hi guy,

Would like to ask anyone knew that the UOB bank require mortgage loan owner to purchase the houseowner insurance policy over the basic fire insurance policy?

Recently i have been inform by the UOB branch in-charge person to purchase a new houseowner insurance as its compulsory. but every year loan i also purchase the basic house fire insurance.

anyone have experience about this and where can we complain this matter ya?




Attached File(s)
 From_UOB___Houseowner_insurance.pdf ( 1.42mb ) Number of downloads: 9

Yes, normal. Bank normally demand homeowner insurance for their loan.

Your loan offer letter should have some clauses/appendix pages that specify you need homeowner insurance while you're still owing the loan. Read through the fine print carefully.

Homeowner insurance covers much more than fire insurance. Fire usually only cover damage caused by fires, with maybe add-on coverage that requires additional payment. Homeowner insurance covers damage caused by burst pipes, landslip, earthquakes, riots etc.

As the house is under a loan it's technically an asset under bank, they want to ensure insurance coverage is enough to protect the home in the event of severe damage which may cause you to be unable to pay for the home loan because financial cost of damages is too high.

This post has been edited by DragonReine: Nov 10 2021, 07:00 PM

What is the difference on premium ?

Each bank have their own guideline. Mine have to include RSMD.