What can you do if a financial institution forces you to buy a home insurance policy from them?

If your financial institution has internal guidelines that require mandatory home insurance to avail home loan benefits, it is not compulsory to purchase insurance coverage from them. However, if your bank insists on buying home insurance exclusively from them, consider the following steps:

Compare Policies: Compare home insurance quotes offered by financial institutions with those from other insurers.

Evaluate Premiums: If the difference is minimal, it may be convenient to opt for the financial institution’s offerings in this case.

Refuse if Overpriced: If the lender’s home insurance premium is significantly higher than other insurers in the market, it is wise to decline their proposal. Additionally, consider other factors such as customer assistance facility, additional services, claim settlement process, etc.

Raise a Complaint: If the financial institution remains uncooperative, file a complaint with the manager

Consider Another One: If all else fails, explore other financial institutions that will cooperate with you for your home loan needs.