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