Is the Home Protection Scheme compulsory?

Yes, for a CPF member who uses CPF savings to pay the monthly housing instalments on an HDB flat. It applies whether the loan came from HDB or a bank, because the trigger is the use of CPF rather than the lender. If the instalments are paid wholly in cash it is voluntary, though the CPF Board strongly encourages it (CPF Board, Home Protection Scheme).

Does the Home Protection Scheme cover a condominium or an executive condominium?

No. HPS covers HDB flats only. Private residential property, executive condominiums and privatised HUDC flats fall outside the scheme however much CPF the owner uses to service the loan, so those owners need commercial mortgage-reducing or life insurance instead.

When does HPS cover end?

At age 65, when the housing loan is fully repaid, or when the flat is sold — whichever happens first. Where the loan still has years to run after the owner turns 65, that remaining period is not protected by HPS and the owner should arrange private cover for it.

What does HDB Fire Insurance actually cover?

The cost of reinstating the internal structure, fixtures and areas built and provided by HDB — internal walls, floors, ceilings, doors, window frames, wiring and sanitary fittings. It does not cover renovations the owner added, nor furniture, appliances or personal belongings; those need a separate home contents policy. It is compulsory while an HDB housing loan is outstanding and is bought as a 5-year policy from HDB's appointed insurer.

Is HDB fire insurance compulsory?

Yes, for flat owners whose HDB housing loan started on or after 1 September 1994, for as long as the HDB loan is outstanding. The policy runs for 5 years and must be renewed every 5 years while the loan lasts (HDB, Fire Insurance page, updated 24 Jul 2026).

How much is HDB fire insurance?

A few dollars for five years. For policies from 16 Aug 2024 to 15 Aug 2029 the 5-year premium, including 9% GST, runs from $1.11 for a 1-room flat to $6.68 for an Executive or Multi-Generation flat; a 4-room flat pays $4.59 for a sum insured of $117,000. The current insurer is Etiqa (HDB, Fire Insurance page, updated 24 Jul 2026).

What is the difference between HDB fire insurance and home insurance?

HDB fire insurance is mandatory with an HDB loan and covers only the structure, fixtures and fittings HDB provided. Home insurance is optional, bought from any general insurer, and covers what fire insurance leaves out: renovations, furniture and personal belongings, and, depending on the policy, alternative accommodation and liability to neighbours.

What is the difference between HPS and HDB Fire Insurance?

HPS insures the owner and protects the loan: on death, terminal illness or total permanent disability it pays the outstanding housing loan to HDB or the mortgagee. HDB Fire Insurance insures the flat's HDB-built structure against fire and the other perils named in the policy. One would never pay out on the other's event, and neither covers the owner's renovations or contents.

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Paper 2 · Property Finance & Financial Calculations · 9 min read

HDB Fire Insurance & Home Protection Scheme (HPS) Explained

Practise this section (223 questions) → · 4.8 Property finance and financial calculations, in sets of about 30

Must-know for the exam

The Home Protection Scheme (HPS) is mortgage-reducing term insurance run by the CPF Board that pays off the outstanding housing loan; HDB Fire Insurance protects the flat's HDB-built structure.
HPS pays out on the insured owner's death, terminal illness or total permanent disability, settling the outstanding loan directly with HDB or the mortgagee up to the sum insured.
HPS is compulsory when CPF savings pay the monthly instalments on an HDB flat, whether the loan is from HDB or a bank; paying wholly in cash makes it voluntary.
HPS premiums are deducted annually from the CPF Ordinary Account, and cover ends at age 65, full repayment or sale of the flat, whichever comes first.
Exemption from HPS must be applied for and granted by the CPF Board on the strength of adequate private insurance; owning some insurance does not exempt a member automatically.
Co-owners each choose a share of HPS cover up to 100%, and the household's shares should total at least 100%; any uninsured portion remains owed by the survivor.
HPS covers HDB flats only: a condominium, an EC or a privatised HUDC flat falls outside it however much CPF the owner uses.
HDB Fire Insurance is compulsory while an HDB housing loan is outstanding, bought from HDB's appointed insurer as a 5-year policy renewed while the loan runs.
HDB Fire Insurance pays to reinstate the internal structure and fixtures built and provided by HDB, such as internal walls, floors, doors, window frames, wiring and sanitary fittings.
Neither HPS nor HDB Fire Insurance covers renovations, furniture, appliances or belongings, which need a separate home contents policy; HPS is not fire cover and pays nothing on a fire.

