Hi, I just bought a landed house. is the fire insurance compulsory ?

This post has been edited by Faint: Jul 29 2021, 07:35 AM

Even if you don't have a loan, I'd say yes. Get a Islamic Takaful one and you get back money for not having claims.

Insurance is about whether you can afford to take the risk. Is no right or wrong.

There are people who bought new cars in cash and buy just the basic third party to meet JPJ requirement for road tax renewal. Also there are people who dont have or believe in life or medical policy.

But if there is a loan, banks will make it compulsory.

Do remember, you dont buy the fire policy based on purchase price because in the event of fire, insurance will only pay based on reinstatement or rebuilding cost. Land is always excluded.

If your house is 1mil, the reinstatement cost in the event of fire for a totally burnt house maybe 400k. You need to find out what is the current reinstatement cost within a year of purchase.

Buying 1mil doesnt mean you get 1 mil. In addition, the premium will be higher.

Other than basic fire policy, banks normally required to include riot, strike and malicious damage extension.

Dont under insured but no harm if slightly higher.

This post has been edited by mini orchard: Jul 29 2021, 09:53 AM

can I ask how to claim fire insurance from bank on mortgage loans.

bank ask me to get the

Please be informed that, it is our procedure to ensure below details stated in the insurance certificate for cancellation & refund (if any).

1. “Malayan Banking Berhad/Maybank Islamic Berhad”, are stated as mortgagee or Financial Institutions listing from the Master Fire policy.

2. Kindly liaise with the JMB or insurance company to request individual certificate or subcertificate for our further action.

as far as I know, JMB only provide building coverage in 1 master policy and will not issue subcertificate to individual.

do you face this issue ?