Yes. Banks require building insurance on a mortgaged home. Contents insurance for your belongings is optional.
- Building insurance: required by the bank; covers the structure (walls, roof, fixed fittings). Usually 0.03%–0.12% of the property value a year through the bank's policy.
- Contents insurance: optional; covers furniture, electronics and personal items.
Apartments may also be covered by the building's master policy. Check whether your policy covers flood and storm damage, as cover varies.
