The Federation of Insurance Brokers Fecor calls on financial entities to allow insurance compensation to be allocated to the repair of affected homes and businesses, instead of using them to cover mortgage payments, in order to facilitate a more agile and fair recovery.
The Federation of Associations and Professional Organizations of Insurance Brokers and Brokers of Spain (Fecor) has asked financial entities to allow insurance compensation to be allocated to the repair and reconstruction of properties and businesses damaged by the recent DANA, instead of using them to guarantee mortgage payments.
Fecor warns that the right of banks to collect compensation directly or to keep it in deposit could hinder the recovery of thousands of affected people. According to the organization, these practices, covered by some loan contracts and by article 40 of the Insurance Contract Law (LCS), could leave citizens and companies without the necessary resources to face urgent repairs.
The disastrous effects of DANA
The recent DANA has caused havoc in various regions of the peninsula, leaving a significant economic impact. According to the Bank of Spain, the consequences reach 20,000 million euros, affecting 472,000 mortgages and 23,000 companies.
Alberto Ocarranza, president of Fecor, highlights the need for joint action between financial entities and authorities:
“Fecor appeals to the social sensitivity of banking institutions. In catastrophe situations like this, it is essential that compensation be allocated as a priority to reconstruction. This would not only accelerate the recovery of the affected areas, but would also reaffirm the commitment of the sector with the people and families hardest hit by the tragedy.
The Federation insists that prioritizing reconstruction over debt repayment is a key measure to support the social and economic stability of those affected and guarantee a faster and more efficient recovery.
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