why bank still request borrower to send the insurance certificate since it is mandatory to MC to insure the whole building ? becos bank don't know the property is strata or landed?

what if the individual strata unit did not send the cert to bank? bank will buy another insurance separately on behalf of borrower and charge it to loan account??



I fully understand if bank require borrower to insure if the prop is landed.
i stop buying the insurance once i cleared my loan.

the banks are kiasu wan - they still want to be sure 200% the property is insured - that is why they insist on getting a copy of the fire insurance either from the owner or the management of the property.

so I personally ensure I get the fire insurance from the management and send to the bank otherwise the bank will take out a separate fire insurance and charge the premium to your loan account!

so owner end up paying for 2 premiums buta buta..

any banker can verify?

Not a banker, but I can confirm it. HSBC told me the same: provide proof of condo insurance, else the bank will automatically apply for fire insurance and bill you for it. The point is, till you settle your loan, the unit belongs to the bank, not you, and the bank won't take any risk: the unit has to be insured. Every year, have to show the bank evidence of condo fire insurance.

Yea.
And usually management only will provide the certificate (with owner's name) if you paid your maintenance fees and such.

how we know the bank have received it and did not charge us the insurance premiums again?
I have studied all my loan statements but none of them charged me any insurance fee, I have never sent insurance to them

I usually email to them and get them to acknowledge receipt to keep as proof..
sometimes I personally deliver summore..

should be reflected in your statements if they charge insurance premium..if you are sure they did not charge then good for you..

hsbsc is quite anal when it comes to this matter..cimb too..

mine is UOB, Hong Leong, Maybank, Alliance. so far the insurance fee are not shown in my statements

Bank just wants to protect their interest.
Bank gave loan to borrower, and caveat the property as collateral.
So if borrow unable to pay, bank still have property that can be auctioned and recoup the loan money.

While if the property is damaged due to fire, bank still have fire insurance to cover upon it.

Imagine, if the property is damaged due to fire, borrower doesn't want to pay the outstanding loan, by then bank left with nothing already.

You cannot discard there may be MC that is ignorance to buy insurance for the building/property, so bank want to ensure it is covered to protect their interest as well.

Also, MC will not able to buy insurance, if unit owner doesn't pay up their portion.
We have many cases the unit owner doesn't pay out their outstanding monthly maintenance fee as well result in building is poorly maintained.
There may be also potential case no proper MC is formed as well.

I went to see a banker today regarding an under con property which is currently in foundation stage. I wish to cancel the fire policy charged by the bank as I dont want to have 2 fire policies. But the banker said i need to obtain a copy of fire policy from the developer, despite him noticing a clause in s&p that the developer will cover the fire policy. What should i do? Tq in advance

Request a fire insurance policy copy then, they should able to produce one for you, if they indeed bought the master fire insurance for all.
It is quite a standard procedure.

If I purchased a subsale and obtained a loan, will the bank require that I buy a fire insurance at this point?
As the S&P has yet to be executed, I do not have access to the JMC yet (neither would the policy show my name at this point), how do I go about it if the bank requires for this?

usually bank wont ask now. they will ask before loan get to be released, even if it doesn't show ur name, it shows the postal address of the property which is sufficient for the bank.