10 best home insurance plans in Singapore for HDB and private property (2023)

Your home is probably the most expensive thing you own right now. (Not to be presumptuous, but I'm assuming you don't have a $3 million supercar or yacht.) So it makes sense to protect it.

And in this day and age, rather than digging a moat around your abode and adding crocodiles, protecting your home means buying home insurance.

Here's a guide to home insurance and the best plans in Singapore, depending on the kind of property you live in.

1. Wait a minute, I already have HDB fire insurance…

If you took out an HDB loan to buy your flat, you would have been required to buy compulsory HDB fire insurance. We don't blame you for thinking you're already covered on the home insurance front.

But fire insurance is a different beast from home contents insurance.

HDB fire insurance is meant to cover the cost of repair works if your flat is damaged in a fire. But the cover only extends to internal structures, fixtures and areas built by the HDB.

It does not cover any furniture, renovations or personal belongings in the flat. That mezzanine loft you added in a renovation? Not covered. That crystal chandelier you installed to channel The Phantom of the Opera? Not covered.

Home insurance, on the other hand, offers much broader coverage than fire insurance. It protects not only your home itself (ie. the building) but also the contents inside it such as furniture, renovations and appliances. Depending on your policy, this can even include your laptop or jewellery.

You don't have to suffer from fire damage to make a claim, either. Most policies will compensate you in the event of a range of incidents like floods and break-ins. For example, MSIG home insurance covers you for fire, lightning, windstorm, flood, burst pipes, earthquakes, burglary, malicious damage and more.

ALSO READ: HDB fire insurance vs home insurance — what's the difference?

2. How do I choose a home insurance plan?

When buying home insurance or home contents insurance, the three biggest factors to compare are:

• Home contents coverage: Your home is where expensive appliances like your fridge, TV and computer live. So check the policy's definition of home contents to make sure that these items are covered. Check also that it covers your other treasured possessions, like that Brompton bike or your Magic: The Gathering collectibles.
• Renovations: Your renovation is likely to have cost a bomb. In the event of a fire or water damage, restoring your home back to a liveable condition will burn a hole in your pocket. So make sure any renovations, fixtures and fittings are protected.
• Premium: Of course, price is an important factor. Luckily, it's easy to compare home insurance plans on MoneySmart. Some affordable home insurance plans include AIG home insurance, which starts at $75+ for a three-room flat, and Tiq home insurance, which starts at $64+.

Other coverage types and considerations include:

• Personal liability: Most plans protect you from legal liability if something unfortunate happens in your home. For instance, if your PMD charger catches fire and destroys your entire block, you won't have to worry about get sued by your neighbours.
• Alternative accommodation: This benefit typically pays for a certain number of days of accommodation if you are forced temporarily vacate your home.
• Other perks: Some plans will cover you for things like cash, personal belongings, valuables, electronics or pets. Some also offer personal accident coverage for your household.
• Insured peril vs all-risk: All-risk plans cover you for all incidents except for what is explicitly excluded, while insured peril policies cover you only in the circumstances identified in your contract.

3. Best 5 best home insurance plans for HDB flats

Most home insurance providers in Singapore have helpfully packaged their plans and coverage according to the size of the HDB flat you live in, so you'll find three-room flat plans, four-room flat plans and so on.

Here are the five most value-for-money home insurance policies for an HDB four-room flat:

If you live in a different HDB flat type, head over to the MoneySmart home insurance wizard to compare home insurance policies for your flat size.

4. Best 5 best home insurance for private property

Private property runs the gamut from shoebox condos to sprawling landed homes, so you'll need to assess your needs and figure out which level of coverage is appropriate.

Below are the most affordable home insurance plans we found for a modest-sized (two-bedroom) condo:

As you might have noticed, some of the above plans do not include coverage for the building or require that you purchase building coverage as an optional add-on. This is because for many condos, it is the responsibility of the management committee to take out fire insurance for the whole property.

If you live in a house, look out for home insurance tailored to landed property. Such plans usually offer a higher amount of building coverage.

5. How much home insurance coverage do I need?

Unless you have experience working in the construction industry, your need for building coverage can be tricky to estimate. You should be calculating the cost needed to reinstate the property, including renovation, if something happens to it.

Imagine your home is destroyed in a fire or flood. How much would you spend redoing the floors, walls and so on? The size of your home and the value of your renovations will play a big part in determining how much this costs. For instance, that posh marble flooring or custom-made wood panelling might be costly to replace.

When assessing your need for home contents coverage, you likewise want to estimate the total value of what's inside your home. You'll want to focus on the most expensive items, such as electronics, appliances, jewellery, watches and high-cost furniture items.

6. I'm renting. Do tenants need home insurance too?

As a renter, you might be thinking: that's not my property. But you might nonetheless want to consider home insurance, since it can protect the personal belongings owned by you and not the landlord. It can also cover you for costs that your landlord is not responsible for.

For instance, if there is a fire or flood at home, your landlord might have to deal with the costs of renovating and reinstating the property. But if you are contractually obligated to service and maintain the air con unit, fridge and toilet, you might have to pay to get them fixed.

In addition, the cost of any lost or stolen belongings or personal electronics will of course not be borne by the landlord.

In reality, most tenants in Singapore don't buy home insurance. But it's worth considering if you are living in Singapore on a long-term basis and have many high-value belongings you wish to protect.

7. Does home insurance cover mortgage payments?

Home insurance only covers your physical home and its contents, which have nothing to do with whether you are able to keep up with your mortgage payments.

There is, however, another product called mortgage insurance that will pay off any sums remaining on your home loan if something happens to you (typically death or total and permanent disability). This saves your family from having to foot the bill on your behalf or risk losing their home.

8. How do I file a home insurance claim?

So the poop has hit your new ceiling fan, either literally or figuratively, and you need to make a claim.

The first thing to do is to contact your insurer immediately by calling your agent or dialling the company's hotline. Most insurers have a time limit, usually about 30 days, within which you must submit your claim.

You will be directed to fill out a claim form and attach supporting documents which, depending on your situation, might include the following:

• Assessment reports indicating the cause of the damage and a quotation for the repairs
• Receipts for damaged belongings
• Evidence of the damage, including photos
• Police report if a break-in or theft is involved
• Fire report from SCDF if a fire is involved
• Personal and contact details of third parties and witnesses, court documents and photographic evidence in the event of third party liability

ALSO READ: Why do people still opt for pricier new condos over resale in 2023: 4 case studies that show PSF isn't everything

This article was first published in MoneySmart.