Compulsory Home Insurance with Home Loans
Today, its almost mandatory for home loan customers to take home insurance as the HFC do not want to be without a risk cover for the amount they have given as home loan.
ICICI home FInance has a tie up with ICICI Lombard and HSBC currently has a tie up with TATA AIG for such policies.
In fact, the trend is to have a single premium policy for the insurer's life to the extent of covering the amount of loan financed and annual premium on the home insurance. The amount of single premium is added to the loan component and that effectively gets financed and you pay that amount as part of EMI rather than one large lumpsum amount
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