Life and health insurance with mortgage alliance. What happens if the insurance is overdue? The procedure for terminating an insurance contract at Sberbank

Life and health insurance for mortgage- another type of insurance that you may be offered with a mortgage. Many borrowers rightly ask: Is life insurance required for a mortgage? and is it legal for banks to impose it at all?

The answer to this is already spelled out in the law - when purchasing a home on credit, ONLY insurance of the collateral (i.e. apartment, house, townhouse, room, etc.) is mandatory. Life and health insurance is voluntary.

However, almost all mortgage programs provide for an increase in the mortgage interest rate if you cancel life insurance. Here you already need to consider how it is more profitable to take out a mortgage. It often turns out that a mortgage with insurance is more economical than a loan at a higher interest rate. Do not forget that refusal of insurance may result in bank refusal without explanation.

What does life insurance provide for a mortgage?

A mortgage is a long-term loan, so banks try to reduce their risks as much as possible. But life and health insurance also gives the borrower confidence in the future, so before refusing insurance, you need to know exactly what risks it covers and how it works.

Insured events in life insurance:

Disabling injuries

Disability 1st and 2nd groups

If one of these circumstances occurs, the insurance company covers the bank's losses, while the apartment or other housing remains your property or the property of your family.

If an insured event occurs, you must notify the bank about this by providing a medical certificate or death certificate.

Life and health insurance, unlike title insurance, lasts for the entire term of the mortgage. Payment for insurance occurs once a year and amounts to a certain percentage of the REMAINING debt, that is, the amount of the contribution decreases every year.

If you attracted co-borrowers and guarantors, then your life insurance does not apply to them and they need to take out life insurance separately!

Life insurance for a mortgage: cost and where is it cheaper?

Calculation of the life insurance rate for a mortgage happens strictly individually! The interest rate range for insurance is wide: from 0.5% to 2.5% of the amount of mortgage debt. Considering that a mortgage loan is valued in hundreds of thousands and millions, even one percentage point is a serious overpayment or savings.

Each bank works with several insurance companies, so you can familiarize yourself with all the rates and choose the company that is cheaper. It is better to communicate with specialists in person (although there are special calculators on the websites of insurance companies), since the cost of life insurance is calculated taking into account many parameters.

How is mortgage life insurance calculated?

An increase in the rate on life insurance rates for a mortgage occurs under the influence of the following factors:

Age (the older the borrower, the higher the interest rate)

Presence of chronic diseases (medical examination will be required)

For men the rate is higher due to lower life expectancy

If you work in a hazardous industry or in hazardous conditions

For a large loan amount and a long mortgage term

Presence of bad habits, non-standard height and weight ratio

Important! Do not try to hide the presence of diseases from the insurance company; if this fact becomes clear when an insured event occurs, then you or your relatives will be denied compensation.

Refund or refusal of life and health insurance on a mortgage

As mentioned above, refusal of insurance entails an increase in the bank’s interest rate from 0.5% to 3.5%. Therefore, when refusing insurance, you need to calculate the benefits or losses for various mortgage programs.

One of the categories of borrowers who refuse insurance are military personnel whose life and health are already insured due to their occupation. However, with a military mortgage, the bank still offers to take out a policy, since in this case the insurance company covers the bank’s damage, and in the first case, the borrower or relatives receive compensation.

If you have already taken out insurance, but suddenly realized that you are overpaying, then you can return the mortgage life insurance policy within a few days (be sure to read the terms of return in the contract).

A separate point in calculating insurance is partial early or full repayment of the mortgage. You need to contact the insurer to recalculate the annual payment or to return unused funds upon full repayment.

There are pitfalls here, READ THE CONTRACT: in some cases, insurance companies do not provide for early termination of insurance. It is very important to clarify this point at the stage of applying for a policy.

Mortgage life insurance return practically impossible if the bank was the policyholder (for example, when purchasing an insurance package). In this case, you do not enter into an agreement with the insurance company, but only with the bank. Accordingly, when returning part of the funds or completely canceling the policy, you need to communicate directly with the bank. Since the insurance contract is concluded between two legal entities, and not with you, these relations are governed by other rules of law. In this case, it is extremely difficult to obtain compensation even through court.

You need to know about such nuances of life and health insurance for a mortgage in advance and carefully study all the documents being signed.

Tax deduction for mortgage life insurance

By law, every taxpayer can return a tax deduction for voluntary insurance. You can return 13% not only from the amount of personal insurance, but also from the amount of the spouse (who is a co-borrower on the mortgage).

Conditions under which the deduction is due:

The contract term is 5 years or more (some insurance companies enter into a new contract annually, with such a policy it will not be possible to return interest)

The insurance company has a license for this type of activity

The borrower paid for the insurance from his own savings.

The insurance amount is specified in the contract in a separate column

The borrower has a document confirming payment of insurance premiums

The borrower is a taxpayer and a citizen of the Russian Federation

The maximum amount for insurance refund per year is fixed and is 120,000 rubles. That is, from this amount they will return you 13%

Get a tax deduction for mortgage life insurance CANNOT: students, military, foreigners, orphans under 24 years of age, persons living on income from folk crafts

Documents for issuing a policy

Application for insurance

Mortgage agreement

Health certificate (if required)

Banks, when providing a loan to purchase real estate, not only issue a mortgage on it, but also require mortgage insurance. Purchasing a property insurance policy is a requirement of any mortgage agreement. What about other types of insurance?

