What Is Insurance Of Real Estate

Life is full of surprises and it is impossible to forecast what tomorrow will happen. But when we have some valuable property we want to be confident in its safety.

Insurance of real estate is a receipt of compensation of its cost or repair price from insurance company in case of loss occurrence.

Such type of insurance long ago became quite natural in the majority of the countries of Europe and America. It isn’t accidentally as insurance is one of the most available methods of property saving when making transactions with it or maintenance of its safety.

Let’s consider types of the existing insurance.

In case of purchase of real estate insurance policy the agreement in which all rights and obligations of participants are specified with list of insured events on which payment should be made. It is possible to sign such agreement at any of existing insurance companies by your choice.

Person, which signs the agreement on real estate insurance, can also insure the right for own property against claims of the third parties. Such type of insurance is called title. In that case legality of purchased real estate and right for it will be under its control and financial responsibility of insurance company. It is topical if you buy accommodation at secondary market. In this case you can fall a victim of disputes on the property right of the seller. Then such type of insurance becomes a real “lifesaver” in modern unstable and rather dangerous conditions.

Compulsory insurance of real estate will be necessary if you decide to take a credit pledge for which it will be taken. After all, in case of unforeseen circumstances which can lead to its loss, the bank won’t be able to collect the unpaid credit from you. Therefore bank will demand an obligatory insurance of it.

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