HDB Flats Damaged by Fire and Households Covered under HDB Fire Insurance Scheme
Ministry of National DevelopmentSpeakers
Summary
This question concerns fire incidents in HDB flats and the scope of the HDB Fire Insurance Scheme. Mr Sitoh Yih Pin and Ms Foo Mee Har inquired about fire statistics and whether insurance should be mandatory or expanded to cover home contents. Minister for National Development Desmond Lee responded that 51% of flats are currently insured, with mandatory coverage required only for those with HDB mortgage loans. He noted that while the scheme offers inexpensive premiums for structural repairs, it remains the owners' responsibility to secure additional coverage for furniture and personal belongings. The Minister concluded that flat owners without HDB loans are encouraged to ensure their properties are adequately protected through insurers of their choice.
Transcript
49 Mr Sitoh Yih Pin asked the Minister for National Development (a) in each of the past five years, what is the number of HDB flats that are damaged in a fire; and (b) whether HDB will consider expanding the HDB Fire Insurance Scheme to include home contents such as furniture, renovation and loss of personal belongings.
50 Ms Foo Mee Har asked the Minister for National Development (a) what is the current percentage of HDB households that are insured under the HDB Fire Insurance Scheme; and (b) whether the Ministry can consider making the HDB Fire Insurance Scheme mandatory for all HDB flats, with support to be provided to those who are unable to afford this scheme.
Mr Desmond Lee: The number of residential fire incidents reported to HDB over the past five years are shown in Table 1.
As of 31 July 2022, 51% of HDB flats are insured under the HDB Fire Insurance Scheme. It is mandatory for flat owners who take a mortgage loan from HDB on or after 1 September 1994 to purchase the HDB fire insurance from HDB’s appointed insurer.
The HDB Fire Insurance Scheme relieves HDB flat owners of the financial burden of repair work to their flat in the event of a fire. The basic fire insurance premiums offered by HDB's appointed insurer are inexpensive. For a five-year coverage, the current premiums range from $1.62 for a 1-room flat, to $8.10 for an Executive/Multi-Generation flat.
Flat owners who do not take a mortgage loan from HDB are not required to purchase the HDB fire insurance policy. We understand that some financial institutions do impose a requirement on HDB flat owners who took a mortgage loan from them, to buy home insurance from their appointed insurer. For all other flat owners, they have the option to purchase insurance cover with an insurer of their choice and are encouraged to ensure that their properties are adequately insured against damages caused by unfortunate accidents such as fire.
As with many other forms of insurance, it is the responsibility of owners to ensure that they have proper insurance coverage or the financial means to repair and restore their properties in case of damage.