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Real estate insurance in America

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

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
investment portfolio.