Do I need to double the life and multi-risk insurance when transferring my home credit?

Need to clarify issues related to loans and insurance? Poupança no Minuto agents offer free credit intermediation and insurance mediation services. Contact us now or better understand what happens to insurance when transferring a mortgage loan next.

Mortgage credit: Must have associated life insurance and multi-risk insurance.

When hiring a home loan, banks require two insurances: Life insurance and multi-risk insurance. It is a mandatory step for approval, to protect the bank in case of an unexpected situation.

So, life insurance protects the banking institution in case the credit holder suffers an illness or accident that prevents them from earning income and repaying the loan installments. At the same time, multi-risk insurance protects the property in case of any mishap. Depending on the coverage, it may also cover the contents of the property.

You can search for the most suitable insurance company.

As a rule, banks ask you to take out insurance with their associated insurer, but you are not required to do so. You can search for the insurer that makes the most sense for you and offers you the best proposal in terms of cost-benefit. In this case, the bank may increase the credit spread in return, but often it is worth it when considering how much you can save by using insurance from a company outside the bank.

But let's consider the following situation: you already have the housing loan contracted and, at the time you went through the process, you also hired the insurance with the associated insurance company. And now you want to transfer the housing loan. The question arises: What should be done with the insurance? Is it possible to cancel the policy early in these cases? Let's see next.

I want to transfer my mortgage, what do I do about insurance?  

If, due to lack of knowledge or because it was considered advantageous, when you contracted your housing loan you opted for the insurance company associated with the bank to contract the required insurance (life and multi-risk), when wanting to transfer the housing loan there may be some questions. Once the insurance is contracted with the bank's partner insurance company, what happens to the insurance when transferring the loan?

What often happens is that when transferring credit, customers forget about insurance and hire new policies at the bank's insurance company to which they transferred, as suggested by the bank (for better financing conditions). This leaves other insurances still active and ends up with duplicate insurance, unnecessary.

How to prevent duplicated insurance policies?

So what should be done to prevent this situation? As a rule, these insurances can only be canceled in two cases: by not renewing the policy, which implies waiting until the date of the next renewal, or in the sale of the property.  

In this case, since the property is not sold, but the debt is settled in the first bank, it must be noted that this is a matter to be dealt with directly.

Therefore, to prevent the contracting of duplicate insurance, you can: suggest to the new bank to keep the current insurances that you have, if you are satisfied. Or, if you consider it worth it, proceed with the transfer of insurances to the new insurer. It is true, just as you transfer the mortgage, you can also change the insurances to a new entity.

Although it does not happen automatically, that is, when transferring credit it does not transfer insurance, it is possible to request the transfer at the current insurer.

To ensure that no step is missed, you can turn to a credit intermediary/insurance mediator such as Poupança no Minuto to accompany you in the processes of transferring both housing credit and insurance.

Ensure you achieve the greatest savings possible with your monthly expenses and payments, with the help of a free and personalized service. Contact Poupança no Minuto, save yourself from bureaucracy, challenges, and save on your budget!