Considering how you already have to pay for your mandatory HDB fire insurance (or even a mortgage fire insurance as well, for those of you on a bank loan), do we really need to still get home insurance?

Many people mistakenly believe their house is completely covered for, but the truth is far from it. HDB fire insurance only covers for damages to core structures provided by HDB (eg. beam collapse, walls or flooring), whereas your bank’s mortgage fire insurance mainly protects your bank’s financial interest and not yours. What that means is that in the event that your house (the mortgaged property) is damaged by a fire, the bank can make a claim on the policy to protect themselves in the meantime. This works in the same way for private properties such as condominiums where the management requires you to get fire insurance. This enables the management group to make …