Real rights registration through an insurance company

instagram viewer

A short circuit, a forgotten burning candle or children on fire - a house can burn down due to carelessness. In the event of such a case, there is an appropriate insurance. Anyone who is the creditor of a land charge or mortgage on the house or Property encumbrances, will usually make a real right registration with this insurance.

Insurance premiums can be high.
Insurance premiums can be high.

An application for real rights relates to the case of existing real rights. These are, for example, a land charge or a mortgage that can be used to secure a loan. The borrower or Homeowners cannot simply cancel an existing building fire insurance because the lender or The mortgagee has a say in this.

Real rights registration to secure own rights

  • The dream of having your own house can often not be realized without a bank. Anyone who finances their property with a bank loan will have to secure the loan with a land charge or mortgage.
  • At the same time, of course, the bank also has an interest in ensuring that the building itself, which is subject to real law, continues to exist. is insured against loss or damage. Before the loan amount is sufficient, she will therefore insist on taking out building fire insurance.
  • As a mortgagee, she will also register real rights with the insuring company, i. H. informing them that there is a mortgage (or land charge) and that they are the creditor.
  • Such registration of real rights has consequences for the policyholder, because he is no longer free to act in relation to the insuring company.
    • Cancel payment protection insurance - this is how it works

    With payment protection insurance, you secure your payment obligations in the event ...

Termination of insurance

  • According to § 142 para. 1 Insurance Contract Act (VVG), the insurer must notify the mortgage creditor if the first premium has not been paid if the insurer has already registered for real rights.
  • In addition, through the insurance in the event of the insured event to be notified to the mortgagee within one week, see. § 142 para. 2 VVG.
  • The policyholder himself will only be able to terminate the existing insurance if the mortgagee agrees to this termination, cf. § 144 VVG.

The termination of a building fire insurance is not easily possible with a real legal registration. When it comes to changing the insuring company, the bank becomes your mortgagee As a rule, however, do not refuse consent if the insurance cover is not at risk is.

How helpful do you find this article?

click fraud protection