Property Insurance
| Type | What It Covers | Mandatory? | Typical Cost |
|---|---|---|---|
| Fire insurance | Flat structure (walls, floors, fixtures) | Yes (HDB mortgage) | ~$5/yr |
| Home contents | Furniture, reno, electronics, personal items | No | $100–$300/yr |
| Mortgage insurance | Outstanding loan (death/TPD) | Yes (HDB loan via HPS) | $200–$600/yr |
Fire insurance via HDB Fire Insurance Scheme (FWD). Mortgage insurance via CPF Home Protection Scheme for HDB loans.
Fire Insurance — The Mandatory One
If you have any mortgage on an HDB flat, fire insurance is compulsory. Most HDB owners are covered by the HDB Fire Insurance Scheme (HPS), underwritten by FWD Insurance. It's dirt cheap and auto-enrolled.
| Flat Type | Coverage Amount | Annual Premium | 5-Year Premium |
|---|---|---|---|
| 1–2 room | $77,000 | $1.5 | $7.5 |
| 3-room | $77,000 | $1.5 | $7.5 |
| 4-room | $97,000 | $3.85 | $19.25 |
| 5-room | $113,000 | $4.85 | $24.25 |
| Executive / EA | $139,000 | $6.2 | $31 |
Premiums are based on HDB Fire Insurance Scheme rates. Coverage is for rebuilding cost, not market value. Paid via GIRO or one-time 5-year payment.
Home Contents Insurance — The One You Probably Need
Fire insurance covers the structure. Home contents insurance covers everything inside — your renovation, furniture, appliances, clothing, valuables. If a fire destroys your kitchen renovation, fire insurance won't pay for it. Home contents insurance will.
| Coverage Level | Sum Insured | Annual Premium | Best For |
|---|---|---|---|
| Basic | $20,000–$30,000 | $80–$120 | Minimal reno, rented furniture |
| Standard | $50,000–$70,000 | $150–$200 | Typical HDB with $30,000–$50,000 reno |
| Comprehensive | $80,000–$150,000 | $200–$350 | Extensive reno, high-value items |
| Condo / Landed | $100,000–$300,000 | $250–$500 | Larger units, premium finishes |
Premiums vary by provider. Add-ons like personal liability, alternative accommodation, and worldwide personal belongings cost extra.
What Home Contents Insurance Typically Covers
| Covered | Usually Not Covered |
|---|---|
| Renovations (built-in wardrobes, kitchen cabinets) | Normal wear and tear |
| Furniture and appliances | Pest damage (termites) |
| Electronics (TV, laptop, phone) | Intentional damage |
| Clothing and personal items | Cash and securities |
| Temporary accommodation (if home uninhabitable) | Vehicles |
| Personal liability (injury to visitors) | Pre-existing damage |
Mortgage Insurance — MRTA vs Decreasing Term
Mortgage insurance pays off your outstanding home loan if you die or become totally and permanently disabled (TPD). For HDB loans, this is handled by the CPF Home Protection Scheme (compulsory). For bank loans, you need to arrange your own coverage.
| Feature | Bank MRTA | Decreasing Term Insurance | CPF Home Protection (HPS) |
|---|---|---|---|
| For | Bank loan holders | Bank loan holders | HDB loan holders |
| Mandatory? | No (but bank may require) | No | Yes |
| Typical cost | $300–$800/yr | $150–$500/yr | Paid from CPF OA |
| Portable? | No (tied to the bank) | Yes (keep when refinancing) | HDB loan only |
| Payout | Directly to bank | To beneficiary (flexible) | Directly to HDB |
| Savings vs MRTA | — | 20–50% cheaper | — |
Decreasing term insurance is usually the better deal for bank loan holders. Compare quotes from at least 3 insurers before committing to a bank's MRTA.
What Banks Actually Require
| Insurance Type | HDB Loan | Bank Loan (HDB) | Bank Loan (Condo) |
|---|---|---|---|
| Fire insurance | Required (HPS auto) | Required | Required (by bank) |
| Mortgage insurance | Required (CPF HPS) | Recommended, not always required | Recommended, not always required |
| Home contents | Optional | Optional | Optional |
For condo and landed, fire insurance is usually arranged by the bank as part of the mortgage. The MCST's building insurance covers the structure; you may need to top up for interior fixtures.
Planning your property purchase budget?
Insurance is one of many costs. See the full picture — stamp duty, legal fees, down payment, and monthly mortgage.
FAQ
Is fire insurance mandatory for HDB flats?
Yes. If you have an HDB mortgage (HDB loan or bank loan), fire insurance is compulsory. HDB owners are automatically enrolled in the HDB Fire Insurance Scheme (HPS) run by FWD Insurance. It costs about $5 per year for a standard flat. You can opt out of HPS only if you buy your own fire insurance policy that meets HDB’s requirements.
What does fire insurance cover?
Fire insurance covers the rebuilding cost of the flat structure — walls, floors, ceilings, fixtures — against fire and related perils (lightning, explosion). It does not cover your furniture, electronics, renovations, or personal belongings. That’s what home contents insurance is for.
How much does home contents insurance cost in Singapore?
Home contents insurance typically costs $100–$300 per year depending on coverage amount ($20,000–$100,000), flat size, and add-ons like personal liability, temporary accommodation, and renovation coverage. Popular providers include NTUC Income, AXA, MSIG, and Etiqa.
Is home contents insurance mandatory?
No. Home contents insurance is entirely optional. Neither HDB nor banks require it. However, it is strongly recommended — a kitchen fire could destroy $30,000–$50,000 worth of renovations, furniture, and electronics that fire insurance will not cover.
What is mortgage insurance and do I need it?
Mortgage insurance pays off your outstanding home loan if you die or become totally permanently disabled. HDB buyers with an HDB loan are automatically covered under the Home Protection Scheme (HPS/CPF). Bank loan buyers need to arrange their own mortgage insurance — either the bank’s MRTA (Mortgage Reducing Term Assurance) or a separate decreasing term plan from an insurer.
Is MRTA or a decreasing term insurance plan better?
A standalone decreasing term plan from an insurer (like Aviva, Singlife, or NTUC Income) is usually 20–50% cheaper than the bank’s MRTA for the same coverage. You can also port the policy if you refinance. MRTA is convenient but locked to the bank. Always compare quotes before committing.
Related
Last updated Feb 2026. HDB Fire Insurance Scheme rates via FWD Insurance. Home contents premiums are estimates based on market rates. This is informational, not financial advice.