Home insurance and home loan insurance cover total risk compliances of different stages. Home insurance covers the material damage, such as building collapse, rain, fire, earthquake, flood, or any other malicious damage. It can be extended to cover burglary and any other damages to the household items too. Home insurance will cost about Rs. 15,000 at a minimum per year to Rs. 1 crore to the maximum.
Home loan insurance covers the risk of death before settling off the loan amount or the equated monthly installments calculated against the home loan, click for source. Hence, when such unfortunate situation happens, the insurer will pay the outstanding loan amount to the loan provider, wherein the nominees can be able to retain the house. The cost of home insurance loan depends upon the applicant’s age and loan amount. On an average figure, the minimum loan insurance amount will be Rs. 1 crore loan over 15 years as a one-time premium for Rs. 3 to 4 lakhs.
Home loan insurance in India
Home loan insurance is quite important wherein it helps to ensure the family that there will be a valid asset even if any misfortune happens. Home insurance comes under meager priority, when compared to home loan insurance.
Which home loan insurance is best in India?
It is the very best question to leave the applicant to sit with loads of questions and researches to find the best one. As for the current scenario, appending below is the list of best-performing home loan insurance providers in India.
- ICICI Prulife
- ICICI Lombard Home Insurance
- HDFC Ergo Home Insurance
- Tata AIG Home Insurance
- IFFCO Tokyo General Insurance Co. Ltd
- Bajaj Allianz Home Insurance
How easy can one get approval for home insurance?
Once after the application is submitted, the lender needs at a minimum of 4 hours for their end set of process to be completed and within 24 hours of that day (at a minimum, in some cases the process takes two business days).
The lender actually doesn’t waste your time in making to wait for the longer time period, hence they follow a planned and streamlined process of easy steps allowing the individuals to fill in the application process in few minutes. Wherein all the process are absolutely automated through online, thus sending out the result in few minutes. However, the money transaction will happen through cheque and few lenders follow online transactions.
Why is Home loan insurance important for lenders?
In general, lenders do not want their loan history go bad, wherein they want to safeguard their money. Hence, to avoid home loan insurance turning into bad debt, lenders seek for home insurance. In the case of applicant’s or the borrower’s demise, the lender will lose money in the situation of only the borrower was the earning bird of his/her family.