Fire Insurance Policies Purchased by HDB Home Owners

Er Dr Lee Bee Wah asked the Minister for National Development (a) how many HDB flats are currently covered by fire insurance purchased by home owners; (b) what is the range of annual premiums of such fire insurance; and (c) whether HDB can work with insurance companies to make such insurance premiums more competitive so as to encourage home owners to take up home fire insurance policies.

Mr Khaw Boon Wan: As at 31 March 2014, 708,363 HDB flats, or 81% of sold HDB flats, are covered by basic fire insurance offered by HDB's appointed insurer. HDB does not track the number of HDB flats covered by fire insurance offered by other insurers.

The basic fire insurance premiums offered by HDB's appointed insurer are inexpensive. They range from $1.80 for a 1-room flat, to $8.77 for an Executive/Multi-Generation flat, for a five-year period.

HDB appoints its insurer after an open tender. The premiums are hence very competitive. Flat owners should not have any difficulty getting coverage and are strongly advised to do so. HDB will continue to encourage home owners to take up home fire insurance policies.