Real estate insurance in America is a right in kind over real estate designated to guarantee the fulfillment of an obligation, and it is not indivisible, and it falls entirely on the real estate allocated to it, and on each real estate thereof, and on every part of it, and it follows it in any hand it moves to, and it is divided into two types.
Types of real estate insurance in America
Consensual insurance that arises in the contract, therefore, the contract of its establishment must fulfill the elements and conditions that must be met in any contract of consent, eligibility, location and reason, and the consent must be sound and free from defects, in accordance with the general rules.
Consensual insurance is either permanent or temporary. As for compulsory insurance, compulsory insurance is registered by virtue of the force of law in certain circumstances, with or without the consent of the owner of the property. Compulsory insurance is only to guarantee certain and specific rights received exclusively, and is only done in a specific name.
The real estate credit insurance policy in America is considered an important tool for banks and real estate finance companies to manage the risks they are exposed to, the most important of which is the clients’ failure to pay the mortgage loan for reasons of death or commercial reasons such as bankruptcy, which helps banks and real estate finance companies in stabilizing their cash flows and protecting their commercial entitlements in light of variables. Competition and business climate.
Real estate insurance in America
These documents help banks and real estate finance companies to expand lending, especially to individuals, because they have transferred the burden of bearing the cost of the client’s default from the bank to the insurance company.
This real estate financing document aims to compensate the insured (the
bank - the real estate finance company) for the loss that may be incurred by
him and arising directly from the failure of the “insured” borrower to pay the
installments of the loans granted, whether it is to finance the purchase,
construction, restoration or improvement of a property.