IMPORTANT INFORMATION FOR RESIDENTS AND NON RESIDENTS IN SPAIN:
When signing a mortgage contract, can the bank force me to hire the house insurance with them?
The new Mortgage European Directive came into force in 2013 forbids Banks the abusive traditional practice of obliging their customers to hire the house insurance or any other additional financial products together with the mortgage loan. This means in practice that Spanish banks have been over charging a lot of expensive commissions frequently for just low quality under cover home insurance, and without the client’s knowledge or consent!
Subsequently, remember that so long as you put the bank as beneficiary of the insurance, your are free to hire the house insurance with the company of your choice. Do not accept any “black mail” or dubious tactics from your bank Manager!
Are you looking into insuring a home in Spain?
When living and/or having a second residence in Spain, you ought to have a comprehensive but also competitive house insurance, as to fully cover your dwelling at the event of fire, flooding, robbery…
Moreover, if you have children for example, it is always highly advisable that your house insurance policy should include a “family liability clause”, with at least € 150,000 of coverage, in order to cover for possible damages caused to third parties.
Therefore, choosing the right protection for your property in Spain is absolutely crucial and indeed many expats Are so excited once they have passed all the many hurdles that buying a property in Spain entails, that they usually Feel the insurance is fairly unimportant and something that ‘they will look at later’.
Get a free low cost quote from us today! At RICOR ABOGADOS&SOLICITORS, we can guarantee you a complete peace of mind as well as a quick, friendly and excellent efficient response at the event of a claim.
Please, visit our website www.ricorabogados.com or please contact us by e-mail at firstname.lastname@example.org
Thank you very much and we look forward to helping you!
“NON-PRACTISING ENGLISH SOLICITOR IN ENGLAND AND WALES”, under the “Solicitors Regulation Authority” (SRA)
SRA number 519196 and practicing Spanish Solicitor Nº1247