HDFC home loan & Property insurance

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I need some help on HDFC home loan as its the first time I am dealing with home Loan.

The loan is for 40L for a under-construction property.

The sanction letter they shared has following wordings :

• The borrower undertakes to insure the property for full reconstruction value and assign the policy in favour of HDFC Bank Ltd.
• You can avail property insurance from any insurance company of your choice. Customer's participation in this policy through us is entirely voluntary.

I have asked DSA multiple times that I don't want property insurance and he always deflects question; saying it depends case on case basis and all.

Few questions :

1. Is property insurance is mandatory for under construction property ?
2. Can I stand on my ground and reject the property insurance ?
3. Can I ask them to revise the sanction letter to remove above point since I don't want property insurance. Will they revise the sanction letter easily ? I have only received soft copy of sanction letter; haven't signed it yet.

I need disbursement ASAP as the due date for builders demand has already exceeded.

Any experience with HDFC home loan where one had above mentioned condition on sanction letter and didn't get the home loan ?

Many thanks in advance.

 

[arun4455]

I had similar experience with SBI, where SBI asked me to get the property insurance for under construction property. Then I argued that insurance can be taken only if a property exists, and in this case there is no property till builder completes the construction. They agreed and accepted that no insurance would be required till the possession of the property. Post possession, I will see whether should I take the insurance or not.

 

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I had similar experience with SBI, where SBI asked me to get the property insurance for under construction property. Then I argued that insurance can be taken only if a property exists, and in this case there is no property till builder completes the construction. They agreed and accepted that no insurance would be required till the possession of the property. Post possession, I will see whether should I take the insurance or not.

Exactly. That's what I thought. I will try telling the same thing to them if they bring this topic.

 

[Zacobite]

I need some help on HDFC home loan as its the first time I am dealing with home Loan.

The loan is for 40L for a under-construction property.

The sanction letter they shared has following wordings :

• The borrower undertakes to insure the property for full reconstruction value and assign the policy in favour of HDFC Bank Ltd.
• You can avail property insurance from any insurance company of your choice. Customer's participation in this policy through us is entirely voluntary.

I have asked DSA multiple times that I don't want property insurance and he always deflects question; saying it depends case on case basis and all.

Few questions :

1. Is property insurance is mandatory for under construction property ?
2. Can I stand on my ground and reject the property insurance ?
3. Can I ask them to revise the sanction letter to remove above point since I don't want property insurance. Will they revise the sanction letter easily ? I have only received soft copy of sanction letter; haven't signed it yet.

I need disbursement ASAP as the due date for builders demand has already exceeded.

Any experience with HDFC home loan where one had above mentioned condition on sanction letter and didn't get the home loan ?

Many thanks in advance.

its isn't mandatory.. go to kotak if they insist.. however.. buying a home insurance and a term insurance for the home / amount if HL us good practice.. but not to assign it to the bank!!!

 

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its isn't mandatory.. go to kotak if they insist.. however.. buying a home insurance and a term insurance for the home / amount if HL us good practice.. but not to assign it to the bank!!!

Yeah. I can still think of taking the property insurance if the policy is for me but buying the policy in the name of the bank seems just super awful.
They already have the property as collateral and yet wants us to pay for their insurance.

I will stand my ground and deny the property insurance however do I need to ask them to revise the sanction letter ? Or will they easily revise the sanction letter.

What I mean to say is; what if they agree to my condition of not getting the insurance and proceed with the disbursement, Do I still need to worry that the sanction letter has the condition that I need to ensure the property in their name ?

 

[Zacobite]

talk to them and see..they want your biz.. insurance is gd.. u r still liable to pay emi... buy the insurance on ur name