What is Home Insurance for Home Loan?

Home Insurance for Home loan is a long-term property insurance policy where the insurer offers coverage for the house and its contents. Digit’s home insurance policy ensures that the homeowner is covered financially for any damage to the house due to factors like fire, flood, storms, etc.

Why is it Necessary to Have a Home Insurance Policy?

It is necessary to have home insurance as it comes in handy in case there is any damage to your house or its contents. The policy ensures that you are financially covered for the losses incurred due to the damage caused. In addition to that, it makes sure that the home loan does not turn into a bad debt for the lender.

Is it Mandatory to Buy Home Insurance when taking a Home Loan?

Buying a home insurance policy is not mandatory. However, having one is advisable as it is in your financial interest. By paying a minimum premium you can protect your property and its content against any damage given that you have already invested a large sum of money to purchase your dream house.

How is it Beneficial to Have Home Insurance when taking a Home Loan?

Availing a home loan is a big commitment as a major amount from your earnings goes towards repaying the loan for a long period of time. Given that, a home insurance policy can come in handy for the following reasons - 

• It protects your family and dependents from debt as the insurer will cover the property.

• You can choose add-on covers that protect against permanent disability, severe illness or unexpected job loss.