RERA Insurance: Your Home's Shield Against Builder Negligence and Hidden Risks

• Homebuyers in Karnataka approached the RERA tribunal after a fire, finding their builder failed to provide mandatory Section 16 insurance documents for repairs.
• Section 16 of RERA mandates builders to secure insurance for land title and the entire project, covering risks like structural damage and fire, with premiums paid until possession.
• At handover, the insurance policy and benefits must be transferred to individual buyers or the association of allottees, acting as a crucial financial safety net.
• Skipping this insurance exposes homebuyers to significant financial and legal risks, forcing them to bear repair costs or litigate title issues out of pocket.
• Buyers can file a complaint under RERA Section 31 for non-compliance or under the Consumer Protection Act for 'deficiency in service' and 'unfair trade practice'.