What Is the Difference Between Basic Fire and Contents Insurance?

Before buying an HDB flat, condominium, or a landed property, you must purchase a fire insurance policy. It’s a mandatory insurance policy plan that ONLY covers any damage to your home’s structure, replacement of any “original” fixtures/fittings (HDB), or the rebuilding of your home if you own a landed property.

Here’s a look at how much a basic fire insurance policy costs and what types of damage are covered:


What Does Basic Fire Insurance Cost?

A basic fire insurance policy has some of the lowest premiums you’ll ever pay – it only costs a couple of dollars for a 5-year plan if you own an HDB flat. But if you own a condominium or a landed property, your premium will differ.

Here’s how much you can expect your premium to cost.

  • HDB Owners: If you own an HDB flat, your appointed insurer is Etiqa Insurance Berhad – here’s a look at the coverage and policy premiums you can expect to pay, which is dependent on the size of your flat.
  • Condominium/Private Apartment Owners: If you own a condominium or private apartment, chances are that the whole block has been registered as a Management Corporation Strata Title property – meaning the Management Corporation is responsible for insuring the whole property.
  • Landed Property Owners: If you own a landed property, you can take out fire insurance from any number of providers. However, fire insurance only covers the cost to rebuild your property – it won’t cover your home’s market value.


What Does Basic Fire Insurance Cover?

A basic fire insurance policy sounds like it covers any and all damage caused to your home in the event of a fire or any other “applicable” types of damage right? Unfortunately, that’s an assumption that costs many homeowners tens of thousands of dollars each year – because your possessions are NOT covered.

You’ll only get to claim damage cause to your home’s structure, “original” fixtures/furnishings, or the rebuilding of your home if it’s destroyed by the following causes:

  • Fire Damage
  • Lightning Damage
  • Damage From Explosions
  • Damage From Aircraft
  • Damage From Bursting/Overflowing Water Pipes
  • Earthquake Damage
  • Smoke Damage
  • Vehicle Impact Damage
  • Malicious Damage From Vandalism
  • Riot/Strike Damage
  • Damage From Spontaneous Combustion
  • Damage From Landslide/Subsidence