General understanding of what mortgage insurance is

Mortgage insurance is a set of types of insurance that are designed to protect the financial interests of each participant in residential mortgage lending.

The need to conclude such agreements is due to the need:

bank - in obtaining loan repayment guarantees, which allows reducing the interest rate and increasing the loan term relative to consumer loans;
the client - in obtaining financial security for the ability to fulfill their obligations in the event of death, disability, decrease in income, and other things.

The main purpose of mortgage insurance is to redistribute risks between insurers, borrowers and lenders in order to increase the reliability of the mortgage insurance system.

Types of mortgage insurance:

insurance of property under a mortgage, which according to the agreement was pledged, against the risks of loss or damage;
personal, which is life and disability insurance of the client (borrower or co-borrower);
title is insurance against loss of title to collateral as a result of termination of ownership.

As an additional option, insurers offer to insure the civil liability of the premises owner against:

by third parties during the operation of the property (for example, from cases of flooding of a neighbor’s apartment);
by the creditor for failure to fulfill accepted financial obligations (if there is a delay, if it is impossible to make payments in the future).

Features of this type of insurance

Mortgage risk insurance differs in that the beneficiary under the contract is the lender (bank). In the event of an insured event, the insurer will make an insurance payment in his favor. Its size cannot exceed both the amount of the outstanding debt and the amount of damage incurred.

There is a scheme for paying the insured amount in a lump sum - immediately - upon concluding an agreement for the entire loan term. A more common scheme is the annual payment of the insurance amount.

Do I need to insure my apartment every year if I have a mortgage? Yes. This is specified in the loan agreement.

Legality of requirements for concluding insurance contracts

Real estate insurance for a mortgage: mandatory or not – debates have been going on for a long time, but there is a law and there is judicial practice.

According to Federal Law No. 102-FZ “On Mortgages,” mortgage borrowers are required to insure the collateral. The document does not say anything about other types of insurance.

Personal insurance for mortgage Art. 935 of the Civil Code of the Russian Federation is defined as voluntary. However, banks strongly recommend that their clients take out such insurance. It is optional, but its absence will result in an increase in the loan rate by at least 1%.

A similar situation has developed with regard to title insurance. The client has the right to refuse, but the loan, since it is more risky from the lender’s point of view, will be offered to him on other, less favorable terms than to those borrowers who agreed to fulfill the bank’s requirements.

Judicial practice in relation to such disputes indicates that in most cases the requirement to conclude a life and health insurance contract is recognized as an abuse of freedom of contract, since they refused to issue a loan without obtaining insurance.

According to the Directives of the Central Bank of the Russian Federation dated November 20, 2015 No. 3854-U, the borrower has the right to refuse the insurance product imposed on him within 5 days from the moment of signing the relevant documents. The amount paid by him must be returned in full.

However, the Central Bank of the Russian Federation explained that if the borrower refuses this service, the lender has the right to change the terms of the standard agreement and increase the interest rate.

This clause is already included in most mortgage agreements. Lenders also widely use their right to terminate the mortgage agreement unilaterally due to the client’s failure to comply with its terms. This provision is also stated in the loan documentation. The bank sends a notice to the client requiring him to either take out insurance, or he will terminate the contract. The latter means that the borrower is obliged to repay the entire loan amount or face legal proceedings.

Citizens' appeals (usually during legal proceedings) to the fact that the requirement for insurance violates their rights are not accepted: the agreement was concluded under certain circumstances, about which the client was warned in advance.

Signing the documents means agreement with the fulfillment of the requirements established by them.

Typical insurance cases

Insurance of a real estate property typically assumes as an insured event:

fire, including one that occurred outside the insured property;
household gas explosion;
disaster;
flooding that occurred as a result of an accident in the water supply, sewerage or heating system, even if the water came from neighboring premises;
illegal actions of third parties (hooliganism, robbery, vandalism);
falling of aircraft (parts thereof) onto real estate;
identification of structural defects in the structure, which were unknown to the policyholder at the time of concluding the contract.

You need to be prepared for the fact that the minimum package offered by insurers provides for payments only when the insured property has suffered significant damage.

For example, if your neighbors' wallpaper was damaged as a result of a flood, there will be no payment, but if someone breaks a window, you can count on compensation for its cost. The entire loan balance will be paid only when the object is completely destroyed. In the case of a private house, if the foundation remains, then only part of the debt will be repaid, because, from the insurer’s point of view, the rest of the building can still be used to build new housing.

To get more guarantees and more compensation, you should take out more extended insurance, but it will cost more.

The next type of mortgage insurance is life and health insurance of the borrower. Insured events under such a contract are:

death of the insured due to an accident or illness that occurred during the period of validity of the contract;
loss of ability to work as a result of illness or accident with the assignment of 1 or 2 disability groups.

What is title insurance for a mortgage is easier to understand from the list of insured events under the following contracts:

recognition of the sale and purchase as invalid (based on clause 2 of Chapter 9 of the Civil Code of the Russian Federation);
demand from the buyer of housing (in whole or in part) by persons who retain ownership of the property.

