Home Insurance Compulsory along with SBI Home Loan

POSTED BY pankajgaud80 ON February 27, 2014 10:54 am COMMENTS (9)

Hi

I am planning to take 30L home loan from SBI – Maxgain (Jointly Me and my wife). My loan tenure is 15 year and loan interest rate is 10.15%. My flat is under construction and possession by March 2015. I have two following questions:

  1. DO I need to take home loan insurance? (.Like SBI RiNn Raksha)
  2. Do I need to take home insurance? (As per SBI home loan term and condition – The house/flat shall be insured comprehensively for the market value covering fire, flood, Earthquake etc. in the joint names of the Bank and the borrower. Cost of the same shall be borne by the borrower)

I have already take few life insurance policies from LIC (total sum assured mine 10.5L and my wife 4.75L) and one term insurance plan of 50L (mine)

Please help me for this

 

9 replies on this article “Home Insurance Compulsory along with SBI Home Loan”

  1. ashalanshu says:

    Dear Pankaj, Be it home insurance or life, you have the option to purchase from insurer of your choice. As far as life insurance, it’s not at all mandatory.

    Thanks

    Ashal

  2. roshan says:

    Property insurance is mandatory. Life insurance is not mandatory

    1. pankajgaud80 says:

      Thanks Roshan

      1. roshan says:

        In SBI home loan application form it is clearly mentioned that life insurance is not mandatory. You can check ‘no’ in the form where they ask you if you need insurance policy like Rinn Raksha.
        In case they force you at RAPC (based on this forum this happens at few RAPC centers) to take up some insurance ,tell them you will opt for a term insurance instead

        1. pankajgaud80 says:

          Hi Roshan,

          Thanks for reply.

          I have already taken trem insurance of 50L.

          Pankaj

  3. pankajgaud80 says:

    Thanks a lot Ashal,

    If understand correctly, so you want to say that Home insurance is compulsory ? But I have choice to buy from SBI or others.

    Thanks
    Pankaj

  4. ashalanshu says:

    Dear Pankaj, term insurance is not at all mandatory. You can refuse to purchase rin raksha policy as you are already having cover of 50L Rs. from Term policy.

    Home insurance can be purchased either from SBI general under tie up or from the insurer of your choice.

    Thanks

    Ashal

  5. Credexpert says:

    Dear Pankaj,

    Does the agreement mention anything about the “Home loan insurance”? Your Life insurance should suffice for the same.

    About the “Home insurance” that is mentioned in the agreement, check if it is mandatory to be availed from SBI.

    Regards,
    Credexpert
    http://www.credexpert.in

    1. pankajgaud80 says:

      Thanks for your reply.
      My Loan will be section by March 1-2nd Week. So there is time in agreement. I am doing secondary research and if I face the same during the agreement than I will be aware to handle this.
      •For “Home loan insurance” – I did just market research and read blogs. Most of the blog coats that banks force to take some insurance policy
      •“Home Insurance” – That is mention in SBI Term and Condition
      Thanks once again

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