Coverage for Third-Party Claims under HDB Fire Insurance Scheme

61 Mr Gan Thiam Poh asked the Minister for National Development whether the Ministry will consider making it mandatory to cover third-party claims under the HDB Fire Insurance Scheme.

Mr Lawrence Wong: Currently, all flat owners with an outstanding housing loan from HDB are required to take up a basic fire insurance policy under the HDB Fire Insurance Scheme.

The HDB fire insurance policy provides basic coverage for the reinstatement cost of the building structures and fixtures, in the event of a fire. It does not cover renovation or third-party liability, in order to keep the premium low and affordable. This is in line with the market practice for private properties where the bank is the mortgagee.

However, flat owners who wish to take up additional insurance cover for third-party liability have the flexibility to do so with an insurer of their choice.