This type of insurance is designed to protect the rights of a bona fide purchaser. Confirmation of the occurrence of an insured event will be a court decision. Payments under such agreements should compensate the borrower’s financial costs and guarantee the lender’s repayment of the loan.

In such cases, the insurance company has the right to provide full legal support, including representation of the client’s interests in court.

The problem of receiving insurance payments

The insurer has the right to refuse to pay insurance compensation in a number of cases. All of them are specified in the insurance contract.

Personal insurance for mortgage lending involves, as an insured event, the identification of the borrower with the 2nd or 1st disability group or his death. In this case, the payment is made in full as a one-time payment. In the first case, the property remains the property of the borrower, in the second it will be included in the inheritance estate and the heirs will receive it without any encumbrance (without collateral or the obligation to repay the loan debt). But for example, compensation under a life insurance contract will be denied if death occurred as a result of suicide or a car accident in which the policyholder was at fault. They will not pay compensation in cases where the client initially knew about health problems, confirmation of which the insurer will find in his medical records, but did not inform about this when concluding the contract.

There will also be problems with compensation for persons who have suffered from professional risks, as well as for those in whose blood at the time of the insured event alcohol or drugs are found that were not prescribed by a doctor. According to the law, the insurer in such a situation is not obliged to repay the debt.

If life and health insurance was taken out in relation to both spouses-co-borrowers, then in the event of the death of one of them, the debt to the bank will be repaid only by half, i.e. by 50% of the loan balance. If the insurance was made taking into account certain proportions, then the payment will be made taking into account how it was stated in the contract. For example, in the event of the death of one of the spouses, compensation may be 70% of the balance, while in the event of the death of the other - 30%.

In cases where there is no firm certainty that the insurance company’s refusal is correct, it is worth contacting a lawyer specializing in this area.

Already at the first consultation, having studied all the documentation, the specialist will be able to confirm or refute the legality of the insurer’s actions and suggest the advisability of protecting their interests in court.

How to save on mortgage insurance

The insurance program offered by the lender's employees is, as a rule, a product that is unprofitable for borrowers. Most banks act as intermediaries between the true policyholder, the organization with which the contract is actually concluded and which will subsequently make insurance payments if necessary, and the client. Accordingly, the lender most likely receives a discount from the “supplier” and at the same time makes an allowance to cover its own costs.

As a result, an insurance contract concluded in a bank office may turn out to be 10-20% more expensive than an agreement drawn up on the same terms either with the insurer itself or with its other official partner.

If you decide to purchase insurance directly from the insurer, check with the lender for a list of accredited companies. Despite the fact that any restrictions when choosing an insurance company are unacceptable by law, they can be established in spite of them. Therefore, it is wiser to check with the bank for a list of accredited insurers.

Considering that the insured amount is calculated based on the loan balance plus interest that will be accrued over the next year, savings are possible due to early repayment of the loan.

The faster the mortgage debt is repaid, the less interest the borrower will pay, the less the insurance amount will be.

You should also consider the loan repayment date. Ideally, you need to determine the deadline for full repayment of the loan by the time the next insurance contract expires. If this does not work out, then you can, by obtaining a corresponding certificate from the creditor about the absence of debt, contact the insurer with a request to return part of the insured amount according to the actual time of existence of the loan obligation (debt to the bank).

How to properly insure yourself with a mortgage so as not to overpay. When determining the sum insured, insurers take into account:

client's age. The policy will be cheaper for people who are 25-35 years old;
the price of the property - the more expensive it is, the more the insurer needs to pay;
with personal insurance, they may be asked to undergo a medical examination, based on the results of which the cost of the policy will be determined. The fewer health problems a person has, the fewer bad habits he has, the greater the discount he will be given;
The larger the loan amount, the larger the insurance amount will be assigned for payment.

Summary

Mortgage insurance: required or not? An insurance contract for collateral property is required. The rest - formally no; in fact, the bank indirectly (through deterioration of lending conditions or even refusal to conclude a mortgage agreement) forces clients to agree to this requirement.

From a financial point of view, sometimes it is a little more profitable to agree to an increase in the loan rate, but refuse additional insurance.

Interest is accrued regularly on the debt balance, which decreases as payments are received to repay the loan, i.e. monthly or even more often. When determining the insured amount, the amount fixed at the beginning of the year is taken into account.

A reasonable solution to this issue is to comply with the lender’s request, but enter into a mortgage insurance contract directly with the insurance company.

The benefit of the borrower with mortgage insurance is that if an insured event occurs, although the bank will receive the payment, the citizen will be released (partially or completely) from the obligation to pay the mortgage.

In difficult times, which are designated in insurance as insured events (loss of property, disability, etc.), this can come in very handy.

Taking into account the above, we can say that a mortgage is a risky project for the borrower and the insurer. The bank, if it has a full package of insurance and collateral, risks less.

What is real estate insurance when taking out a mortgage? Where can I get mortgage insurance cheapest? How much does it cost to insure an apartment with a mortgage?

