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POSTED BY ON July 17, 2014 11:08 pm COMMENTS (3)
Hi,
I have taken home loan from SBI and one installment to builder has already been disbursed (by providing the demand note from builder). Now for the second installment (Another demand note from the builder for a certain amount), they are asking me to get property insurance as the construction work is more than 80% complete. I had taken home loan from SBI earlier also (which I repaid) and I had not taken any property insurance back then. The bank is saying I must take the property insurance to get the amount disbursed, without it they will not make the payment to the builder. Is it compulsory to take property insurance? I have already taken Home Loan Protection Insurance from them.
Please advise.
Regards
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Dear Sir,
While it is required that you take property insurance and amount will be disbursed only if that is in place, you need not purchase the same with SBI. Property insurance can be purchased from other insurance companies as well.
Regards,
Credexpert
http://www.credexpert.in
Yes you have to purchase the property 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”
Hope this will help you
I think they are misselling you…..