Insurance cover is very essential nowadays. Currently, everything is covered under insurance. However, the most popular forms of insurance are the life insurance and health insurance.
Many people buy only these two forms of insurance.
How many does ever know that there is an insurance policy for homes and home loan?
If you know the differences between home insurance and home loan insurance, the prospective buyers can choose suitable insurance scheme to get coverage. Home insurance covers thefts, whereas the home loan insurance is beneficial to meet calamities like death of the insurer or loss of income due to job loss leading to inability of the family to pay the EMI.
What is home insurance?
The home insurance pertains to the physical structure of the home and protects it from fire accidents, theft, cyclones and earth quakes and such other unimaginable calamities.
Such policy also gets redemption from damage caused to the home due to acts of terrorism. The policy covers the loss of individual goods and damaged or lost property is covered under it. The policy holder can claim insurance to undertake repairs to the home and also temporary cost of living in the house not fit for living.
What is home loan insurance?
As the name would suggest, it insures the home loan. It covers the balance of the loan amount payable to the creditor. It is more or less like term insurance policy. Due to unexpected developments like job loss, accidents or deaths wherein the debtors are not able to pay EMIs, the balance of loan would be covered under the policy. The insurance provider pays the balance of the home loan to the creditor
