Insured mortgages, simply put, are a way for banks to transfer risks.

For example, if you mortgage your house to a bank and obtain a corresponding loan, the bank will own the property before you repay the loan.

The bank will be responsible for all risks incurred by the property during this period.

In order to transfer the risk, the bank will purchase insurance for the property here and transfer the risk of loss to the insurance company. Once the property is damaged, the insurance company will compensate accordingly. Thus the bank's rights and interests are protected.

The same goes for cars.

Theoretically, this type of insurance should be paid for by the bank, but in actual life, the bank usually requires the lender to handle it.