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

The compulsory HDB fire insurance covers only the building structure. Home contents (furniture, electronics, personal items) and renovations require separate home contents insurance.

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

Home contents insurance protects movable property inside the home: furniture, electronics, clothing, jewellery (up to limits), and renovation fixtures against perils like fire, theft, water damage, and storm.

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

Replacement cost covers the expense of buying a brand new equivalent item. Indemnity value deducts depreciation for wear and tear, resulting in a lower payout, especially for older items.

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

Public liability in home insurance covers your legal liability if a visitor is injured in your home or if something from your home (e.g., a falling plant pot) damages a neighbour's property.

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

Standard home insurance policies in Singapore typically exclude flood damage and earth movement (subsidence). Given climate change risks, some insurers now offer flood coverage as an add-on.

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