Is Building Insurance same as “Fire Insurance”?
Yes, Buildings Insurance is also commonly known as Fire Insurance. It covers a property's structure if there is damage caused by events including fire, typhoons/windstorms, and explosions. Many homebuyers looking to take out a mortgage need to buy fire insurance, as it is required by banks before they will approve a home loan.
Can I choose the effective date for my policy?
How much does a fire insurance policy cost?
Are premiums higher for certain property types?
OneDegree Fire Insurance premiums are fixed at 0.03% of the Sum Insured. The rate is applicable to residential properties of all types and all ages. Get a quote for your property here.
When purchasing fire insurance from a bank, the premium rate may depend on your property's type and valuation. For example, village houses and older buildings will tend to cost more to insure than private housing estates and newer buildings. The rates offered by banks generally range from 0.08% to 0.15%.
How do I determine the Sum Insured for my policy?
You can choose one of the following to be your policy's Sum Insured: 1) Your original mortgage loan value; 2) the cost of your property reinstatement; 3) your current mortgage loan value.
If you choose your Sum Insured to be the cost of rebuilding your property, a property valuation must be conducted annually and the Sum Insured may change year to year depending on the valuation.
Many homeowners choose a Sum Insured equal to their current mortgage loan value. However, a mortgage loan's value drops over time, which means the Sum Insured will also decrease.