Home Insurance – Home Loan: Things To Know
Although home insurance is not mandatory for getting a home loan, most banks now insist on home insurance. If not home insurance, then personal accident coverage can also work. You can check with your bank regarding the options available.
How to make good use of home insurance:
- Try to take up a separate home insurance. While banks give you the option for a personal accident cover or life insurance policy, you should not opt for it unless your family is adequately covered through another policy. After all, the purpose of life insurance or personal accident cover is to help your family in case of any eventuality.
- Pay a one-time premium for home insurance. You end up paying more if you decide to club it with your home loan EMI.
- A few banks offer free insurance along with your home loan. Carry out the due diligence and see if you can opt for it and the conditions under which it is available to you.
- Some home insurance covers provide accident coverage, critical illness, damage to home because of theft or burglary etc. These are not typical features of home insurance. Consider these plans and choose the best option.
- Home insurance is not mandatory to get your loan sanctioned though banks can sometimes insist on it.