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

If your financial institution requires mandatory home insurance to avail home loan benefits but insists on purchasing insurance exclusively from them, here are some steps to consider:

• Compare Policies: Compare the home insurance quotes offered by the financial institution with those from other insurers. Evaluate the coverage, terms, and conditions to ensure you’re getting the best value for your money.
• Evaluate Premiums: If the price difference between the financial institution’s offerings and other insurers is minimal and the coverage meets your needs, it may be convenient to opt for their insurance.
• Refuse if Overpriced: If the lender’s home insurance premium is significantly higher than other insurers in the market, it’s wise to decline their proposal. Consider factors such as customer assistance facility, additional services, and the claim settlement process when making your decision.
• Raise a Complaint: If the financial institution remains uncooperative or insists on overpriced insurance, file a complaint with the manager or relevant authority within the institution. Express your concerns and seek resolution.
• Consider Another Institution: If all else fails and the financial institution is unwilling to accommodate your preferences, explore other options. Look for alternative financial institutions that offer home loan services and are more flexible with insurance requirements.

By following these steps, you can ensure that you make an informed decision regarding home insurance for your home loan while maximising your benefits and minimising unnecessary expenses.