Does loss of rent insurance cover a tenant who stops paying?

No. Loss-of-rent cover in Singapore home policies only pays while the unit is uninhabitable because of an insured event such as a fire or major leak. MSIG HomeEasy caps it at 10% of the Section 1 sum insured, and Chubb deducts the security deposit from loss-of-rent payments.

Landlord Guide

Does Landlord Insurance Cover Tenant Damage in Singapore?

By Mr Kobayashi, Co-Founder, REINSTATE.by MCSG · Updated 4 October 2026 · 7 min read

Usually not. Standard Singapore home policies cover fire, burst pipes, theft by break-in and third-party vandalism, but the policy wordings we checked exclude malicious damage by tenants, and none pay for wear, neglect or a tenant's pets. For most landlords, the security deposit and the reinstatement clause are the real protection against tenant damage. Insurance covers the disasters.

Many landlords assume their home policy will pay if a tenant leaves holes in the walls, a gouged parquet floor or a smashed cabinet. We read the actual policy wordings of two major Singapore insurers to see what is and is not covered once your unit is let out, and where the gap sits between your insurance, your deposit and your tenancy agreement.

What does a Singapore home policy cover when the unit is rented out?

It covers sudden insured events, not tenant behaviour. Typical "defined events" are fire, lightning, explosion, escape of water from burst pipes, theft with forcible entry, and malicious damage by outsiders. Building, renovation and landlord-owned contents are covered for those events whether you live there or rent it out, provided you declare the letting.

MSIG's HomeEasy, for example, lists "malicious act of any person other than you, your household or any other person living in your home" as an insured event. A tenant lives in your home, so a tenant's deliberate damage falls outside that wording. The same policy is priced the same for owner-occupiers and landlords: from S$73.03 a year (Silver) to S$124.81 a year (Gold), GST included, according to MSIG's product page in October 2026.

If you own an HDB flat with an HDB loan, you also carry the compulsory HDB Fire Insurance, now underwritten by Etiqa. It costs between S$1.11 and S$6.68 for a five-year term depending on flat type, and only pays to reinstate internal structures, fixtures and fittings provided by HDB. It does not cover renovations, furniture or anything a tenant breaks.

Is malicious damage by a tenant covered?

Not under the standard wordings we checked. Chubb's myHome Protect II covers malicious damage but expressly excludes damage caused by "tenants, roomers, boarders or paying guests and their visitors", and anyone who entered with your consent. MSIG's wording only covers malicious acts by people who do not live in the home.

Chubb's definition goes further. Even where malicious damage is covered, it does not include tenant neglect, carelessness, poor housekeeping, damage from a tenant's own repairs, damage from failing to control their children, or damage by the tenant's pets. Those are exactly the issues we see most often at handover: scratched floors from furniture, stained grout, pet damage to doors and screens, and DIY wall mounts.

Some insurers sell landlord add-ons or separate landlord plans. If tenant damage is your main worry, ask the insurer in writing whether malicious or accidental damage by the named tenant is covered, what the sub-limit is, and what excess applies. Do not rely on the word "landlord" in the plan name.

What is covered vs not covered: a quick comparison

Scenario	Standard home policy?
Fire in the kitchen damages cabinets and ceiling	Usually yes
Burst pipe floods the unit and the one below	Usually yes
Break-in damages door and landlord's appliances	Usually yes
Tenant deliberately smashes fittings before leaving	No (excluded)
Tenant's dog scratches doors and parquet	No
Nail holes, wall mounts, stains, scuffs	No (deposit issue)
Tenant stops paying rent	No
Normal ageing, faded paint, worn grout	No (landlord's cost)

Based on the Chubb myHome Protect II and MSIG HomeEasy policy wordings. Your own policy schedule and wording decide every claim; check them.

Does loss of rent cover a tenant who stops paying?

