Home fire insurance and HPS

windwaver

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Hi folks, I know HDB provide basic fire insurance from Etiqa Insurance Pte Ltd and Home Protection Scheme (HPS) for mortages. Do you normally just stick to these 2 or switch to private providers?

Is there a big difference in premiums?
 

parallelyy

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Depends on your objective, the basic fire insurance will only protect the structure of your flat, not your renovations, furnitures and personal belongings, if you want to insured those against fire, you'll have to go for private options which cost more, since they provide wider coverage.

For HPS mortgage insurance, there really isn't any reason to switch to private, unless there are cheaper options or if you require insurance to cover beyond the loan amount.
 

lzydata

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windwaver

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Depends on your objective, the basic fire insurance will only protect the structure of your flat, not your renovations, furnitures and personal belongings, if you want to insured those against fire, you'll have to go for private options which cost more, since they provide wider coverage.

For HPS mortgage insurance, there really isn't any reason to switch to private, unless there are cheaper options or if you require insurance to cover beyond the loan amount.

Thanks, I have a decreasing term private mortgage insurance without HPS. All thanks to my ex-agent which is a total crap, unfortunately I only know about this 12 years later.

Anyway, HPS is subjected to underwriting right? If I cancel my private insurance (cost about $230 for both me and spouse annually), HPS seems more expensive from what I see.

Correct me if I'm wrong, thanks!
 

parallelyy

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Thanks, I have a decreasing term private mortgage insurance without HPS. All thanks to my ex-agent which is a total crap, unfortunately I only know about this 12 years later.

Anyway, HPS is subjected to underwriting right? If I cancel my private insurance (cost about $230 for both me and spouse annually), HPS seems more expensive from what I see.

Correct me if I'm wrong, thanks!
HPS and decreasing mortgage term serves the same purpose, you'd only need one of it.

So you and your wife are paying $460 in total?

In any case, I can't really comment without more details.
 

jovialger

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Thanks, I have a decreasing term private mortgage insurance without HPS. All thanks to my ex-agent which is a total crap, unfortunately I only know about this 12 years later.

Anyway, HPS is subjected to underwriting right? If I cancel my private insurance (cost about $230 for both me and spouse annually), HPS seems more expensive from what I see.

Correct me if I'm wrong, thanks!

If you have adequate private insurance that far exceed the mortgage, you can write in to have the need for HPS/private reducing term etc totally waived as well.
 

windwaver

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HPS and decreasing mortgage term serves the same purpose, you'd only need one of it.

So you and your wife are paying $460 in total?

In any case, I can't really comment without more details.

Nope, $230 per year for both of us combined. Think I last check HPS more expensive.

In that case, why do people still buy HPS?
 

Bigoya

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Nope, $230 per year for both of us combined. Think I last check HPS more expensive.

In that case, why do people still buy HPS?

Cos HPS deduct premiums frm CPF? Much like DPS, coverage is minimal. The only reason I could think of DPS's existance is for people who realy really can't afford to pay cash for better protection (or just not educated to do so).

A normal term insurance provides better value than HPS and mortgage-term for most cases.
 

windwaver

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Cos HPS deduct premiums frm CPF? Much like DPS, coverage is minimal. The only reason I could think of DPS's existance is for people who realy really can't afford to pay cash for better protection (or just not educated to do so).

A normal term insurance provides better value than HPS and mortgage-term for most cases.

That's a good point buddy. I think that's the only reason why people go for HPS instead of a cheaper, better coverage decreasing term insurance.
 

Bigoya

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I believe HPS is compulsory for HDB loans as well

Nope it's not.

It is compulsory to be insured under HPS only if you are using CPF-OA to pay your monthly HDB loan instalments provided you do not have any Whole Life / Term Life / Endowment / Life Riders / Decreasing Term Insurance that can cover your outstanding housing loan up to the full term of loan or 65 years old, whichever is earlier, in the event of death/TI/TPD.
 
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