anyone can share which company offers the best fire insurance package?
also, what is the norm for the coverage? full value of the house, 50% etc?
You are taking about fire insurance or home content insurance?
HDB owners are insured under HDB fire insurance.
Condo owners are insured under MCST policy.
If you have bank loan, the bank will force you to buy from their tie-up insurer so you won't have a choice.
For condo.. apart from the insurance forced by the bank... is it necessary to buy another home insurance ?
Permanent fixtures refer to the floor/wall tiles, kitchen /all cabinets ? False ceiling Wiring etc .. in short all the fittings tat developer provided?I would say YES although it's still up to individuals. The fire insurance forced by the bank is Mortgagee Interest Policy which means the beneficiary is the bank not you. It usually covers the building structures, walls and permanent fixtures only with no or very little protection on your home contents and personal belongings.
You are taking about fire insurance or home content insurance?
HDB owners are insured under HDB fire insurance.
Condo owners are insured under MCST policy.
If you have bank loan, the bank will force you to buy from their tie-up insurer so you won't have a choice.
Permanent fixtures refer to the floor/wall tiles, kitchen /all cabinets ? False ceiling Wiring etc .. in short all the fittings tat developer provided?
the condo one with bank loan, forced to buy by bank
but noticed the sum insured is <<<< valuation of the unit - almost 1/3 only. is this normal or maybe the bank trying to help me save on premium?
eg condo valuation 2.5m, sum insured for fire insurance only 1m
i am worried if bring it up with them, they may jack up the sum insured and i have to pay much higher premiums.
For condo owners, the fire insurance sum assured is based on housing loan amount or the building reinstatement value, whichever is lower. Reinstatement value is generally referring to the cost of construction. It's much lower than the market value because it's excluding the cost of land, price premium due to location and etc. The reinstatement value is determined by the bank's appointed valuer when you took the loan. The value is written on the valuation report submitted to the bank which is not shared with customer.
As what I mentioned previously, this fire insurance is a mortgagee interest policy and beneficiary is the bank. The bank forced you to pay this insurance to cover their own financial interest only, that's exactly why the sum assured is based on housing loan amount or the building reinstatement value, whichever is lower. Assuming you bought an expensive property worth 2.5m, reinstatement value is 1m, but only take a small loan of 300K. The bank will only buy a fire insurance with 300K sum assured. In the event of fire and your house is total damaged, instead of helping you to build back the house, the bank will just claim the 300K from the insurer to recover the loan, then walk away.
As what I know, the only bank in Singapore doesn't force condo owners to buy fire insurance is OCBC.
For condo owners, the fire insurance sum assured is based on housing loan amount or the building reinstatement value, whichever is lower. Reinstatement value is generally referring to the cost of construction. It's much lower than the market value because it's excluding the cost of land, price premium due to location and etc. The reinstatement value is determined by the bank's appointed valuer when you took the loan. The value is written on the valuation report submitted to the bank which is not shared with customer.
As what I mentioned previously, this fire insurance is a mortgagee interest policy and beneficiary is the bank. The bank forced you to pay this insurance to cover their own financial interest only, that's exactly why the sum assured is based on housing loan amount or the building reinstatement value, whichever is lower. Assuming you bought an expensive property worth 2.5m, reinstatement value is 1m, but only take a small loan of 300K. The bank will only buy a fire insurance with 300K sum assured. In the event of fire and your house is total damaged, instead of helping you to build back the house, the bank will just claim the 300K from the insurer to recover the loan, then walk away.
As what I know, the only bank in Singapore doesn't force condo owners to buy fire insurance is OCBC.
thanks for your very informative post....guess that few hundred $ annual premium for fire insurance has to be factored as part of the housing loan costs vs ocbc
hmmm in that case, wonder whether its normal for condo owners to take up a 2nd fire insurance policy on their own to cover themselves and in the event fire did happen, can both the bank and owner claim on their respective fire insurance policies?
If bank claim the 300k to recover the loan.. tat would mean our loan is reduced. Hence owner is actually the direct beneficiary instead of the bank?
How much do you guys pay for the bank fire insurance?
Hello all - urgent..
I'm bringing up an old thread.
I have a condo rented out. My bank mortgage loan did not force me to buy a fire insurance.
Can some experts advice on the following?
1. As a owner do I require to buy fire insurance as I understand condos are insured under MCST policy.
2. If case of fire, as a owner I would like to buy minimum insurance good enouhg to restore the interior of the house (not personal contents) like painting, wiring, furniture, equipments, aircon, etc - say for a value of $100k. What fire insurance should I buy? Can somebody recommend one?
Thank you.