There are three types of home insurance.

1. The loan that you take is insured. If anything happens to you, the insurance company pays off the loan to bank

2. Insurance of the property against earthquate, floods etc.

3. Insurance of the household goods against theft burglary etc

If you feel like covering against the loan take insurance of type 1 only. There is no point in getting the same financed. Try to pay from your pocket so that you do not pay interest on insurance premia for five years !!!

You will get 80 C benefit in the year in which you pay insurance premia. This being a single premium policy, you will get rebate in this financial year only.

The other riders would have already been covered to you in any other insurance policy or your employer may be giving you a full health cover or a group insurance of all the employees.

Hence take cover only for repayment of the loan outstanding.