Property insurance: what are the issues?

During the realization of a real estate project, the recourse to a real estate loan is often one of the solutions of financing the most in vogue. Indeed, a good number of owners and future buyers opt for a real estate loan for various reasons. First, this type of financing is more or less easy to obtain. Secondly, it provides the borrower with the amount of money he needs to complete his project. The latter will proceed to the repayment of the loan according to his means, but also according to the terms of the contract signed with the creditor (bank, credit company). In the granting of the real estate credit, it is often asked to the borrower to subscribe to an insurance borrower. What is it exactly? What are the stakes?

What is loan insurance?

You will find on many sites the necessary information to find a real estate loan at the height of your project and avoid any refusal of a loanAs well as your financial possibilities. As far as the borrower's insurance is concerned, as its name indicates, its function is to insure the borrower. In other words, the loan granted to the project holder is covered against certain risks that may arise during the repayment period of the said loan. The creditor often suggests the subscription to this document to his client. Guarantees will be requested from the borrower on his health, his professional activity, but also on his existence as an individual.

Coverage of various risks

The borrower's insurance or real estate insurance implies a cover on various risks related to the attribution of the loan in question. It takes in charge in particular:

  • Anomalies that tarnish the destination of the work. These are, among others, cracks in the walls, insulation problems or infiltration and subsidence.
  • Defects and defects that threaten the solidity of the building.
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It is worth highlighting the fact that coverage for these risks is mandatory. This has been particularly established to anticipate the emergence of problems during the term of the real estate loan.

The different types of loan insurance

The loan insurance is declined in several types. First, there is the most famous of them: the ten-year guarantee. This form of guarantee covers the risks of hidden defects for a period of ten years. The supervision of the services of the construction professionals is also its greatest asset. Secondly, there is the guarantee after work. This last one allows to protect oneself from anomalies and defects noticed after the delivery of the building site. Finally, we have the guarantee of perfect completion. This last type of insurance covers the defects and the faults which are listed in the report built at the reception of work. The builder will be responsible for the repair of these defects.

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