buildings insurance

This topic contains 2 replies, has 2 voices, and was last updated by  Anonymous 13 years, 2 months ago.

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  • #51790


    We are taking over the developers mortgage and have just been informed by the bank arranging the mortgage that we must take out our building and life insurance with them, is this the case ?

  • #62047


    First, be aware that the Promoter cannot impose a contract clause forcing you to take on his mortgage, this is a decision (take on the Promoters mortgage or find your own) that must be taken freely, this kind of clauses are considered abusive and void. They cannot impose you to pay the subrogation fees in case you decide to use your own mortgage either.

    Secondly, almost every bank would demand you a live and a damages insurance to give you a mortgage loan (100% of banks will require a damages insurance, it varies with the live one). Here is one of the issues hidden in those so apparently attractive interests rates some banks are offering… Yes, the rates may be interesting but sometimes they hide the obligation to contract those insurances with their own associated companies with no so competitive fees…

    I’ve recently subscribed a mortgage loan, maybe a 0,15%-0.20% higher rate than most attractive rates now been advertised in media, but reduced commissions, no live insurance and absolute freedom to choose my own damages insurance company, notary, appraiser…

    I’m not saying that you shouldn’t take on the promoters loan, it could be an interesting one, I just don’t know it’s details. Just saying you will find the requirement of those insurances from almost every bank in Spain and that sometimes it’s good to make a little research to find the best loan to fit your needs. Also it may be interesting to contract a live insurance, no matter if the bank requires it or not, just to prevent your inheritors from non desirable consequences.


  • #62048


    Thank you for your reply Cesar, we are happy to take on the developers mortgage but wanted to arrange our buildings and life insurance through a company recommended to us but we are being told by the bank that we have to take out our insurance with them

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