Do insurance comes with Home loan?

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Insurance is not automatically included with a home loan, but lenders often require borrowers to have certain types of insurance to protect their investment. There are typically two types of insurance that may be required:

1. Homeowner's Insurance: This type of insurance protects the property and its contents against damage or loss due to events such as fire, theft, vandalism, or natural disasters. Lenders usually require borrowers to obtain homeowner's insurance and provide proof of coverage before closing the loan. The insurance policy must typically meet the lender's minimum coverage requirements.

2. Mortgage Insurance: If you make a down payment of less than 20% of the home's purchase price, the lender may require you to have mortgage insurance. This insurance protects the lender in case you default on the loan. It typically comes in two forms: private mortgage insurance (PMI) for conventional loans or mortgage insurance premium (MIP) for FHA loans.

It's important to note that these insurance requirements may vary depending on the country and the specific lender's policies. When applying for a home loan, it's advisable to discuss the. 

 Insurance requirements with the lender or mortgage broker to understand what types of insurance are needed and how they may impact the overall cost of the loan.

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