Mortgage to buy a house has to pay insurance, because the bank requires the borrower to buy insurance for the loan in order to guarantee the borrower to repay the loan. That is mortgage insurance, which belongs to accident insurance. Now bank loans generally include mortgages. In order to prevent the lender from interrupting the repayment due to accidents, the bank can transfer the loss risk to the insurance company once the risk occurs by asking for accident insurance.
The full name of mortgage insurance is "personal mortgage comprehensive insurance" or "personal mortgage comprehensive insurance", which is the insurance that the bank requires the lender to buy to prevent mortgage risks when the buyers apply for loans from the bank. The "loan" here refers to loans from commercial banks, excluding provident fund loans. The original housing loss insurance of property insurance companies is to provide protection for insured houses. If during the loan repayment period, the mortgaged house suffers losses due to fire, explosion, rainstorm, typhoon and other reasons, and the reasonable rescue expenses required to rescue the house, the insurance company will compensate according to the contract.
The mortgage insurance in the insurance market contains new clauses, which increases the responsibility of repayment guarantee for the insured. The agreed repayment person died or was disabled due to accidental injury during the insurance period, and lost all or part of the repayment ability, resulting in failure to perform or not fully perform the repayment obligations agreed in the loan contract for three consecutive months. The insurance company will bear all or part of the repayment of the bank loan balance in accordance with the prescribed proportion. At the same time, the contract lists the corresponding death and the reimbursement ratio of different disability levels. At present, the mortgage insurance in Shanghai market is mainly "Shanghai Personal Mortgage Comprehensive Insurance", including property liability insurance and repayment liability insurance.
Similar to ordinary personal accident insurance, repayment liability insurance with preferential rates is a smart choice for those who take real estate as their greatest asset and do not have adequate personal protection arrangements. Arrange the mortgage insurance according to the loan amount, so as not to lose the ability to repay the loan because of various accidental injuries, and the purchased property will be taken back by the bank because it cannot repay the loan.