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.