By The Big Buy desk · Last verified 29 September 2026
If you have an outstanding HDB loan that started on or after 1 September 1994, you must buy HDB fire insurance and renew it every five years for as long as the loan lasts. It’s cheap, it must be paid in cash rather than CPF, and it’s bought from the insurer HDB appoints. It covers the cost of reinstating the flat’s internal structure, fixtures and areas built and provided by HDB after a fire. It does not cover your renovation, furniture, appliances or belongings; for those, you need a separate home contents policy.
Quick facts
- Compulsory for owners with an outstanding HDB loan that started on or after 1 September 1994.
- Bought for five years at a time and renewed every five years.
- Paid in cash; CPF can’t be used.
- Covers the structure, fixtures and areas built by HDB, against fire.
- Doesn’t cover renovation, furniture, appliances or belongings.
- The five-year premium is a few dollars; the sum insured depends on flat type.
What does it cover?
The cost of reinstating the parts of your flat that HDB built: internal walls, floors, ceilings, fixtures and areas provided by HDB. The sum insured is set by flat type, with larger flats insured for more.
What doesn’t it cover?
Anything you added or brought in: renovation works such as carpentry, flooring and false ceilings, furniture, appliances, electronics and personal belongings. It also covers fire, not the other things that commonly go wrong at home, such as burst pipes, theft or accidental damage.
Fire insurance or home contents insurance?
| HDB fire insurance | Home contents insurance | |
|---|---|---|
| Required? | Yes, with an outstanding HDB loan | No |
| Covers | Structure and HDB’s fixtures | Renovation, contents, and often personal liability |
| Events | Fire | Usually fire, theft, water damage and more, depending on the policy |
| Bought from | HDB’s appointed insurer | Any insurer |
The WahLiao Verdict
The compulsory policy protects HDB’s walls, not your renovation. If you’ve spent tens of thousands of dollars on carpentry and appliances, price a home contents policy against what you’d lose, and set a reminder to renew the fire insurance every five years.
Questions people ask
I’ve paid off my HDB loan. Do I still need it?
It’s no longer compulsory, but HDB still advises having fire insurance.
What if my loan is from a bank?
The compulsory scheme is tied to HDB loans; banks usually require their own fire insurance. Check your loan terms.
Is this the same as the Home Protection Scheme?
No. The Home Protection Scheme is a CPF mortgage insurance that pays off the loan if a member dies or is disabled; it doesn’t cover damage to the flat.
Who is the insurer?
HDB appoints one for a fixed term. Check HDB’s or CPF’s current pages for the insurer and premiums before you buy or renew.
Sources: CPF Board, insurance for your HDB flat; HDB via MyNiceHome, protecting your home; DBS on fire and contents insurance; ShopBack on what the scheme covers. Official pages differ on the current appointed insurer, so this page names none. This is general information, not insurance advice.
Read next: HDB Renovation Rules · HDB Loan or Bank Loan · Back to The Big Buy
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