Protect Your Home

By : Atikah Razak
10 October 2018

Mortgage insurance is one of the most important things to consider when you buy a home. Think of it as a safety net – it ensures that you will not lose your HDB flat due to unpaid loans in the event of death, terminal illness, or permanent disability. The Home Protection Scheme (HPS) is a form of mortgage insurance that does just that!

Some people mistake HPS for fire insurance, when in fact they are two separate things! Check out the table below for a quick comparison between mortgage and fire insurance.

 

Home Protection Scheme (HPS)

HDB Fire Insurance Scheme

What

  • Mortgage-reducing insurance that protects CPF members against losing their HDB flat in the event of:

    • Death

    • Terminal illness

    • Total permanent disability

  • Relieve flat owners of the financial burden of repair work in the unfortunate event of a fire

Who

Compulsory for:

  • HDB flat owners who are using their CPF savings to pay their monthly housing loan instalments

Optional for:

  • HDB flat owners who have private life insurance or mortgage-reducing insurance that can sufficiently cover the outstanding housing loan

Compulsory for:

  • Flat owners with HDB loans

What it covers

  • Outstanding housing loan, up to the insured sum

  • Cost of reinstating damaged internal structures, fixtures, as well as areas built and provided by HDB

  • Excludes renovations or improvements made by flat owners

  • Excludes home contents such as furniture and personal belongings

Amount to be insured

  • Total share of cover per household should ideally add up to at least 100%.

  • But the amount can be higher or lower, depending on your circumstances and preferences.

  • Based on flat type

Duration to be insured

  • Up to age 65 or until the housing loans are paid up, whichever is earlier

  • Minimally, at least until the housing loans are paid up

  • Insurance has to be renewed every 5 years

Payment of premium

  • Automatically deducted from CPF Ordinary Account (OA) – flat owners are only required to pay the premium for 90% of the HPS cover period.

Alternatives:

  • e-Cashier or e-Nets

  • AXS/ SAM stations

  • Cash at any Singapore Post branches

  • Cheque to CPF Board

  • Direct payment to Etiqa Insurance Pte Ltd, the current appointed insurer for the HDB Fire Insurance Scheme

More Details on HPS

Now the most important question is… how much does the HPS premium cost? The amount will vary based on the following factors:

  1. Outstanding housing loan on the flat

  2. Loan repayment period of the flat

  3. Type of loan (concessionary or market rate)

  4. Age and gender of member

For a more accurate estimate of what your premium would cost, do make use of the CPF Board’s HPS premium calculator!

The HPS application process differs based on whether you are taking a loan from HDB or a bank. For HDB loan, you can drop by the HDB Hub or any HDB branch office to apply for the HPS when you are applying to use your CPF savings to pay the monthly housing instalment. For bank loan, you should complete these forms, which are available at the banks or CPF service centres.

More Details on HDB Fire Insurance

The HDB Fire Insurance has to be renewed every 5 years, and the premium depends on your flat type. From now till 15 August 2019, the premiums are as follows:

Flat Type

5-Year Premium (Including 7% GST)

Sum Insured

1-room

$1.50

$19,300

2-room/ 2-room Flexi

$2.50

$26,300

3-room

$4.50

$41,800

4-room

$5.50

$69,100

5-room

$6.60

$75,600

Executive/ Multi-Generation flats

$7.50

$98,200

Studio Apartment (Type A)

$3.50

$29,000

Studio Apartment (Type B)

$4.00

$37,200

If you would like more extensive coverage that includes your personal effects, you can buy an additional policy from an insurer of your choice - more details here!

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