property insurance for home loan

RBI or the insurance regulator do not require you to purchase insurance in order to obtain a loan.

In addition, financial institutions are prohibited from compelling customers to purchase insurance exclusively from the companies they recommend.

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Nevertheless, when extending a home loan, banks will typically request proof of life and property insurance as standard operating procedure.

This is absolutely necessary in order to safeguard not only their financial interest in the mortgaged property but also the borrower's life.

A number of banks offer customers an escape from paying a premium for insurance, which would otherwise be subject to a higher interest rate.

This is to compensate them for the risk of loss that they would bear in the event that the borrower passed away or that the house was damaged.

On the other hand, I strongly suggest that you purchase property insurance because doing so is in your best monetary interest.

 Home insurance is inexpensive and will compensate you if your property is damaged by fire or natural disaster.

You are not required to buy this insurance from the bank; rather, you have the option of purchasing it from a specific insurance provider of your choosing.

You are not required to buy this insurance from the bank; rather, you have the option of purchasing it from a specific insurance provider of your choosing.

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