Nowadays, home loans come tagged
with property insurance and most people prefer it that way.
Banks are also comfortable with
this trend have come forward to lend finance to pay the insurance premium. Home
insurance or Property insurance offers
a safety net which has become important in the context of people going for
bigger loans because of the unprecedented increase in property rates. Borrowers
as well as banks do not want to take chances.
When a borrower takes Property
insurance, he can be sure that banks would not pounce on his family if
he dies before repaying the loan. Also, in case of fire, theft and damage to
property in natural calamities, the borrower gets compensation from insurance
companies. Banks which sometimes face difficulty in recovering the loan amount
from dependents, are now advising applicants to go for Property insurance. The banks usually pay the premium themselves
and adjust it in the monthly installments being paid by the borrower.
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http://EzineArticles.com/1096246
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