FNB HOME LOANS EXPLOIT HOME OWNERS (INFLATED REPLACEMENT VALUES)

Good day.

In 2017 I purchased my first property in the East Rand, Gauteng at market value. The purchase price was 1.150mil. With my bond agreement the condition indicated that I must insure the property (building insurance) for 5.7 million. That is close to 5 times the purchase price of the property. After several attempts of contacting them via phone in and e-mail, no one could give me proper reasoning why I should insure at such such a high amount. Not forgetting the market price for the property was 1.15mil. Over the past 3 years I still cant resolve the issue. Every time I call in they informed me that it is back office department and I cant speak to anyone from there.

I'm in he process of purchasing my second property in Johannesburg. The property is bigger at a purchase price of 2 million. However the replacement value that I have to insure with is only 2.3 million.

In 2018 I had FNB do an evaluation on the property where they confirmed the market value of the property. FNB has exploited me for paying an inflated amount for insurance and have clearly shown their unwillingness to resolve he issue.