On this page · 3 sections

Almost every HDB owner ends up holding two insurances, and almost every candidate mixes them up. The Home Protection Scheme (HPS) protects the loan; HDB Fire Insurance protects the flat's structure. Neither protects the owner's renovations, furniture or belongings. A salesperson who cannot separate the three is one careless sentence away from a client believing their $60,000 kitchen is insured when it is not.

The two schemes side by side

	Home Protection Scheme (HPS)	HDB Fire Insurance
Run by	CPF Board	HDB, through its appointed insurer
What it protects	The outstanding housing loan	The structure — internal walls, floors, ceilings, doors, window frames, wiring and sanitary fittings built and provided by HDB
Insured event	The insured owner's death, terminal illness or total permanent disability	Fire and the other perils named in the policy
Compulsory when	CPF savings are used to pay the monthly instalments on an HDB flat (strongly encouraged, not required, if paying wholly in cash)	There is an outstanding HDB housing loan
Premium	Deducted annually from the CPF Ordinary Account	One premium for a 5-year policy, renewed while the HDB loan runs
Paid out to	HDB or the mortgagee — the loan is settled up to the sum insured	The cost of reinstating the damaged HDB-built structure
Does not cover	Private property, ECs, privatised HUDC flats — and it is not fire cover	Renovations, furniture, appliances and personal belongings

HPS is run by the CPF Board (CPF Board, Home Protection Scheme). HDB Fire Insurance is arranged by HDB through an appointed insurer: Etiqa for policies starting 16 Aug 2024 to 15 Aug 2029, FWD before that (HDB, Fire Insurance page, updated 24 Jul 2026).

HPS — the points that get tested

It is mortgage-reducing term insurance. The sum insured falls as the loan is repaid. On a valid claim the CPF Board settles the outstanding loan directly with HDB or the mortgagee, so the family keeps the flat rather than receiving a cash windfall.
The trigger is the use of CPF, not the lender. A member using CPF savings for the monthly instalments on an HDB flat must be insured whether the loan came from HDB or a bank (with a bank loan the member applies to the CPF Board for cover). Paying wholly in cash makes it voluntary — but still strongly encouraged.
Cover ends at 65, or when the housing loan is fully repaid, or when the flat is sold — whichever comes first. A loan still running after 65 leaves an uninsured tail the owner should cover privately.
Exemption must be applied for, and granted. A member with enough private insurance — whole life, term or mortgage-reducing — covering the outstanding loan against death, terminal illness and total permanent disability until the end of the loan term or age 65, whichever is earlier, may apply, through the insurer, to the CPF Board to be exempted. Owning some insurance does not exempt you automatically.
Co-owners each choose a share of cover, up to 100% each, and the household's shares should add up to at least 100%. Insure only part of the loan and the rest is simply unprotected — the survivor still owes it. This is the under-insurance trap the scheme exists to prevent.
HDB flats only. A condominium, an EC and a privatised HUDC flat are private property and fall outside HPS, no matter how much CPF the owner puts in. Those owners need commercial mortgage insurance instead.

