For many buildings the question does not arise at all - the cost of fire insurance for an apartment is included in the monthly management fees and you have to pay it. However, some buildings do not have block insurance and it is up to the individual owners to arrange their own fire insurance if they wish. If the property is mortgaged, the bank will insist on coverage at least equal to the amount of the outstanding insurance policy (and will steer you in the direction of their own insurance company).
One of my properties has no block insurance so the bank required me to take out a fire insurance policy equal to the amount of the mortgage loan. With the last mortgage payment falling due at the end of this month, I have been debating whether or not to continue to pay for fire insurance going forward.
The amount is not large but it is still an expense that I do not believe confers any real value. The possibility of a fire sufficiently large to damage my flat in an adequately maintained building is, in my view, remote. Accordingly, I have cancelled the policy.
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