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Home Insurance vs Home Loan Insurance: What You Need to Know

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Home is where you begin and end your day. It is the most vital space in everyone’s life that must be protected. Homeowners have two efficient insurance policy options to secure their space and finances: home insurance and home loan insurance. People often confuse the two, so let’s understand them closely.

Home Insurance

Every structure is susceptible to natural disasters and unexpected damage. Likewise, your house can encounter minor or significant damage for any reason. Floods, fires, earthquakes, theft, burglary, and malicious activities are possible causes. In situations like these, home insurance steps in as a financial pillar. It covers the losses incurred during an unfortunate event.

Moreover, home insurance covers both content damage and structural damage. So you don't have to buy TV insurance after purchasing home insurance.

Some key benefits of home insurance are:

• Wholesome protection

• Affordable premiums

• Flexible choice of tenures

Home Loan Insurance

If you wish to own a house but don’t have sufficient savings, home loan insurance is for you. This insurance policy guarantees loan repayment when the borrower fails to pay the monthly instalments. It does not include any electronic equipment insurance or cover any content damage in the house. Some insurers provide cover if the owner suffers from critical illness, disability, or sudden unemployment. Also, the conditions for covering home loans might vary. Check the policy thoroughly before finalising your insurer.

You must note that home loan insurance is only available when you have a home loan. Also, the premiums are comparatively higher than home insurance premiums.

Some key benefits of home loan insurance are:

• Prevents home loss

• Potential loan benefits

• Combined single premium payment

Conclusion

Home and home loan insurance are two important policies every homeowner should consider. They protect you from unexpected losses and provide peace of mind. However, although home and home loan insurance have many benefits, they also have certain conditions. The insurer provides coverage only when your situation aligns with their terms and conditions. So, if you plan to buy a house, check both policies today. Read the terms and conditions thoroughly before concluding anything.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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