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