Housing Loan & Fire Insurance

[leo_aries 0]

Hi guys, I heard that if I were to take HDB Loan , I will need to have a fire insurance from HDB appointed insurance company call, Etiqa. But if I were to take Bank Loan, do i still need to have a fire insurance? Seem Etiqa's insurance preimum is pretty low, can pple who take bank loan take up their fire insurance?

anyone familiar with fire insurance?

[waileong 0]

Hi guys, I heard that if I were to take HDB Loan , I will need to have a fire insurance from HDB appointed insurance company call, Etiqa. But if I were to take Bank Loan, do i still need to have a fire insurance? Seem Etiqa's insurance preimum is pretty low, can pple who take bank loan take up their fire insurance?

anyone familiar with fire insurance?

Most likely you'll have to take up the fire insurance from the bank's appointed insurer, esp. if you're getting a good rate.

But if the bank doesn't have such restriction, then you can take up anyone you like. I doubt you'll get the same rate as HDB gets from Etiqa though.

[therat 18]

for bank loan, some bank give 1 yr free fire insurance and it is auto renew.

If u don't want, remember to inform the fire insurance company, don't renew it.

[jtec14 0]

Oh so HDB changed the fire insurer...

Anyway for bank loan, if you are not taking the fire insurance provided by them, there will be administrative charge usually ~$100 for 3rd party fire insurer. Noted you will have to ensure the coverage amt is sufficient as deem by the bank and you need to ask your 3rd party fire insurer to add in additional clauses (e.g you do not have the authority to cancel the policy without approval from the bank) for your policy.

Check out with your bank first if you are taking bank loan on coverage/administrative charges and the additional clauses required before proceeding.