Seguros y pensiones para todos

Home > Glossary > Assignment of rights clause

Assignment of rights clause

The Mortgage Law establishes that, in the case of having a loan with a mortgage guarantee on a property, that property must be covered at least by a fire insurance policy for the value of the construction of the property.

Some banks ask the client, when signing the mortgage, to take out a home insurance policy that includes a clause assigning rights in favor of the bank or savings bank.