Difference Between Home Loans and Home Insurance

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Home Loans and Home Insurance

People all aspire to buy a home at any point in their lives. However, homes are a significant investment for which not many people will have the entire amount. Buying your dream home involves years of hard work, patients, and effort. For securing your home, the best one is taking a home insurance policy.

The insurance policies cover the homes and all their repairs and liabilities. Further, you might have heard people asking about a home loan. Taking a loan is ideal for you to afford your place without compromising other essentials.

But the EMIs on home loans should be paid off on time. Unfortunately, people get confused between home loans and home insurance.

What is home insurance?

The home insurance policy is for securing the home from any unforeseen loss or damages. It protects your entire home along with your belongings. When you talk about policy, it covers the damage and the structure cover. Structural covers are provided to aid if the structure has been damaged. The repairing expenses are also covered under the topic.

Property all risk insurance Dubai looks at the insurance policies and gives them to the buyers. They explain all the benefits and provide you with insurance as per your need. Home insurance is purchased by both the house owner and the tenant. The tenant will be given the damage cover.

What is a home loan?

A home loan covers all the liabilities of the loan. Home loan safeguards from the peril of not paying the home loan. It means the policy prevents the owner from losing ownership if EMI payments are not made. It also provides rescue to the family and pays for the remaining when adversity arises.

The premiums can be deducted under Section 80C of the Income Tax Act, and It also helps reduce the down payment when the loan amount is taken.

Conclusion

Home insurance provides security against any monetary losses that may arise due to the structure of the homes. It also protects your valuables and your personal property. A home loan prevents the banks from selling your homes if you cannot repay the loan. Both terms are helpful, but you should know what must be taken. The insurance coverage doesn’t let you take any emotional stress. Anyone who plans on taking the loan can go for the insurance too. There, there are no EMIs involved.