Hello, dear readers! Welcome to the online magazine “HeatherBober” and I, insurance expert, Denis Kuderin.

In a new article I will talk about mortgage insurance. The material will be useful to everyone who purchases housing with a mortgage, as well as to those who are interested in current financial issues.

And now - in detail and in detail on each point.

1. What is mortgage insurance and when is it needed?

Buying real estate with a mortgage is a risky and lengthy undertaking. Loan amounts are repaid over the years - no one can predict in advance how the situation with debt repayment will change in six months, a year, five years.

For this reason, both parties to the mortgage agreement try to protect themselves from possible losses. To reduce the risks of borrowers and lending companies, the state has introduced a mandatory condition when applying for a mortgage - insurance.

Some believe that mortgage insurance takes into account only the interests of lenders: banks want to protect themselves from the borrower losing their solvent status.

However, such insurance also brings certain benefits to loan recipients. After all, no one can guarantee home buyers the availability of a permanent income, especially in conditions of permanent economic instability.

Every borrower can lose their job, get sick, or get into an accident. And the apartment itself may suffer from fire, flooding and other unforeseen factors.

In addition, full mortgage insurance will help you get a loan on more favorable terms: banks are much more loyal to clients who choose the full range of insurance services.

So, mortgage insurance– This is insurance against the risks of lenders and borrowers. In modern Russian lending, this is a mandatory procedure when purchasing a home with a mortgage.

No financial institution will issue you a loan without taking out a policy. At the same time, real estate (collateral) insurance acts as a guarantee of security for the lender, and health, life and solvency insurance of the borrower protects the interests of the client.

Thus, both parties are interested in the transaction. Another thing is that bank employees know much more about insurance than the average citizen and often insist on contract terms that are most favorable and beneficial specifically for the financial organization.

That is why it is useful for loan recipients to study the issue of mortgage insurance in advance - this will reduce unnecessary expenses and help protect their property interests.

By law, the borrower is required to insure only the collateral. All other types of insurance are optional.

But this is in theory, but in practice banks usually require borrowers to insure along the way:

life;
ability to work;
title(ownership of real estate).

Whether to agree to the creditors’ terms or not is a personal matter for everyone. For obstinate clients, the bank can easily increase the mortgage interest rate.

The policy term is equal to the expected payment period. The insured amount is equal to the size of the loan or the market value of the home. Payments are due once a year. When the time for payment approaches, the bank informs the company of the current amount of debt, and the insurer calculates the amount of the premium.

2. Classification of mortgage insurance - TOP 3 main types

Since the object of the mortgage agreement is real estate, it plays the main role in insurance procedures. Other types of mortgage insurance are only auxiliary products aimed at reducing additional risks for lenders and borrowers.

However, it is worth researching all types of mortgage insurance.

Type 1. Home insurance

Mandatory type of insurance when applying for a mortgage. The property is insured against damage and complete destruction. If an insured event occurs, the mortgage is paid off by compensation for damage from the insurer.

Insured events include:

fires;
natural disasters;
domestic gas explosions;
accidents of sewer and water supply systems;
illegal and hooligan actions of third parties;
vandalism.

The policyholder is obliged to immediately notify the insurer of the occurrence of such cases and file an application with the company. Each incident requires expert verification and confirmation.

Example
There was a fire in the apartment, which damaged the structural elements of the home. Losses are compensated not by the owner of the apartment, and not by the bank with which the housing is pledged, but by the insurer. True, evidence must be presented that the fire was not the result of deliberate actions of the borrower or other interested parties.
Not all cases of damage and destruction of real estate fall into the insurance category. For example, if an apartment was damaged as a result of military operations, a nuclear explosion, mass strikes and pogroms, the insurer has the right not to pay losses.
View 2.
If the policyholder is unable to pay the mortgage due to serious illness, disability, serious injury or disability, the insurance company undertakes to compensate the bank for the loss.
In the event of the death of the borrower, the insurer releases relatives and friends from loan payments and assumes debt obligations. The insurance does not apply if death or disability is the result of intentional self-harm or suicide. Injuries sustained while intoxicated or under the influence of drugs do not count.
This type of insurance is optional and you can refuse it if you wish. However, banks often do not leave borrowers a choice: either they insure life, or the loan rate will be 1-3% higher.
View 3. Title insurance
Title insurance protects the interests of banks that may be affected if the borrower loses title. Such insurance is not issued in all situations, but only in cases where the lender identifies additional risks when studying documents for housing.
Example
A year after purchasing a home on the secondary market, it turns out that the seller’s son, who was absent from the city at the time of the transaction, has the right to own it. Litigation on this issue may drag on for many years, but any losses of the bank will be covered in a timely manner by the insurer.

The title insurance contract is concluded either for 3 years or for the entire loan term.
More information on housing protection issues can be found in the articles “” and “”.
3. How to insure your mortgage - 5 simple steps
Every self-respecting bank has a pre-compiled list of insurance partners to which managers refer borrowers.
Citizens should remember that choosing an insurer is their personal and voluntary matter. Any loan recipient has the right to refuse insurers recommended by bank employees and choose a company at their own discretion.
Why is it important? It's simple - tariffs differ from one insurance company to another, sometimes significantly. Meanwhile, even tenths of a percent in relation to mortgage amounts over the years turn into tens of thousands of overpaid rubles.
So - be careful.
Step 1. Finding a suitable insurance company
When choosing an insurer, act with extreme caution. Study the situation on the insurance market in advance. Reliability, solvency and the terms of insurance themselves are important.
Other important parameters:
experience as an insurer;
price policy;
rating according to independent organizations;
availability of preferential offers and promotions.

