fire insurance on property

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ptroncin
Posts: 12
Joined: 07 Apr 2011 12:45

fire insurance on property

Post by ptroncin » 13 Apr 2011 12:14

Hi,

I have a mortgage with Emporiki bank for about 2 years now and they just discovered there is no fire insurance on my property; they want to contact the insurance company and deduct the insurance from
my mortgage. I totally disagree with that. First i have never been told about this insurance before.
Secondly they want to impose this insurance by contacting the insurance company; I do not even know what price it will be.
Do they have the right to do that and what can I do to stop this insurance?

best regards,

Patricia Troncin



andrew
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Joined: 27 Feb 2008 13:12
Location: Limassol
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Re: fire insurance on property

Post by andrew » 13 Apr 2011 12:56

Hi Patricia
It is usually a condition of a mortgage in Cyprus that fire insurance is assigned to the bank, under EU law Emporiki cannot insist on using their insurance company you can use any company registered in Cyprus. The premium should be around €1.75 per thou if you want further information please send me a pm
Andrew



Nigel Howarth
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Re: fire insurance on property

Post by Nigel Howarth » 13 Apr 2011 13:35

Hi Patricia

In addition to fire insurance that Andrew has mentioned, banks often need life insurance policies assigned to their name. For example, if you take a mortgage with the Bank of Cyprus, it requires:
  • 1) Assignment of the rights of the sales contract, deposited at the Cyprus Land Registry, duly signed and stamped.

    2) Developer’s guarantee for the period until the issuance of title deed. The property will then be mortgaged in favour of the Bank until full settlement of the facility.

    3) Personal guarantee of customer’s spouse (if applicable).

    4) Assignment of customer’s Life Insurance policy covering loan amount and period.

    5) Assignment of fire policy insurance over the immovable property in the Bank’s favour.
However, you are under no obligation to use an insurance company dictated by the bank.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Mike Strand
Posts: 7
Joined: 16 Jan 2013 22:43

Re: fire insurance on property

Post by Mike Strand » 06 May 2013 12:36

As the Management Committee of apartment complexes are required by law to take out fire, lightning & earthquake cover for the jointly-owned buildings, how does this sit with the requirement of mortgagees having also to take out insurance? Insurance companies don't normally like 'double insurance'!



Nigel Howarth
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Re: fire insurance on property

Post by Nigel Howarth » 06 May 2013 23:13

Hi Mike,

One of the requirements is that both the commonly owned parts of the building and the individual dwellings are insured with the same company.

More information at Insurance of Cyprus apartments & building complexes

And you download the information in pdf format from Everything you would like to know about the insurance of jointly-owned buildings.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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