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Is Home Insurance mandatory with Home loan

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Is Home Insurance mandatory with Home loan

Last updated: January 25 2014
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  • Is Home Insurance mandatory with Home loan

    Is home loan manatory with home loan. Actually i have applied for a loan from IDBI bank, before approval the loan they are assisting me to take home insurance. they are saying it's mandatory. IS IT SO?
  • #2

    #2

    Re : Is Home Insurance mandatory with Home loan

    Originally posted by ashok4814 View Post
    Is home loan manatory with home loan. Actually i have applied for a loan from IDBI bank, before approval the loan they are assisting me to take home insurance. they are saying it's mandatory. IS IT SO?
    The same happened to me. I think they make it a pre-condition for sanction if they think your current insurance/assets will not cover for the loan.
    I dont mind it as I was planning to take it anyway.

    Comment

    • #3

      #3

      Re : Is Home Insurance mandatory with Home loan

      Originally posted by mobilizedport View Post
      The same happened to me. I think they make it a pre-condition for sanction if they think your current insurance/assets will not cover for the loan.
      I dont mind it as I was planning to take it anyway.
      I have taken loan from HDFC..they havent put any pre-condition for insurance though I am planning to take one..

      Comment

      • #4

        #4

        Re : Is Home Insurance mandatory with Home loan

        Originally posted by Ranjit.jha View Post
        I have taken loan from HDFC..they havent put any pre-condition for insurance though I am planning to take one..


        what is the rate u r getting with HDFC ?

        Comment

        • #5

          #5

          Re : Is Home Insurance mandatory with Home loan

          No this is not at all mandatory however it may be a good idea to take this once you plan to move into the flat.
          Home insurance charges are from Rs.70 to Rs.150/- per lac
          MM

          Comment

          • #6

            #6

            Re : Is Home Insurance mandatory with Home loan

            Originally posted by ashok4814 View Post
            Is home loan manatory with home loan. Actually i have applied for a loan from IDBI bank, before approval the loan they are assisting me to take home insurance. they are saying it's mandatory. IS IT SO?
            I was also insisted by HDFC to take home insurance. But I tols them I am not goind to take it, as I was already had a life insurance of 60 lacs. Under he home insurance you get a cover for property damage against Flood, earthquake, etc. But in pune there is no history of earthquke and flood. Plus they were adding the one time premium to my home laon account, which means that I ahve to pay the interest on the premium comp[onent for 20 yrs, as my home loan term is 240 months. The cover was only for 5 years. In this ciritical illness is also covered which are very rare to happen atleast in my case. So you think from all angles and then take a decision. These bank people some times prepare some stupid products and try to sell you.

            thankyou.

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            • #7

              #7

              Re : Is Home Insurance mandatory with Home loan

              Originally posted by mobilizedport View Post
              The same happened to me. I think they make it a pre-condition for sanction if they think your current insurance/assets will not cover for the loan.
              I dont mind it as I was planning to take it anyway.
              you are right. but i have already taken the term policy..that's why i don't want to take the home insurance.

              Comment

              • #8

                #8

                Re : Is Home Insurance mandatory with Home loan

                Originally posted by ashok4814 View Post
                you are right. but i have already taken the term policy..that's why i don't want to take the home insurance.
                Is it better to take Term Policy rather that Home insurance??

                Comment

                • #9

                  #9

                  Re : Is Home Insurance mandatory with Home loan

                  There is fundamental difference between home insurance and owners insurance.
                  Home insurance is for your under construction home and once complete for the structure of your home.
                  Other insurance is for you - since you have taken the loan from the bank and if something happens to you - the bank gets rest of it's money from the insurance and your nominee gets the home.
                  Both these are expensive if you take from the bank.

                  IMHO - there is no real need for home insurance. It really doesn't protect you from anything... For your loan insurance - better take term insurance policy - will work out cheaper too...
                  again - do you homework before you take the leap.

                  Comment

                  • #10

                    #10

                    Re : Is Home Insurance mandatory with Home loan

                    Originally posted by sonirohit View Post
                    There is fundamental difference between home insurance and owners insurance.
                    Home insurance is for your under construction home and once complete for the structure of your home.
                    Other insurance is for you - since you have taken the loan from the bank and if something happens to you - the bank gets rest of it's money from the insurance and your nominee gets the home.
                    Both these are expensive if you take from the bank.

                    IMHO - there is no real need for home insurance. It really doesn't protect you from anything... For your loan insurance - better take term insurance policy - will work out cheaper too...
                    again - do you homework before you take the leap.
                    Could you suggest the best term policy available in the market ??

                    Comment

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