Any way to reduce the interest rate on contributions is worth using. It is advisable to act through an insurance broker - a professional who will select the most profitable options for you.
Additional information is in the article "".
Step 2. Selecting the type of insurance
Just a couple of years ago, when issuing loans, banks required compulsory insurance not only of the property, but of the client’s life and ability to work.
However, Rospotrebnadzor saw this practice as a violation of consumer rights and demanded changes to the Mortgage Law. Now the only mandatory item for the borrower is insurance of the collateral (that is, the apartment itself).

All other types of insurance are a matter of personal choice of the client. In practice, borrowers are not always able to achieve compliance with their rights. So, if you refuse life insurance, be prepared for pressure from bank employees.
At a minimum, the manager will give you a lecture on the importance of comprehensive insurance; in the worst case scenario, your mortgage rate will be increased. Banks cannot directly refuse to issue a loan due to refusal to insure their ability to work and life. But it is in the client’s interests to give in to employee requests if there is a direct danger of an increase in the commission.
Step 3. Determining possible risks
Disability and health insurance is especially important for people who, at the time of taking out a mortgage, already have serious chronic illnesses that are fraught with dangerous complications.
In such cases, the risk of non-payment of the loan actually increases, and purchasing comprehensive insurance is a truly advisable and necessary step.
Economic risks should also be taken into account: for example, if you are not confident in your employer, it is better to protect yourself from losing your position and main source of income.
Step 4. Collecting documents
Mortgage insurance is issued quite quickly.
Standard list of documents:
borrower's passport;
bought/sold agreement;
certificate of ownership of the apartment;
medical certificates about health status (if necessary);
application (questionnaire).

Sometimes the insurer requests additional papers - certificates from the BTI, extracts from the house register, a real estate appraisal report.
Step 5. We sign the agreement
When signing an agreement, first study all its clauses. Even the small print and notes deserve attention.
Remember that a mortgage takes years or even decades to pay off; every omission in the insurance contract is potentially damaging to your pocket. Unaccounted tenths of interest on the contribution eventually translate into thousands of rubles.
So I repeat - be careful! Banks and insurers act in their own interests, your task is to protect your own finances and property.
4. What determines the cost of mortgage insurance - 4 main factors
The cost of a comprehensive insurance package is calculated as a percentage of the loan amount. In different companies this figure varies from 0.5 to 1.5% per year. It will be even more expensive if you insure each risk separately.
Tariffs are calculated individually for each client. The amount of insurance is influenced by many factors – let’s look at the most important of them.
Factor 1. Gender and age
For young people, the cost of insurance is minimal. Men always pay slightly more for insurance than women. This is standard practice when taking out any policies. Tariffs are also affected by the profession of the policyholder. The more dangerous it is, the higher the coefficient.
Factor 2. Health status of the policyholder
For life insurance, you will need a medical certificate of health. If the company becomes aware that the client has concealed information about the presence of a serious illness, payments may be denied in the event of an insured situation.
The questionnaire contains items regarding bad habits and lifestyle. It is better to answer such questions as objectively as possible - there will be fewer problems with representatives of insurance companies in the future.
Even height and weight indicators are taken into account. If the ratio is higher or lower than normal, tariffs also increase.
Factor 3. Housing type
When insuring real estate, the type of housing matters. The condition and material of the floors, the status of the apartment, the number of rooms, the geographical location of the apartment, the presence of a gas stove and other objective indicators are taken into account.
Factor 4. Loan size
The larger the loan amount, the higher the interest rate on the insurance premium. As the loan is repaid, this figure decreases because the total amount owed decreases.
The table will give a more clear idea of the formation of prices for insurance services:
5. Offers for mortgage insurance on the best terms - review of the TOP 5 companies providing services
Dozens of large and small companies provide mortgage insurance. Your financial security directly depends on the right choice of insurance partner.
We offer an overview of the five most reliable Russian insurers.
A universal insurance company with many years of experience. The company was founded in 1947. It is constantly included in the TOP 10 best insurers in the Russian Federation. It occupies the highest positions in official and “popular” ratings. It has subsidiaries in Armenia, Uzbekistan, Ukraine and other countries. A mortgage insurance policy can be issued and paid for online. All types of mortgage insurance are available, plus insurance for real estate purchased under a military mortgage.
Experience since 1921 (the company is the legal successor of the state structure Gosstrakh). Affordable insurance products for all occasions. The highest rating from independent rating agencies. Protection of real estate and the health of mortgage borrowers, fast issuance of a policy, consultations with specialists by phone and online. The company has offices in almost every major locality in Russia.
3) "RESO-Garantiya"
An experienced company operating since 1991. Offers more than a hundred insurance programs for individuals and legal entities. Repeated winner of the most prestigious insurance award in Russia “Golden Salamander”.
Performs quick registration of policies and provides consulting support. It has an extensive network of branches and provides the opportunity to issue a policy online. Offers all types of mortgage insurance. There is currently a “Profitable Mortgage” promotion.
4) "AlfaStrakhovanie"
A company with the highest rating “A++” from the Expert agency and branches throughout Russia. A huge selection of affordable and effective insurance products, efficiency, customer consultations by phone and online. Quick policy registration in the company's offices or via the Internet. The company offers citizens who already have mortgage insurance to change their insurer and get a policy on more favorable terms.
5) "VTB Insurance"
A successful participant in the insurance market, operating since 2000. Operational insurance of property, life, health, civil liability on favorable terms. Large annual volume of payments and insurance fees. Leader in mortgage insurance. Reliable protection of mortgage loans and collateral real estate. Benefit and confidence in the future for the bank and the borrower.
We recommend that you contact us at all stages of insuring your deposits and when working with companies that provide deposit insurance services. This will reduce the risk of making mistakes in this important issue.
6. How to save on mortgage insurance - 3 simple tips
A mortgage insurance policy will cost less if you use our helpful tips.
Tip 1. Avoid unnecessary insurance services
As mentioned above, when insuring a loan, it is mandatory to protect the collateral itself - that is, an apartment, house or other real estate.

