It is mandatory for HDB homeowners to purchase a fire insurance policy with HDB's appointed insurer if they have taken a mortgage loan from HDB after September 1994 and have yet to fully repay the loan.

The policy covers the cost of reinstating the damaged interior of the flat built by HDB for damages caused by fire, lightning, explosion, bursting and overflowing of water pipes, etc.

For HDB homeowners who are taking a mortgage loan from the banks, the banks would normally also require them to purchase a fire insurance policy.

It is advisable for private property owners to have adequate fire insurance to protect them against losses or damages resulting from a fire, especially as such properties could be expensive.

Read more about fire insurance.