As per the Real Estate (Regulation and Development) Act, 2016 (RERA), it is mandatory for builders to provide insurance for under-construction properties. This insurance is known as builder’s risk insurance and protects the property from damage or loss during the construction period.
The insurance policy is generally valid for the duration of the construction period, which is usually the same as the insurance term. However, if you have not taken possession of the property and it is not registered in your name, you may not need to keep the insurance. You can check with your bank or insurance provider to confirm if you can cancel the policy.
It’s important to note that builder’s risk insurance is different from property insurance, which is required for properties that are already constructed and occupied. Property insurance protects the property from damage or loss due to natural calamities, theft, fire, etc.
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Authors Of The Question
Under construction property - Bank sold the Home Credit Assure Insurance to me. The Insurance term and construction period both are same, so do I need to keep the insurance? The property is not registered in my name, no possession, then why is property insurance required ?
Sadashiva
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1 Answers
1 Year
2023-10-11T11:31:56+00:00 2023-10-11T11:31:57+00:00Comment
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