Summary
HDB flat owners who use their CPF savings to pay monthly housing loan instalments must be insured under the Home Protection Scheme (HPS), according to CPF Board. HPS is mortgage-reducing insurance: if an insured owner dies, becomes terminally ill or is totally and permanently disabled, it pays off the outstanding housing loan up to the sum insured. Cover runs until the owner turns 65 or the loan is paid up, whichever comes first.
Owners whose HDB loan started on or after 1 Sep 1994 must also hold HDB fire insurance. Neither policy pays for furniture, renovations or personal belongings.
Who must take HPS
HPS cover is required while CPF savings pay the instalments, CPF Board says. Owners who pay in cash can apply too and are strongly encouraged to. Cover is subject to approval and the applicant being in good health, and CPF Board may ask for a medical examination. An owner who is not eligible can still use CPF savings for the instalments.
From 26 May 2025, HPS expanded to cover members with certain pre-existing health conditions that are not so severe, such as certain types of stroke and heart disorder. CPF Board assesses each application and offers eligible members cover with premium loading, a higher premium. Generally, members who are currently receiving treatment for serious medical conditions such as cancer, stroke or kidney failure are not eligible, CPF Board says.
How cover and premiums work
- Share of cover: each owner can take up to 100%, and the shares in a household must add up to at least 100%. Each owner's cover should at least match their share of the monthly instalments.
- What a 50/50 split means: if two co-owners take 50% each and one makes a claim, HPS pays 50% of the outstanding loan; the other owner keeps paying the rest.
- Premiums: deducted once a year from the Ordinary Account (OA). Owners pay for 90% of the cover period, so a 30-year cover needs 27 years of premiums.
- What sets the premium: age and gender, share of cover, outstanding loan, repayment period and loan type, according to CPF Board's HPS handbook (May 2022).
- Missed premiums: the premium is deducted before the instalments. If the OA cannot cover it and the owner does not pay within the grace period, the policy lapses and the owner must reapply, subject to their health at that time.
Sources: CPF Board, Protect your home (updated 23 Apr 2026); Protecting against losing your home; Important notes on HPS (updated 18 Aug 2025); HPS Handbook B (May 2022).
What HPS pays, and when cover ends
HPS pays on death, terminal illness (an illness likely to cause death within 12 months) or total permanent disability, which includes being permanently unable to work. After a claim is approved, HPS may pay the instalments for up to two years before CPF Board reviews the remaining sum. Any amount above the outstanding loan goes to the member's OA. Claims arising from suicide, self-inflicted injury or certain criminal acts in the first year of cover are excluded.
Cover ends when the loan is paid, the flat is sold, new HPS cover is issued for another flat, or the member stops being a Singapore Citizen or permanent resident. Unused premiums go back to the OA. Owners whose loan runs past 65 should consider private cover for the years after HPS ends, CPF Board says.
Owners who already hold a whole life, term or endowment policy, a life rider or a mortgage-reducing term assurance (MRTA) policy can apply, through their insurer, to be exempted. CPF Board says the policy must cover the outstanding loan until the end of the loan term or age 65, whichever is earlier.
HDB fire insurance
HDB fire insurance is mandatory for owners with an HDB loan that started on or after 1 Sep 1994, HDB says, and the policy must be renewed every five years. The current insurer is Etiqa Insurance Pte. Ltd.; FWD held the scheme from 16 Aug 2019 to 15 Aug 2024.
The policy covers internal structures, fixtures and areas built and provided by HDB. It does not cover household contents such as furniture, renovations or personal belongings, HDB says.
| Flat type | Five-year premium (incl. GST) | Sum insured |
|---|---|---|
| 1-room / CCA | S$1.11 | S$37,900 |
| 2-room / Flexi / Studio | S$1.99 | S$57,000 |
| 3-room | S$3.27 | S$83,300 |
| 4-room / S1 | S$4.59 | S$117,000 |
| 5-room / S2 / 3Gen | S$5.43 | S$144,800 |
| Executive / Multi-Generation | S$6.68 | S$176,700 |
Source: HDB, fire insurance page, for policies from 16 Aug 2024 to 15 Aug 2029.
What this means for Singapore flat owners
The two compulsory policies protect the loan and the structure and fittings HDB provided. Spending on renovation and furniture is protected only if the owner insures it separately.
Two settings are worth checking. Co-owners who split HPS cover 50/50 leave the survivor with half the loan after a claim; a higher share costs more but clears more of the debt. And HPS stops at 65, so a loan that runs longer has an uninsured tail.
Illustration: a couple buying a 4-room resale flat
Illustration only. A couple, both 35, take a 30-year loan for a 4-room resale flat and pay it from CPF. HPS covers them to 65, the year the loan ends, and they pay premiums for 27 of the 30 years. If each takes 50% cover and one dies at 50, HPS settles half of the loan then outstanding. Their fire policy insures HDB's structure and fittings for five years at a time; their renovation sits outside it.
Education only — not tax, legal or investment advice. Confirm with a licensed professional.
What to do next
- Check each owner's HPS share of cover with CPF Board and make sure the household total is at least 100%.
- Estimate the premium with CPF Board's HPS premium calculator before choosing a higher share.
- Buy HDB fire insurance if you have an HDB loan, and note the five-year renewal date.
- Decide separately whether to insure your renovation and contents.
- Ask a verified financial adviser to review your cover: https://proprkey.com/en/pros?segment=legalFinance