Is house insurance a requirement?

[james00112233]

When availing of a housing loan thru bank, is house insurance a requirement?
If yes, if your term is for 15yrs, meaning you have to pay an insurance for 15yrs?

[CVT]

Normally, nire-require iyan ng creditor to be sure that they are protected in any eventuality.

Iyong iba nga, pinapakuha ng term insurance ang nangutang, just in case....

16.4K:bond:

[vinj]

Fire and lightning ang required usually. Then you instruct the insurer that it's loaned to the bank as the insurance has to be duly assigned. You renew that every year and it's not that costly AFAIK.

Just like comprehensive insurance requirements on a car bought under financing.

[james00112233]

yung insurance na yun eh pwede bang kumuha sa ibang company eventhough nag-loan ka sa bank? or kailangan sa bank kung saan ka nag-loan dun ka kukuha ng insurance yearly?

[shadow]

Tama! Parang kotse kailangan nila ng compre insurance for the duration of the loan, pag bahain yun lugar pasama mo ba 'acts of god'.

Mura lang yan, Ang alam kong mahal yun MRI.


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[shadow]

Tama! You need an insurance for the duration of the loan, parang sa kotse. Pag bahain yun lugar padagdag ka ng 'acts of god' mura lang yan Ang alam kong mahal eh yun MRI


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[Just]

usually kung san bank ka nag loan dun din insurance mo...

[dreamur]

I think you are referring to the mortgage redemption insurance (mri) which is different from fire/lightning. This is to protect the bank (and your family) in case something bad happens to you. You have to pay this every year and in most cases your bank offers the best rate because they are protecting their interest.

[james00112233]

Mortgage Redemption Insurance (MRI) is a life insurance policy taken by a mortgagor to repay the balance on a mortgage loan if he dies before its full repayment.
Computed as follows:
MRI Premium = Loan Amount / 1000 x 4.43
i.e. for 1M loan the premium is P4,443.00 per annum

Is this the only requirement by the bank and not the fire/lightning?

[swankydewd]

Is this the only requirement by the bank and not the fire/lightning?

When I got housing loan thru a bank, they required me to have an MRI and Fire Insurance.

The MRI is like a life insurance but the benefactor is the bank. During your payment term, just in case something happens to you, this MRI will cover the remaining balance of your loan, leaving your beneficiaries with the paid property and not an unpaid mortgage.

The fire insurance is for... fire =). Would you still be paying for something that you can't use? Here's a scenario, lets say a fire broke out and the property was totally engulfed, you would rather spend your money to more immediate things like temporary shelter, food and others as compared to paying your mortgage, right?

Also, in my bank, i'm not obliged to get the insurances from them. I can get it from other institutions as long as i give them the required docs. But for convenience's sake, i got it from their sister company.

[_Qwerty_]

di naman masyadong malaki to.. required talaga yang MRI and Fire Insurance kahit sa pag-ibig..

[vinj]

Yep, it's required since you have to protect the property mortgaged. Hindi naman kamahalan as compared to car insurance from what i know.