Bank loans and house insurance
Buying a home is one of the most important purchases, or perhaps even the most important, that we can make throughout our lives. Firstly, for what it means to buy the place where we are going to live, to constitute our home and our family and, secondly, for the financial investment that this purchase represents. For most families, buying a home is synonymous with bank credit and that is exactly why it is so important to understand and analyze everything that is at stake when we take out a loan!
For most families, buying a home is synonymous with bank credit and that is exactly why it is so important to understand and analyze everything that is at stake when we take out a loan! In this article, we will cover insurances!
To take out a home loan, there are two types of insurance always associated and that are mandatory: multi-risk insurance for the house itself and life insurance for those who are applying for the loan. Theses mandatory insurances are related to the risk guarantee associated with this credit, since we are dealing with high amounts.
A multi-risk insurance is a home insurance and guarantees a set of coverages that protect the property and its contents in situations that put it at risk, such as a fire. Bearing in mind that this is the insurance that protects the house, all coverages can be defined according to what the customer wants to add (theft, flood, earthquake, vandalism …). Life insurance, on the other hand, protects the titleholders and their debt: in the event of death or disability, insurance coverage pays for the property, ensuring that the house remains the property of the owner or family members.
Although having these insurances is mandatory, they do not have to be contracted with the bank that will grant the credit. Each customer can choose to do it with their bank or with another insurance entity that offers the desired coverage at a better price. It is also true that the bank can guarantee better credit conditions if insurance is included in the contract, which is why it is so important to analyse all the data before completing the loan application.
It is also important to note that insurance, like credit itself, can be renegotiated and transferred over the course of your entire payment. It pays to be attentive to the market and keep calculating!