The compulsory insurances that a mortgaged home must have are the Fire and Tax Insurance.
In other words:
Insurance against Tax Deduction:
This is the insurance that aims to pay the debt to a person’s financial institution in case of death, benefiting their heirs. The insurance will release the heirs from the obligation to pay the debt.
This guarantees insured compensation in the case of a fire on the goods stated in the policy. It also includes the repairs or replacements of damaged goods, eg damages produced in the extinction of the fire.
In addition, mortgage loans with a Title I housing allowance must include compulsory unemployment insurance (dependent worker) or disability insurance (self-employed worker). This is for the acquisition of properties with a value of more than UF 1,000.
Insurances that are not mandatory would be:
- Disability Insurance
- Unemployment Insurance
- Earthquake Insurance
Translated from ‘¿Cuáles seguros son o no son obligatorios?‘