In addition to providing our full range of Title and Warranty & Indemnity Insurance products in Italy for commercial properties, we also provide specialty insurance products through our affiliate, Titolo Sicuro (www.titolosicuro.it)
This policy covers risks relating to properties, usually residential, which had been donated, usually to a relative but also to third parties, charities, etc.
Under Italian law, a donation is treated as an early inheritance distribution, and rights of certain family members are protected in respect of the inheritance distribution (“forced heirs”). Consequently, if these family members believe that the donation has affected their share, they are entitled to claim the difference from the donated estate under law. If the recipient has sold or mortgaged the property and so is not in a position to return it to the estate, the forced heir(s) are entitled to claim against the new owner or mortgagee.
The insurance covers the circumstance where a claim is made against the new owner or mortgagee.
The policy beneficiary can only be either a) the purchaser of the property or b) the owner of a right of lien e.g. a mortgagee.
Successione Sicura covers the same issue as Donazione Sicura, but the inheritance is a result of the will of the deceased owner of the estate, rather than due to a donation made during the owner’s life.
The rules of forced heirship ‘legittma’, apply in exactly the same way to the inheritance of property via a will as they do to donated property. Consequently, the Successione Sicura will cover the same circumstances, that is, the interests of a third party buyer (or mortgage lender).
The applicable articles of the Italian civil code that protect the distribution of donated or inherited estates do not distinguish specific asset class (e.g. property). Consequently, the type of risk and profile seen for donated real estate is the same for other donated assets, and this policy covers donations of shares in private limited companies.
The policy covers the risk that a third party purchaser of donated shares is required to reimburse the forced heirs of the estate for the value of the shares.
Donazione Sicura Leasing is effectively the same as Donazione Sicura, but the Insureds are institutions leasing donated real estate properties to third parties. The institutions, at the inception of the leasing contract, are the freeholders of the property.
Thus the risk being covered is that the institution may be required to reimburse the forced heirs of the estate some sum represented by the value of the property. The beneficiary of the policy is the freehold owner of the property.
Many leasing contracts in Italy are structured to give the tenant ownership after the contractual term of the lease agreement. Following a balloon payment at the end of the lease agreement period, the tenant becomes the freehold owner of property.