It’s sure an easy way to finish up all the paperwork (which is cumbersome for everyone!) once and for all. But, it also means quickly forgetting that your commercial relationship with the bank when you sign a mortgage does not require also taking out home insurance with the same bank, even if you’re being lured with a lower interest rate. It’s all a question of common sense and priorities...

If you actually come out winning on the cost of the loan with a “loan/insurance package”, this option may make sense; however, you must still make sure you know what’s included in the home insurance cover signed.

To be honest, insurance offered by banks is often more expensive than the products offered by certain insurance companies. Always compare before signing!

Understanding to make a better choice

If your banking advisor proposes lowering the interest rate subject to signing home insurance with their agency, that means they already have the commercial capacity to offer a lower rate: it’s up to you to negotiate!

Banks have to diversify the products they sell to their customers so they become “locked in”, loyal and less likely to think about switching to the competition due to all the administrative constraints which can be daunting at times. But, bear in mind you also have a commercial relationship with your bank. If you wish to make good choices, it’s always best to take your time and compare offers not only in terms of costs, but, also and above all, the types of guarantees covered by each offer.

Yet, spending time comparing or negotiating is clearly a loss of time for many of us expatriates and we often prefer to accept the packages proposed by our banks.

So, here’s a little advice... Take your time before signing and compare different banks to check the quality of their offers.

Home insurance suggested by your banking advisor is never mandatory, but it can influence the rate on your loan... Even still, make sure you have all the information on the cover offered as well as the prices charged for the same insurance by the competition.

> By now, you probably understand that we advise you to never act too soon on insurance but rather inform yourself well with regard to the prices charged by the competition on the home insurance market in Portugal.

To help you with your loan negotiations, you should know the “real market price” of home insurance: the best way is to seek the advice of a broker.

In fact, in the event of a claim, a broker like INOV Expat is there to file and manage it, find a way to quickly help you (repairs, taxis... depending on the incident, etc.) and, especially when needed, defend your rights as a customer against the insurance company. Note that INOV Expat and all of its collaborators are expatriates: so, they are particularly knowledgeable of your problems and are all multilingual.

So, you’ve got a question about the home insurance you took out with your bank: don’t panic as you’ve got time to compare and you can cancel it upon the renewal date if necessary just like in England!

Why can INOV Expat really help me with my insurance?

You probably now understand that insuring you property means taking the time to ask good questions and compare offers. But, it’s not always so easy to know who to trust with these types of guarantees when you arrive in a new country and haven’t got the time to handle all the administrative issues and even less so when you still aren’t proficient in the language...