Home insurance for a mortgage with Sberbank is an official requirement of the lender. It is justified by the legislation of the Russian Federation and is issued by the bank to minimize its own financial risks. Insurance of an apartment under a mortgage with Sberbank is a mandatory procedure. In addition, if desired, the client can voluntarily:

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take out life insurance with Sberbank for a mortgage;
buy an apartment title insurance policy (in case title is lost through no fault of the borrower).

When choosing a lending program, people usually focus on the bank’s reputation and the requirements that must be met to obtain a mortgage. However, the total loan amount will also depend on the insurance program.

Life and health insurance is not required by law to obtain a mortgage. However, clients who refuse this type of service increase their chances of receiving.

Title insurance is issued purely at the personal request of the borrower, and the bank does not insist on purchasing it.

Thus, the final cost of a mortgage product can consist of three types of insurance:

an apartment that is purchased with a mortgage is required;
the life of the person who is purchasing real estate – preferably;
title of the apartment (loss of ownership for one reason or another) - at the discretion of the client.

Insurance of property purchased with a mortgage is a mandatory condition of any mortgage agreement. The Federal Law of the Russian Federation states this.

First of all, this is beneficial to the credit institution that issues the loan.

For the client, insurance increases the financial burden, since in addition to interest for using the loan, he also has to pay insurance premiums.

What is it for?

The essence of the policy is that in the event of unforeseen circumstances and loss or damage to the apartment, the obligation to pay the damage falls on the insurance company. The policy provides for various cases of damage or complete destruction of property due to fire, explosions, natural disasters, robbery, flooding to neighbors, and so on. Thus, an apartment insurance policy is beneficial:

Sberbank, since it guarantees the return of funds from the insurance company’s money;
The client, as it saves him from paying unexpected huge costs for repairs or restoration of his home.

Cost in 2019

The cost of apartment insurance depends on the condition of the home (the year the house was built is important) and the price of the apartment. The insurance company makes individual calculations for each client.

You can choose two options:

the policy is purchased for the total cost of the apartment;
The policy is purchased for the amount that remains to be paid to the bank.

The average rate is 0.225% per annum of the amount of loan obligations. For example, if an apartment costs 3 million rubles, the down payment was 1 million rubles, and the policy is purchased for the amount owed, then the insurance will cost 4,500 rubles.

IMPORTANT: the policy is valid for exactly 1 year. After the expiration of the term, you can use the extension or apply for it again with another company. Each year, a policy is purchased by paying an annual premium.

Apartment insurance benefits are not provided to any categories of persons. The rules are the same for all borrowers.

Life and health insurance

Life and health insurance when applying for a mortgage, according to the agreement with the bank, is not a mandatory condition. However, Sberbank insists on purchasing this service in order to reduce its own risks from non-payment of the loan by the client. Some pressure from the credit institution, despite the official voluntary purchase of the service, is seen in the strict rules for setting the interest rate on the loan. If life insurance is not taken out, the interest rate increases by 1%.

Purchasing an insurance policy places additional financial burdens on the client, and the amount is greater than compulsory apartment insurance. Taking into account the above rule of Sberbank, and taking into account the advantages, it is worth thinking about purchasing this service.

What is it for?

A life and health insurance policy guarantees the return of borrowed funds to the bank in the event of loss of health or death of the borrower. Considering the considerable terms and amounts of mortgage lending, it is quite reasonable for the bank to try to protect itself from such risks. For the borrower, this policy guarantees that in the event of accidents, his loan obligations will not fall on the shoulders of guarantors and close relatives, since the debt will be repaid by the insurance company. In addition, if the client is temporarily unable to work, then his loan will be paid by the insurance company during this period (upon provision of evidence of health status). Thus, taking into account the coverage of possible risks and the fact that if insurance is refused, the bank will still increase the interest rate, it is worth thinking about purchasing it.

