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Mortgage insurance is an insurance to insure against the death of a co-owner in which the beneficiary is the other person. For example, if the loan is $1,000,000 in which each person shares half the repayment burden. In this case, each person buys $500,000 of insurance. So that when a partner dies, the other partner gets $500,000 towards payment of the house.
Mortgage Reducing Term Assurance
There is also Mortgage Reducing Term Assurance (MRTA). When the loan is being repaid, the principle reduces, therefore the insured amount is reduced and hence also the premiums.
Home Insurance: Content Insurance
Home Content insurance pays you in case the building is destroyed and your contents are lost or destroyed.
Home Insurance: Building Insurance
Building insurance is usually required by the bank on the borrower and usually paid for by the borrower. This is to protect the bank's collateral in the case where the building is destroyed. This money will be paid to the bank. The insured sum required is the replacement cost of the building. For example your condominium is $1,000,000. If the evaluated building replacement cost is $400,000, this means that $600,000 is the land cost and $400,000 is the building cost.
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