Real estate insurance in America is a guarantee that the customer gives to the bank over the real estate owned by him or his guarantor and he follows it in any hand to which the real estate is transferred, such as if it were sold for example, meaning that the bank has the right to repay his debt at the time of maturity by requesting compulsory execution on the mentioned real estate and if it is transferred to any Another person (this is called the right of tracing) and who has the right of preference in the face of crowding out the ordinary creditors in repaying his entire secured debt from the price resulting from the sale by public auction.
Real estate insurance in America
The real estate insurance contract must be registered in the real estate registry, as it has no executive value if it is not registered in the real estate registry.
If the debt is paid, the real estate insurance lapses by default, even if the insurance reference remains registered in the real estate registry.
Therefore, if all banking facilities secured by real estate insurance have been paid, and then the customer requests new banking facilities with the said insurance guarantee, the bank must release the insurance and then cast a new insurance, and all this is to avoid any dispute between other creditors regarding the invalidity of the insurance as a result of the debt forfeit.
In the event that the owner of the property dies and this property becomes divided into shares and shares for the heirs, each share in this case guarantees the entire debt.
The bank may implement on all the shares or choose a share of these shares and execute on them without the right of objection by its owner, since the real estate insurance is indivisible. Likewise, in the event that there are several real estate properties, the bank may implement on any of them and each of them guarantees the entire debt.
As for real estate not registered in the real estate registry, it is not considered a sure guarantee in terms of ownership and area and is usually either not cleared or under determination and its ownership is acquired over time with a quiet, public, unambiguous and continuous possession.
The owner of the insured property can sell it with the approval of the bank (the creditor with the right to insurance).
How to insure real estate in America
For these and other privileges, insurance on real estate and homes is mandatory and necessary when owning and investing in the real estate field of all kinds, and the creation of an insurance policy with detailed clauses according to the desire of the property owner, in addition to the purchase contract, to ensure that the holders of this document cover their group of investments and properties from various risks and disasters , whether human or natural.
The insurance policy provides many advantages to landlords and tenants, the most important of which is the amount of compensation for the loss of rent value, or granting him the cost of renting an alternative housing, if the property is uninhabitable due to the damage incurred.
If car insurance is mandatory before using it, and health insurance is mandatory, why isn't real estate insurance mandatory as well, because of its benefits to the investor?
Many may not be convinced of the idea of real estate insurance or take
it easy because of not realizing its importance in the investment plan and its
profits. and the desired returns, as real estate insurance is insurance for the