Cost in 2019

In fact, the stumbling block in matters of life and health insurance is the very fact of the need to purchase a policy, but the fact that Sberbank forces the client to buy it from certain companies at not very favorable rates. Firstly, he has his own subsidiary company, Sberbank-Insurance, where they are forced to purchase policies. Secondly, the lender limits the organizations choice to its own, stating that other policies will not be accepted. However, at the moment things are not as bad as before. The list of Sberbank's partners has been increased to 19 organizations, so the client can choose where life insurance for a mortgage is cheaper in Sberbank, having previously studied the tariffs and compared prices.

Often people face pressure from the manager of Sberbank, who insists on purchasing services from the Sberbank-Insurance company, where interest rates are quite high. But the loan agreement clearly states that you can do this in any organization accredited by Sberbank. Therefore, feel free to look for where it’s cheaper, get insured and present your policy.

The cost of the policy depends on the amount of debt and risk parameters. There are various risks that can be included in the policy:

death;
complete loss of ability to work;
partial loss of ability to work;
loss of work for reasons beyond the control of the client.

Sberbank Insurance offers the following programs:

Standard life and health insurance program – 1.99% per annum;
Health and job loss insurance – 2.99%;
Program with the ability to independently select parameters – 2.5%.

So, let’s calculate how much the policy will cost, for example, if the client wants to choose the parameters on his own. We will transfer the cost of the apartment from the previous example, so the calculation will be for the amount of debt of 2 million rubles. We multiply two million by the interest rate of 2.5% and get the amount of 50,000 rubles per year. The amount is not small. This is why people look for companies where insurance is cheaper.

Having searched for information and studied the list of insurance organizations - partners of Sberbank on its official website, you can find tariffs of 1%. In this case, insurance would cost 20,000 rubles. in year.

Title Insurance

Condo title insurance refers to insurance on the title of the property. If, for some reason, a borrower who pays a mortgage for an apartment suddenly loses his rights to it (usually this happens through the court), then the insurer assumes all financial responsibilities for paying off the debt. This way the client won't have to pay for something he doesn't own.

A borrower who bought an apartment with a mortgage may lose ownership rights in the following cases:

errors were discovered in the execution of documents and the transaction was declared invalid;
new copyright holders have appeared whose legal interests were not taken into account when drawing up the agreement (spouse, minor children, other legal heirs of property, etc.);
the person on whose behalf the transaction was made has been declared incompetent by the court (he is not responsible for his actions);
fraudulent sales schemes were used.

Thus, purchasing title insurance is most relevant for secondary housing, since you are most likely the first owner of an apartment in a new building. However, you should not relax, as there are often unscrupulous developers who grossly violate housing delivery deadlines or carry out sales through various illegal schemes.

The question of whether to insure the title or not is decided by the borrower independently. This is not a mandatory clause of the loan agreement. It can be purchased in place of life insurance.

Price

The average rate is usually not high, varying between 0.3% - 0.5% per annum. Thus, for mortgage lending in the amount of 2 million rubles, the insurance amount will be 6,000 - 10,000 rubles.

How to get insurance

To purchase a policy, you must contact the insurance company with a package of relevant documents. For each type of service, the list of required documents will be slightly different. Mortgage insurance at Sberbank is issued using the following documents:

passport;
application of the appropriate sample;
a completed questionnaire (required to assess the degree of risk);
documents confirming ownership;
certificate of registration of property rights;
documents on expert assessment of the apartment;
extract from the technical (cadastral) passport of housing;
medical report on health status;
a certificate from a psychiatric and drug treatment clinic (stating that you are not registered with them).

The registration procedure is simple. After reviewing the documents, you will need to sign an agreement. As soon as you pay the insurance premium, the policy will be issued to you.

Thus, the total cost of the mortgage product consists not only of the amount of borrowed money and interest accrued for using the loan, but also of the insurance premiums that the borrower will have to pay throughout the entire period of the mortgage, purchasing a policy every year. By taking out insurance for the first year and refusing to renew it, a Sberbank client risks problems in the form of an increase in the interest rate on the loan or a requirement for early repayment of the loan due to failure to fulfill agreements. If, for security reasons, the client decides to buy all three types of insurance (apartment, life and title), the total fee per year will be an additional 2.5 - 3% of the loan amount.

Replies to popular

Question: what documents are needed to insure an apartment with a mortgage from Sberbank?

Poll: are you satisfied with the quality of services provided by Sberbank in general?

YesNo

Answer: the main documents include the borrower’s passport, an application form and documents that confirm ownership of the object, as well as a state certificate of registration of rights. An expert’s opinion on assessing the condition and value of real estate, a cadastral and technical passport of the apartment may also be required.

Question: is it necessary to insure an apartment with a mortgage from Sberbank?

Answer: yes, a mortgage loan cannot be issued without apartment insurance. The justification is the Federal Law of the Russian Federation “On Mortgage”. Apartment insurance benefits are not provided to any categories of persons.

Question: is it necessary to renew life insurance for a mortgage with Sberbank?

Answer: If you rely on the law, then life insurance when taking out a mortgage is not a prerequisite. In practice, the bank insists on purchasing this policy. If the client refuses, the interest on the loan increases by 1%. If you have not renewed your life insurance, prepare for the above measures from the bank.

