PGI Property Insurance

Question 1

What does the compulsory HDB fire insurance scheme cover in Singapore?

Accepted Answer

The building structure of the HDB flat against fire damage; it does NOT cover contents, renovations, or personal belongings

Answer

Everything inside the flat

Answer

Only electrical fires

Answer

Both structure and contents

Question 2

What is 'home contents' insurance in Singapore and what does it cover?

Accepted Answer

Insurance covering personal belongings, furniture, electrical appliances, and renovations inside the home against specified perils

Answer

Insurance for the building structure only

Answer

Insurance for the garden and exterior

Answer

Insurance covering only jewellery

Question 3

What is the difference between 'replacement cost' and 'indemnity value' in Singapore property insurance?

Accepted Answer

Replacement cost pays the full cost to replace an item with a new equivalent; indemnity value pays the current depreciated value of the item

Answer

They are the same

Answer

Replacement cost is always cheaper

Answer

Indemnity value is always higher

Question 4

What is 'public liability' coverage in a Singapore home insurance policy?

Accepted Answer

Coverage for legal liability if someone is injured on your property or you accidentally cause damage to a neighbour's property

Answer

Coverage for public events held at home

Answer

Coverage for publicity costs

Answer

Coverage for public utilities

Question 5

What specific peril is commonly excluded from standard home insurance policies in Singapore?

Accepted Answer

Flood and earth movement (subsidence), which typically require special coverage or endorsements

Answer

Fire

Answer

Theft

Answer

Electrical damage

Question 6

How should homeowners determine the correct sum insured for their home contents insurance in Singapore?

Accepted Answer

Calculate the total replacement value of all contents including furniture, electronics, clothing, valuables, and renovation costs

Answer

Use the purchase price of the home

Answer

Estimate half the home's market value

Answer

Use a standard fixed amount for all homes