Bank 'mandatory' Insurances

Rose FP · 24-01-2009, 09:40

There is a continuing confusion with both banks and clients alike around the issue of what the banks (lenders) can do to insist upon certain Assurances and Insurances related to a mortgage, new or existing.

The law in relation to such Assurances and Insurances is now the same in Spain as it is in the UK; The Bank of Spain outlawed 'mandatory' bank offerings about 2 years ago.

However, the banks are entitled to request such but they cannot insist on you taking their own! You are entitled to arrange your own and, yes, you may even have to have the bank noted as a beneficiary in the event that a claim needs to be made.

One final point! The banks here offer a discount on the pay rate of the mortgage (supposedly) when offering their own products (life, home, pensions, cards, etc) BUT watch out that you do not get caught by a seemingly attarctive net pay rate only to get hammered on premiums for the these other products.

greg · 24-01-2009, 13:19

Banks are greedy and in Spain over the top arrogant...

I say if you need insurance for ANYTHING get yourself a specialist! There are professional insurance brokers in Spain which have years and years of experience.

Most bank employees have no clue about insurance and thus simply offer what they have, beware!!!!!!!!!!!!! Not to forget the fact that with the situation of Spanish banks today, I wouldn't recommend anyone putting all their eggs in one basket.

Get your insurance from a pro!

BTW: Rose FP - thanks for the info!

JazminesII · 24-01-2009, 20:22

For home and content insurance I can highly recommend Mapfre...........after our recent bicycle theft we were reinbursed really quickly.

keddyboy · 25-01-2009, 01:10

La Linea Direct now do house and contents insurance as well as car insurance. Very reasonable rates and quick to react in case of an emergency.

Rose FP · 25-01-2009, 09:44

Greg, you are right in that their employees are under pressure to produce results and, even if they know the 'new' ruling' (and I know that many do not), they may conveniently forget!

So, yes, buyer beware!

Rose FP

AndyinTenerife · 17-03-2009, 18:12

Not just insurance... Deutsche bank and a few others offer life cover, Buildings and contents, credit card, pension, investments etc and reduce their mortgage rate for each one you take.
Cross-selling at its worst - I suppose the credit card isnt too bad as you simply dont need to use it.
Good idea to keep your mortgage lender separate from all your other financial products both here and in the UK.

JazminesII · 18-03-2009, 11:36

For me Mapfre has offered a fantastic service on home insurance......when I had to make a claim I was paid within a couple of days of sending them the Guardia report......;-))

24-01-2009, 09:40	#1 (permalink)
Rose FP Rose FP is.... Regular Member Join Date: Dec 2008 Posts: 42 Thanks: 0 Thanked 12 Times in 12 Posts Rep Power: 0	Bank 'mandatory' Insurances There is a continuing confusion with both banks and clients alike around the issue of what the banks (lenders) can do to insist upon certain Assurances and Insurances related to a mortgage, new or existing. The law in relation to such Assurances and Insurances is now the same in Spain as it is in the UK; The Bank of Spain outlawed 'mandatory' bank offerings about 2 years ago. However, the banks are entitled to request such but they cannot insist on you taking their own! You are entitled to arrange your own and, yes, you may even have to have the bank noted as a beneficiary in the event that a claim needs to be made. One final point! The banks here offer a discount on the pay rate of the mortgage (supposedly) when offering their own products (life, home, pensions, cards, etc) BUT watch out that you do not get caught by a seemingly attarctive net pay rate only to get hammered on premiums for the these other products.

24-01-2009, 13:19	#2 (permalink)
greg greg is.... Admin Join Date: Jun 2008 Posts: 1,068 Thanks: 11 Thanked 86 Times in 79 Posts Rep Power: 10	Banks are greedy and in Spain over the top arrogant... I say if you need insurance for ANYTHING get yourself a specialist! There are professional insurance brokers in Spain which have years and years of experience. Most bank employees have no clue about insurance and thus simply offer what they have, beware!!!!!!!!!!!!! Not to forget the fact that with the situation of Spanish banks today, I wouldn't recommend anyone putting all their eggs in one basket. Get your insurance from a pro! BTW: Rose FP - thanks for the info! __________________ *How effective is your* Marketing?**

25-01-2009, 09:44	#5 (permalink)
Rose FP Rose FP is.... Regular Member Join Date: Dec 2008 Posts: 42 Thanks: 0 Thanked 12 Times in 12 Posts Rep Power: 0	Insurances Greg, you are right in that their employees are under pressure to produce results and, even if they know the 'new' ruling' (and I know that many do not), they may conveniently forget! So, yes, buyer beware! Rose FP

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24-01-2009, 20:22	#3 (permalink)
JazminesII JazminesII is well actually has found lots of familiar folks ;-)) Spain Guru Join Date: Oct 2008 Location: Costa Cálida (Hot Coast) ;-)) and UK (;- Posts: 1,406 Thanks: 55 Thanked 94 Times in 93 Posts Rep Power: 38	For home and content insurance I can highly recommend Mapfre...........after our recent bicycle theft we were reinbursed really quickly.

25-01-2009, 01:10	#4 (permalink)
keddyboy keddyboy is Guadalhorce Valley, Costa del Sol Spain Guru Join Date: Nov 2008 Location: Guadahorce Valley Posts: 507 Thanks: 0 Thanked 39 Times in 34 Posts Rep Power: 28	La Linea Direct now do house and contents insurance as well as car insurance. Very reasonable rates and quick to react in case of an emergency.

17-03-2009, 18:12	#6 (permalink)
AndyinTenerife AndyinTenerife is.... Regular Member Join Date: Mar 2009 Location: Tenerife Posts: 20 Thanks: 5 Thanked 0 Times in 0 Posts Rep Power: 0	Not just insurance... Deutsche bank and a few others offer life cover, Buildings and contents, credit card, pension, investments etc and reduce their mortgage rate for each one you take. Cross-selling at its worst - I suppose the credit card isnt too bad as you simply dont need to use it. Good idea to keep your mortgage lender separate from all your other financial products both here and in the UK.

18-03-2009, 11:36	#7 (permalink)
JazminesII JazminesII is well actually has found lots of familiar folks ;-)) Spain Guru Join Date: Oct 2008 Location: Costa Cálida (Hot Coast) ;-)) and UK (;- Posts: 1,406 Thanks: 55 Thanked 94 Times in 93 Posts Rep Power: 38	For me Mapfre has offered a fantastic service on home insurance......when I had to make a claim I was paid within a couple of days of sending them the Guardia report......;-))

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