Property Insurance in home loan

Its not mandatory. Same happened with my SBI home loan. I denied for insurance.  Loan was disbursed.  No issue.

It's not mandatory. The employee must be having sales pressure from boss, so they are calling on old customer data to get some sales. Tell him u will buy property insurance if he can show in written that property insurance is mandate in home loan

What is insured declared value in case one-time premium of 20,963? 

Which insurance company is it thats charging you 21k?

No it is not, ask bank to give it on a letter head telling the same

if they do, very good, you can file a case with RBi and get a good compensation 

1) As everyone said it is not mandatory, but they may force you. Deny as much as you can and tell them that you would complain to RBI ombudsman.

2) If you have personal insurance , you can talk to them and share a copy of it with them.

3) The other option is take insurance outside and share with them (much cheaper)

4) Tell them you want to switch your home loan to some other bank 

It depends on you, if you want to adopt 1 or 2,3,4 tricks

Not mandatory. Tell them that as per rbi guidelines it is not mandatory & you will raise a grievance for misselling against them

As I can see lots of posts here mentioning property insurance is not mandatory, I will be trying to put my point logically. 

Till the time you payback the loan, the asset is owned by financial institution as primary security. They have every right to formulate a policy for safeguarding their asset and hence they can make a policy to make it mandatory. 

RBI only has made loan insurance as optional which is different from property insurance. Loan insurance is like a term loan with reducing cover and safeguard the life of borrower. On the other hand, Property insurance cover damage to property. 

Coming to the case, I would advise OP to read sanction letter/arrangement letter properly to check T&C of property insurance. Also take quotations from different general insurance providers and then select suitable one after consulting from bank once to check if all necessary risks are covered. 

As per

T&C available on website homeloans.sbi, 

Insurance:
The house/flat purchased/constructed with Bank’s finance should be insured against the risk of fire/riots/earthquakes/lightning/ floods etc. in the
joint names of the borrower and the Bank for the actual project cost after netting off the cost of land (including undivided share of land in case of flats), cost of stamp duty and registration charges. Cost of the same shall be borne by the borrower.

So atleast SBI has made property insurance mandatory. 

Did you get home loan without property insurance from SBI?

yes.... I've home loans from BoB as well as SBI from past 1 year.... without property insurance

But BoB recently asked me to take property insurance but after I declined they did not persuade me to take it.