Whether you have just collected your keys to a new BTO or are giving your resale flat a much-needed makeover, renovations are a massive investment. In Singapore, a typical renovation can easily cost anywhere from $30,000 to over $100,000.
But here is the million-dollar question: If a pipe bursts and ruins your brand-new vinyl flooring or a fire damages your custom kitchen cabinets, will your insurance pay for it?
The short answer is: It depends on which insurance you have.
1) The Big Myth: “My HDB Fire Insurance Covers Everything”
Many homeowners believe that because they have the mandatory HDB Fire Insurance (or the basic fire insurance required by their bank), they are fully protected.
This is a mistake. Basic fire insurance only covers the internal building structure and the original fixtures provided by HDB or the developer.
- What it covers: Walls, pillars, and original flooring.
- What it MISSES: Your expensive built-in wardrobes, kitchen cabinets, false ceilings, and any flooring you installed yourself.
Renovation Exclusion: Crucially, this type of insurance policy does not cover the renovation process. If a renovation contractor accidentally causes a fire that guts the flat, the HDB Fire Insurance will pay for the reinstatement of the bare shell (original walls and standard doors).
It will not compensate the homeowner for the loss of their SGD 50,000 kitchen renovation, nor will it cover the liability if the fire spreads to neighbors.
2) Home Contents Insurance
To protect your renovation, you need a separate Home Contents Insurance policy (offered by providers like FWD, Income, Etiqa, or Great Eastern).
In the insurance world, “Renovations” are defined as any improvements or additions you’ve made to the property. This includes:
- Built-in carpentry (wardrobes, kitchen sets)
- New flooring (vinyl, marble, tiles)
- False ceilings and lighting fixtures
- Plumbing and electrical rewiring
Most home insurance plans allow you to choose a “Sum Insured” for renovations. If you spent $50,000 on your renovation, you should ensure your policy covers at least that amount.
The Renovation Exclusion Clause: However, almost every standard home contents policy contains a specific exclusion for loss or damage arising from “construction, alteration, repair, or renovation”.
Example: If a pipe bursts spontaneously in a lived-in home, Home Contents insurance pays. If a pipe bursts because a contractor drove a nail into it during a renovation, Home Contents insurance denies the claim, citing the renovation exclusion.
3) During vs. After: The Two Stages of Coverage
It is important to distinguish between having a renovated home and the act of renovating.
| Stage | What Insurance You Need | What It Covers |
| During Renovation | Renovation Insurance | Accidents during the work (e.g., a worker accidentally breaks a window or damages a neighbor’s wall). |
| After Moving In | Home Contents Insurance | Damage to your finished renovations caused by “insured perils” like fire, burst pipes, or theft. |
Most standard home insurance policies do not cover damage caused by your contractor’s poor workmanship. That is a matter between you and the renovation firm!
4) Renovation Insurance: Protecting Your Home While the Work is Happening
While standard home insurance protects your finished renovation, it typically does not cover the “construction phase.” This is where Renovation Insurance comes in.
Many homeowners assume the contractor’s insurance is enough, but having your own policy ensures you aren’t left out of pocket if things go wrong during the heavy lifting.
For a list of reliable renovation contractors, check out this directory.a) Why You Need It During Construction
Renovation sites are high-risk zones. This specific insurance covers three main areas:
- Damage to Your Property: If a worker accidentally knocks down the wrong wall or shatters a glass partition during installation, this covers the repair or replacement costs.
- Third-Party Liability: This is the most critical part. If your contractor accidentally punctures a pipe that causes a leak into your neighbor’s unit, or if debris falling from your flat damages a car below, you (the homeowner) could be held legally liable.
- Public Liability: Covers injuries to visitors or neighbors who might be affected by the renovation work (e.g., someone tripping over renovation materials in the common corridor).
b) Who Should Buy It?
In Singapore, most reputable contractors have their own Contractors’ All Risks (CAR) insurance. However, you should always:
- Ask for proof: Request a copy of their insurance certificate before work begins.
- Check the limits: Ensure their coverage is high enough to cover potential damage to the entire building or neighboring units.
- Consider your own “top-up”: If the contractor’s insurance is minimal, you can purchase a short-term Renovation Insurance policy (usually for 3 to 6 months) to bridge the gap.
