Home renovation insurance is the cover that protects you while contractors are tearing up your flat, not after they leave. People assume their HDB fire insurance handles it. It doesn't. The HDB scheme only rebuilds the bare shell HDB gave you, so a burst pipe that floods the unit below or a tile that drops on a neighbour during hacking is on you unless someone is insured for the works. There are three separate things doing three separate jobs here: the contractor's all-risks policy for the build, public liability for third parties, and a home insurance policy for your finished renovation. This guide sorts out which one is compulsory, who is supposed to pay, and what each costs in 2026.
The HDB Fire Insurance Scheme pays only to reinstate "internal structures, fixtures and areas built and provided by HDB", per CPF's own homeowner guidance. That means the original concrete, the standard doors, and the basic fittings the flat came with. It excludes home contents, furniture, and renovations, which is exactly the stuff a renovation puts at risk.
Etiqa Insurance has been the appointed insurer for the scheme since 16 August 2024, and the cover is compulsory for any flat owner with an outstanding HDB loan taken on or after 1 September 1994. The 5-year premium is small, running from roughly $1.99 for a 2-room flat to about $6.68 for an executive unit (inclusive of 9% GST), which tells you how limited the cover is. A policy that costs a few dollars for five years is not going to pay out six figures when a wet-work job leaks through the floor slab.
So the gap is structural. Before a single wall is hacked, the value at risk jumps to your whole renovation budget plus your liability to neighbours and the building. We break the fire-versus-home distinction down further in our guide to fire insurance vs home insurance.
"Home renovation insurance" is not one product. It is shorthand for whichever of these three you need, and most homeowners touch all three at different stages.
CAR is a short-term, construction-period policy covering accidental physical damage to the works in progress and on-site materials. Your interior designer or contractor holds it, not you. It runs only for the duration of the job and lapses when the renovation finishes.
This is the one HDB cares about. It pays third parties when renovation works injure someone or damage property that isn't yours, such as the corridor, the lift lobby, or the flat below. For most HDB renovation projects the minimum public liability sum starts at $50,000, with the exact figure set by the scope of works. Condo management corporations (MCSTs) often demand higher limits, up to $250,000 for premium developments.
Once works are done, a home insurance policy protects the renovation itself against fire, burst pipes, and theft. Income's Enhanced Home Insurance, for example, explicitly covers "improvements and additions... in the form of fixtures and fittings" like flooring, built-in wardrobes, and kitchen cabinets. This is the long-term cover, and it is the one most people skip. See our rundown of the main types of home insurance to match a plan to your unit.
Public liability cover meeting HDB's minimum is a prerequisite for the renovation permit. No proof of insurance, no permit. No permit, no legal renovation. Your contractor usually arranges this and submits it as part of the HDB e-Service application, but you should ask to see the certificate before the deposit goes out.
For condos, the MCST plays the gatekeeper role HDB plays for flats. Most require a valid certificate of insurance plus a refundable renovation deposit, typically $500 to $5,000, before approving the works. If you are weighing flat versus condo for your first home, the renovation-approval friction is one more line item in our HDB vs condo comparison.
Renovation-period cover is cheap relative to the budget it guards. The figures below are indicative market ranges (GST may apply on top) collected as of June 2026; your actual quote depends on contract value, scope, and the insurer. Home insurance premiums are the recurring cost you carry after the dust settles.
| Project / cover | Typical contract value | Indicative premium |
|---|---|---|
| Light refresh (CAR) | Under $20,000 | $50-$100 |
| 3-room HDB (CAR) | $25,000-$40,000 | $150-$250 |
| 4-5 room HDB (CAR) | $45,000-$75,000 | $200-$350 |
| Condo (CAR) | $80,000-$120,000 | $400-$600 |
| Large / landed (CAR) | $120,000+ | $600-$850+ |
| Home insurance (annual) | Post-completion cover | from $35.97/yr incl GST (Income, min premium) |
The split trips people up because the contractor holds two of the three policies, which makes homeowners assume they are covered for everything. They aren't. The contractor's CAR and public liability protect the works and third parties during the job. They do nothing for your finished renovation a year later, and they do nothing if the contractor never starts or runs off with the deposit.
Treat the contractor's cover as the floor, not the ceiling. Your own home insurance picks up where their site cover stops. Budget the recurring premium the same way you budget the reno loan repayment, and run the numbers early with our renovation cost calculator so the insurance line isn't an afterthought.
Even with all three in force, some risks sit outside every policy. Knowing them upfront is the difference between a clean claim and an argument.
Workmanship is the big one. CAR pays for accidental damage, not for a contractor's defects, poor finishing, or a job done wrong. If your contractor disappears mid-project, that is a contractual dispute for CASE or the courts, not an insurance claim. Read the exclusions on whatever cover you are shown, and check the claim excess and the definition of an insured event before you rely on it.
No. The HDB Fire Insurance Scheme only reinstates the original internal structures and fixtures HDB built and provided. It explicitly excludes renovations, home contents, and personal belongings, so any damage to your reno works is not covered by it.
Both, for different things. The contractor or interior designer holds the contractor's all-risks and public liability cover for the build period, which HDB needs before issuing a permit. You buy the home insurance that protects the finished renovation long after the works are done.
Public liability cover at HDB's minimum is effectively compulsory because no renovation permit is issued without it. For condos, the MCST requires a certificate of insurance plus a deposit. Home insurance on the finished reno is not legally required but is strongly advised.
Contractor's all-risks cover for a typical HDB job runs roughly $150 to $350, and condos $400 to $600, as of June 2026 (GST may apply). Annual home insurance starts from about $35.97 including GST for Income's minimum flexible premium.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.