Home Insurance and Home Loan Insurance: Know the differences


Insurance policies allow you to secure your future liabilities to ensure a safe passage through unfortunate or unforeseen events of life. Individuals are advised to have insurance policies covering valuable items and aspects of life such as medical insurance, life insurance, car insurance, and home insurance among others.

Buying a home is a huge investment and one of the biggest decisions for many individuals. Most people opt for a home loan rather than paying the whole amount upfront as it puts them in a comfortable situation financially and helps plan the future.

While most people invest in a home insurance, home loan insurance is often neglected. The two are very different insurances and each has its own importance. Whether you purchase a 2 bhk flat in Goregaon East or a villa in Kolbad road, getting insurance should be your priority. We have listed the differences between the two and explained why investing in both of these is a wise step for a secure future.

What is Home Insurance?

Home insurance policies protect the customers from any event, man-made or natural calamities that might cause structural damage to the property. You buy a home insurance to cover the replacement cost of your home. The terms of the coverage vary according to the kind of insurance you purchase. It also covers the cost of maintenance such as replacing damaged parts, wall fixtures, garages etc.

It is important to note that home insurance policies cover only limited damages. Customers should make it a point to go through the terms and conditions in detail before signing up for any policy. Tailor-made plans are also available that help you customise the policy as per your requirements.


What is Home Loan Insurance?

A home loan insurance guarantees protection in situations where the borrower is not able to repay the loan due to some unforeseen circumstances. This insurance allows the buyers to get a large sum of money while keeping the upfront payment as low as possible. In some cases, home loan insurances are willing to lend more than 80% of the property’s value while covering the risk for financial institutions.

By investing in a home loan protection plan, you ensure that the bank does not repossess your house and sell it to cover the losses.

You can also claim tax deductions under Section 80C of the Income Tax Act when you pay the home loan insurance premium. This only stands true in case you haven’t taken loan from the bank to pay the premium.

Choose the policy that matches your requirements and covers the possible damages that you might incur. If you are looking to buy a house, check out the 3 bhk and 2 bhk flats in Thane West near station by The Dynamix Group. Designed to cater to the needs of modern lifestyle, the houses are available at extremely affordable prices.

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