No. Loss-of-rent cover in Singapore home policies pays only while the unit is uninhabitable because of an insured event such as a fire or major water leak. MSIG caps it at 10% of the Section 1 sum insured. It is not rent-default insurance, and it will not pay for the weeks the unit sits empty during reinstatement.

There is a second catch in the Chubb wording: loss-of-rent payments are "reduced by deducting the security deposit paid to You". In other words, the insurer expects your deposit to absorb the first slice of lost rent. On a one-year lease with the usual one-month deposit, that can wipe out the first month of the claim.

Does an empty unit between tenants void the cover?

It can, after 60 days. Both the Chubb and MSIG wordings exclude loss or damage while the home is unoccupied for more than 60 consecutive days. A long vacancy for reinstatement, renovation or slow marketing can quietly take your property cover offline.

This matters more than most landlords realise. A typical residential reinstatement takes one to three weeks (see how long reinstatement takes), but if a unit then sits unlet for two more months, a burst pipe in week nine may not be covered. Keep the gap short, have someone check the unit regularly, and tell your insurer if a long vacancy is unavoidable.

What actually protects a landlord against tenant damage?

Three documents: the move-in inventory, the reinstatement clause and the security deposit. Together they let you recover tenant-caused damage without any insurer. If damage exceeds the deposit, the Small Claims Tribunals hear claims up to S$20,000, or S$30,000 if both parties agree in writing.

Inventory with dated photos. A move-in inventory is your evidence of the original condition. Without it, you cannot prove the tenant caused anything.
A clear reinstatement clause. It makes the tenant responsible for returning the unit to its handover condition, minus fair wear and tear.
A deposit sized to the risk. One month per year of lease is the market norm. For a furnished unit, a pet, or a tenant planning alterations, negotiate more upfront.
Written consent for alterations. Approve tenant alterations in writing, with a requirement to remove them at the end.
An itemised reinstatement quote at handover. Deductions backed by a contractor's line-by-line quote are far easier to defend if the tenant disputes them in a deposit dispute.

When is it worth buying a landlord-specific plan?

When your exposure is bigger than one deposit. A dedicated landlord plan makes sense for fully furnished units with expensive fittings, older units with ageing pipes where a leak could displace the tenant for weeks, and landlords who depend on the rent to service a mortgage.

For a bare or partly furnished condo let on a standard lease, a regular home policy (for fire, water and liability) plus a strong deposit and inventory is usually enough. MSIG's HomeEasy, for instance, already includes property owner's liability of up to S$500,000, which covers you if someone is hurt because of a defect in the property you rent out. Before you buy, check four things in the wording: whether tenant damage is covered or excluded, the loss-of-rent cap and trigger, the unoccupied-days limit, and the excess per claim.

Who pays for a leak or fire caused by the tenant?

Your insurer pays you first, then may recover from the tenant. A fire or water leak is an insured event regardless of cause, so the landlord claims on the home policy. If the tenant was negligent, the insurer can pursue them through subrogation, and the tenant's own liability cover may respond.

This is one reason it is worth asking tenants to carry contents and personal liability insurance. If a tenant's unattended washing machine floods the unit below, their policy can pay the neighbour's claim instead of the dispute landing on you. See our guide to ceiling leaks and water seepage in rented condos for how these claims usually play out with the MCST.

Tenant moving out and the damage is beyond fair wear?

We inspect against your move-in inventory, give you an itemised reinstatement quote you can use for deposit deductions, and restore the unit fast so it does not sit empty.

WhatsApp us for a quote →

Policy terms quoted from the Chubb myHome Protect II wording (published 02/2024) and the MSIG HomeEasy wording (HHE012411) and product page, checked 4 October 2026. HDB Fire Insurance premiums from Etiqa's August 2024 appointment notice. Insurance terms change; your own policy schedule and wording decide every claim. This is general information, not insurance or legal advice.

References & further reading

Authoritative Singapore sources for further reading. This guide is general information, not legal advice. Confirm current rules with the relevant authority.