What is the difference between Home Protection Scheme , HDB Fire Insurance and Home Insurance?
If you own a Housing & Development Board (HDB) flat, it is important to understand the different types of insurance available to you. Here's a breakdown of the three main types:
- Home Protection Scheme (HPS): This is a type of mortgage-reducing insurance that protects you and your loved ones from losing your HDB flat due to the inability to make mortgage payments in the event of death, terminal illness or total permanent disability.
HPS is administered by CPFB and insures members up to age 65 or until the housing loans are paid up, whichever is earlier.
- HDB Fire Insurance Scheme: This insurance, which is administered by HDB, helps to cover the cost of reinstating damaged internal structures, fixtures, as well as areas built and provided by HDB in the event of a fire. This can help to relieve the financial burden of repair work for flat owners.
- Home Insurance: It is also known as Home Content Insurance or Homeowners Insurance, which covers a residence and helps in paying for repair or replacing one’s belongings if they are damaged by perils such as fires, vandalism, burglary and more. Home insurance can be purchased from private insurers.