Insurance on mortage loan?

[Tamas Vastag]

Hello,

Currently we are signing a contract for a purchase of an industrial building.

The bank who is financing it, probably only because I am a newbie in the area, trying to sign with me an insurance on the mortgage loan.

Is this correct from the bank?

Should I sign it and pay for this for the insurance company?

Basically the property is insecured by the mortgage loan

Why another insurance on the loan? Crazy...

Thank you for the advise and your opinion.

Tamas from Hungary