Home Insurance for Home Loan starting ₹530/year*

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Home Insurance for Home Loan

Difference Between Home Insurance and Home Loan Insurance

When we talk about home insurance and home loan insurance, there are bound to be certain differences between the two. Let us take a look at them in the table below:

Home insurance

Home loan insurance

Home insurance pays for the loss or damage incurred by the house due to mishaps like fire, earthquakes, flood, theft etc.

Home loan insurance comes in handy as the insurer will settle the outstanding home loan amount with the lender in case the policyholder faces unforeseen situations.

Premium payable for availing a home insurance policy is low.

For Home Loan insurance, the premium payable is high.

Home insurance policy can be bought irrespective of you having taken a home loan.

Home loan insurance can be purchased only if you have availed yourself of a home loan.

Down payment of the house reduces because of home loan insurance.

There is no impact on down payment in the case of home insurance.

Factors to Consider for Buying Home Insurance for Home Loan

While buying a home insurance policy is recommended, there are certain factors that need to be considered before proceeding. Let us take a look at them:

Coverage

You need to look at the coverage size offered by the insurer before buying home insurance for a home Loan. This is important as most insurers offer diminishing coverage. Good coverage will ensure that you are protected against any eventuality.

Payable Premium

The premium which you will be paying also needs to be considered. Given that you are already paying a large sum as EMI for the home loan and there are other expenses to take care of, the premium should not burn a hole in your pocket.

Add-ons

The add-on coverage offered by the insurer is another thing that needs to be evaluated. It will ensure that you get access to more benefits on buying the property insurance policy.

FAQs about Home Insurance for Home Loan in India