Home Insurance vs Home Loan Insurance, Know the Difference
While they sound similar, home insurance and home loan insurance serve different purposes
| Feature | Home Insurance | Home Loan Insurance |
|---|---|---|
| Purpose | Protects the property and contents | Pays off the home loan if borrower dies |
| Coverage | Fire, theft, natural calamities, etc. | Outstanding loan amount |
| Beneficiary | Homeowner | Lender (Bank/NBFC) |
| Optional | Yes | Often bundled with home loan |
Takeaway: Home insurance protects your property; home loan insurance protects your loan liability.