Tuesday, March 23, 2010

Fire Insurance for Strata-Titled Properties

A few years ago I took out a loan to purchase a property. The loan agent also got me to get a fire insurance claiming that it was compulsory to get the loan. I had to pay over RM483/year for this insurance. At the same time, the condo that I bought made it compulsory for me to pay for their fire insurance. So, I have 2 insurance policies.
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Under the strata title act, it is mandatory for the management corporation of strata-titled properties to buy fire insurance. The management corporation will then charge the owners their portion of the premium. So, since I also got a fire insurance together with my loan, it seems there is a case of double insurance.
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I have just learnt that if the loan is obtained from any of the banks under the supervision of Bank Negara, there is no requirement to buy another insurance policy. These banks would accept the insurance policy purchased by the management corporation. So, it seems I was misled.
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Apparently I can get a refund for the pro-rata premium for the remaining period of the insurance. I am now applying for this...

5 comments:

Anonymous said...

Hi, sorry if i posted this comment in here. I asked my contractor recently whether they can renovate house (like what you did in pangsapuri) at rm20k inclusive furniture. The contractor told me impossible, dun even think about it. He even told me at least rm50k huh!

sinleong said...

you will probably be able to understand why if your question is not answered.

Anonymous said...

But when i posted the comment in the relevant posted you also never answer...so i have no choice but to posted my question here.Fine, will never visit your blog again.

cmy said...

I got the same predicament too regarding double insurance for my unit. So I wrote to the banker's insurance company to cancel the policy.

Unknown said...

Ask MC for Certificate of Insurance and pass it to the banker so that banker wont effect another policy...


tengster