POSTED BY December 9, 2014 6:35 pm ONE COMMENTON
I have specific question on Property Insurance.
My property is located in Nashik.
Market value – 52 lakh. Loan Amt – 40 Lakh. Loan Tenure – 25 Yrs.
Construction Cost – 1545 sq ft X 2000/- = 31 Lakh approx.
The quotation (one time premium) I received from SBI General Insurance – 34,000/- (for 52 Lakh for 25 Yrs.) (It includes Fire and Earthquake). I have questioned many ways but they are not agreeing to consider Construction cost according to them for Flat they consider Market Value.
I have read in some of the Q&A at JagoInvestor that, Construction Cost should be sufficient for Property Insurance.
I am confused but don’t know how to fight to convince bank to either consider Construction Cost or Liability Cost than Market Value. Any help would be appreciated.
I also checked – https://www.sbi.co.in/webfiles/uploads/files/1327043528466_APPROVED_MITC_VER6_APPFORM.pdf
where they mentioned, it should be at market value.
Insurance: The house/flat shall be insured comprehensively for the market value covering fire, flood, Earthquake etc. in the joint names of the Bank and the borrower. Cost of the same shall be borne by the borrower.