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What does HPS protect, and what does HDB Fire Insurance protect?Show answer
HPS protects the outstanding housing loan on the insured owner's death, terminal illness or total permanent disability. HDB Fire Insurance protects the HDB-built structure. Neither covers renovations, furniture or belongings.
Is HPS compulsory for an owner who services a bank loan on an HDB flat with CPF?Show answer
Yes. The trigger is using CPF savings for instalments on an HDB flat, whoever the lender; with a bank loan the member applies to the CPF Board. Paying wholly in cash makes HPS voluntary.
When does HPS cover end?Show answer
At age 65, on full repayment of the loan, or on sale of the flat, whichever comes first. A loan that runs past 65 leaves an uninsured tail the owner should cover privately.
When is HDB Fire Insurance compulsory, and how long does each policy run?Show answer
While an HDB housing loan is outstanding (for HDB loans from 1 Sep 1994). Each policy runs 5 years and is renewed while the loan lasts; a 4-room flat pays $4.59 for five years for policies from 16 Aug 2024.
Can the owner of a condominium or an EC be covered by HPS?Show answer
No. HPS covers HDB flats only. Condominiums, ECs and privatised HUDC flats fall outside it, however much CPF is used to service the loan.

Common questions

Is the Home Protection Scheme compulsory?: Yes, for a CPF member who uses CPF savings to pay the monthly housing instalments on an HDB flat. It applies whether the loan came from HDB or a bank, because the trigger is the use of CPF rather than the lender. If the instalments are paid wholly in cash it is voluntary, though the CPF Board strongly encourages it (CPF Board, Home Protection Scheme).
Does the Home Protection Scheme cover a condominium or an executive condominium?: No. HPS covers HDB flats only. Private residential property, executive condominiums and privatised HUDC flats fall outside the scheme however much CPF the owner uses to service the loan, so those owners need commercial mortgage-reducing or life insurance instead.
When does HPS cover end?: At age 65, when the housing loan is fully repaid, or when the flat is sold — whichever happens first. Where the loan still has years to run after the owner turns 65, that remaining period is not protected by HPS and the owner should arrange private cover for it.
What does HDB Fire Insurance actually cover?: The cost of reinstating the internal structure, fixtures and areas built and provided by HDB — internal walls, floors, ceilings, doors, window frames, wiring and sanitary fittings. It does not cover renovations the owner added, nor furniture, appliances or personal belongings; those need a separate home contents policy. It is compulsory while an HDB housing loan is outstanding and is bought as a 5-year policy from HDB's appointed insurer.
Is HDB fire insurance compulsory?: Yes, for flat owners whose HDB housing loan started on or after 1 September 1994, for as long as the HDB loan is outstanding. The policy runs for 5 years and must be renewed every 5 years while the loan lasts (HDB, Fire Insurance page, updated 24 Jul 2026).
How much is HDB fire insurance?: A few dollars for five years. For policies from 16 Aug 2024 to 15 Aug 2029 the 5-year premium, including 9% GST, runs from $1.11 for a 1-room flat to $6.68 for an Executive or Multi-Generation flat; a 4-room flat pays $4.59 for a sum insured of $117,000. The current insurer is Etiqa (HDB, Fire Insurance page, updated 24 Jul 2026).
What is the difference between HDB fire insurance and home insurance?: HDB fire insurance is mandatory with an HDB loan and covers only the structure, fixtures and fittings HDB provided. Home insurance is optional, bought from any general insurer, and covers what fire insurance leaves out: renovations, furniture and personal belongings, and, depending on the policy, alternative accommodation and liability to neighbours.
What is the difference between HPS and HDB Fire Insurance?: HPS insures the owner and protects the loan: on death, terminal illness or total permanent disability it pays the outstanding housing loan to HDB or the mortgagee. HDB Fire Insurance insures the flat's HDB-built structure against fire and the other perils named in the policy. One would never pay out on the other's event, and neither covers the owner's renovations or contents.

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Study material aligned to the public CEA syllabus. Not financial or legal advice — verify current figures with the relevant authority (IRAS, HDB, CEA, MAS).