Insurance provides protection against various damages and destruction as a result of emergency circumstances:

fires,
flooding,
explosions of gas and heating devices,
accidents of engineering systems and equipment,
damage to glass structures,
natural disasters,
various illegal actions.

The main purpose of insurance is make mortgages more affordable for a larger number of solvent citizens. Having a guarantee that the loan will be repaid, banks reduce the down payment and interest rate, soften the requirements and conditions for their clients.

According to real estate insurance is mandatory for the borrower. This is explained by the large loan amount and the long repayment period, during which anything can happen to the property.

Title insurance

Title insurance is insurance that protects against loss of ownership of the purchased property if in the future, by a court decision, the transaction is declared illegal or invalid in the following cases:

identifying errors or fraud in the preparation and execution of documents confirming ownership (agreement, contract);
acquisition of real estate from a person who does not have legal rights to dispose of this property;
execution of a transaction by an incapacitated or minor citizen;
acquisition of an apartment that is or is under arrest;
the appearance of unaccounted for rights holders or persons in prison.

Some apartments have a long and opaque chain of ownership transfer, so there is no certainty that the transaction will not be challenged in court in the future.

Sometimes the risks are so great that the insurance company refuses to conclude a contract.

If an insured event occurs, the cost of lost property, as well as legal and additional costs specified in the contract, are reimbursed.

The title insurance rate is in the range of 0.1−1% and depends on the number of previous transactions with the apartment subject to insurance, as well as the completeness and quality of the documents provided. The contribution amount is constant throughout the duration of the contract. The maximum insurance period is usually three years.

When issuing a mortgage loan, the client is required to insure the title, and if the borrower refuses to purchase the policy, the interest rate may be raised or a number of additional requirements may be introduced.

The procedure for insuring an apartment with a mortgage

Once the bank has approved your mortgage loan application, it is recommended that you do the following:

Choose an insurance organization, preferably from among the bank's partners.
Collect a package of documents:
- contracts confirming the transfer of ownership (privatization of an apartment, purchase and sale, exchange, inheritance, donation);
- certificates of state registration;
- conclusion of the appraisal company on the value of the apartment;
- extract from the house register. Specify the preliminary cost of insurance and the list of necessary documents for its registration. As a rule, you will need title documents to verify the purity of transactions with an apartment in the past:
Write an application at the office of the insurance company and submit copies of the necessary documents.
Wait for your insurance application to be approved (this usually takes several days).
Draw up an insurance contract. As a rule, it is signed the day before or on the day of signing the mortgage loan agreement.
Pay the insurance premium.

Cost of insurance

Almost all banks cooperate with several large insurance companies who have been successfully operating in the market for many years and have extensive experience. Typically, a client taking out a mortgage loan is asked to choose an insurer that is a partner of the bank. It is advisable to familiarize yourself with the insurance conditions of several companies and find out the preliminary cost of the policy by calling or visiting their office.

The estimated cost of mortgage insurance for an apartment is 0.1−0.6% of the insured amount. The tariff is calculated individually for each borrower and depends on the general condition of the house and apartment, the year of construction, the size and term of the mortgage. As the loan is repaid, the annual insurance premiums will decrease.

On the websites of some insurance organizations you can calculate the estimated price of the policy for the first year using a simplified calculator. For example, this opportunity is provided by RESO-Garantiya link.

Contributions are made annually, and the insurance period is basically equal to mortgage payment deadline. If the mortgage loan is repaid ahead of schedule, it will be possible to terminate the contract with the insurance company and return part of the money already paid. In case of partial early repayment, the contribution amount is recalculated. It is important to pay for insurance on time, since if there is a debt, the company may not pay compensation.

What you need to pay attention to in an insurance contract

One of the most significant points in the agreement is sum insured(maximum possible compensation in an emergency). She may be equal the cost of the purchased apartment or the amount of debt on a mortgage loan(some banks also add interest to this amount). In the first case, the insured amount is constant during the period of validity of the contract, and in the second, it gradually decreases due to the repayment of debt.

Borrowers often insure their apartment at market value. In this case, the cost of the policy will be higher, but in the event of an emergency, the down payment can be returned. The market price of an apartment is calculated by appraisal companies taking into account the cost of similar real estate, its wear and tear and general condition.

The next important point of the agreement is list of insured events The wider it is, the better for the borrower.

It is recommended to pay special attention to insurance premium payment schedule, since if there are late payments, the company may terminate the contract, and the bank has the right to demand that the borrower repay the mortgage early.

Your actions in the event of an insured event

Need to be notified urgently credit institution and insurance company on time specified in the contract and clarify the further procedure for your actions.

It is important to know that violation of the established deadline may be a reason for refusal to compensate for losses.

It is recommended to report the occurrence of an emergency only in writing.

After this, they go to the scene of the incident insurance company representatives, inspect the property in your presence and collect all the necessary documentation that will be required to compensate for losses (for example, a conclusion from the Ministry of Emergency Situations or the police).

A certain time specified in the contract is allotted for consideration of your application and verification of the authenticity of documents confirming the occurrence of an insured event. If a criminal case is initiated, insurance payments may be delayed.