SINGAPORE: After a fire ripped through two flats in Toa Payoh on Tuesday (Jul 29), two home owners were left grappling with the loss of their units and belongings.
The owner of the unit where the fire started told CNA that “everything is gone” and that his children now have “nothing”.
Of the 1,990 fires the Singapore Civil Defence Force (SCDF) responded to last year, nearly half – 968 – were fires involving residential buildings.
How does a home owner recover financially after a fire? What is covered by insurance – and what type of insurance is needed?
What is fire insurance?
There are two types of insurance home owners can use to cover their homes and belongings – fire insurance and home insurance.
For those with outstanding Housing and Development Board (HDB) or bank loans, fire insurance is compulsory. Home owners buy this with HDB’s appointed insurer or with the bank providing the loan.
Owners of HDB flats whose loans start on or after Sep 1, 1994 must buy and then renew their fire insurance plans every five years.
The insurance scheme is meant to help alleviate the financial burden of repair works in case of fires. It covers the cost of reinstating damaged internal structures, fixtures and areas built and provided by HDB.
The premiums apply to a five-year term, and the price and coverage vary depending on the type of flat.
For instance, the current five-year premium for a four-room HDB flat is S$4.59 (US$3.55) and insures a sum of up to S$117,000. The premium for a two-room flat is S$1.99 and covers costs of up to S$57,000.
The current insurance provider – from Aug 16, 2024 to Aug 15, 2029 – is Etiqa. The provider for the five years prior was FWD.
Many scenarios are covered under Etiqa’s policy, including aircraft damage, smoke damage and malicious damage.
The insurance also covers loss or damage to the insured property resulting from a fire in an adjoining property, as well as any loss or damage caused during the operation to extinguish the blaze.
