The cheapest mortgage insurance. Comprehensive mortgage insurance - rules, company offers and cost
When buying an apartment on a mortgage, a bank client has something to worry about, in addition to insurance, but it is still necessary to carefully approach the execution of the policy - so as not to bite your elbows later.
Credit insurance is one of the engines of the entire market: both life and nonlife. It is on him (in addition to OSAGO) that customers most often complain. The reason is not only that between the insurance company and the client there is a “layer” in the form of a bank, but also in the complexity of this type. Usually, the bank requires to insure not only the collateral object itself (an apartment or a house), but also the life of the borrower, as well as the right of ownership (title). Both the seller (bank) and the "service provider" (insurance company) are interested in imposing the maximum package on the client. And the client, who is already paying interest on the loan, naturally wants to minimize costs. Let's figure out what is mandatory from the mortgage package, and what can be waived.
Let's begin with the only type of mortgage insurance required by law is pledge insurance - in accordance with Federal Law No. 102 "On Mortgage (Pledge of Real Estate)". Article 35 of this law states that if the continuity of insurance is violated, the bank has the right to demand early fulfillment of loan obligations, that is, the return of the entire amount.
Question sum insured- a separate topic, and a very important one, since the amount of payment under the contract depends on it. As a rule, in most contracts sum insured equal to the body of the loan (sometimes plus 10-15% to guarantee that it will cover everything, including penalties for late payments). This amount decreases with the body of the loan from year to year. The rule is valid regardless of whether you entered into an agreement immediately for the entire term of the loan or only for a year with subsequent renegotiation.
However, it is worth considering the possibility of expanding the amount indicated in the policy, up to the full market value of the apartment. Otherwise, if you lose your home, you will not be able to return your down payment on the loan. You can conclude an additional insurance contract not only for the construction, but also for the decoration of the apartment, as well as for the property inside it. It is recommended that you also include third party liability insurance, since the damage caused to neighbors from an accident in your apartment is naturally not included in regular property insurance. And paying the loan and paying the neighbors for refurbishment can be too much of a burden for the mortgage lender.
Life and title insurance not required by law, so in theory they can be waived. In practice, most banks offer a “preferential” (reduced) interest on a loan when concluding a comprehensive mortgage insurance agreement. And if you refuse to insure life, then you can be offered such a rate that you don’t even want a loan. Renunciation of life and title insurance can reduce the insurance premium by 60-80%, but usually a bank rate increase of even 1.5-2 percentage points negates the savings on this part of the insurance.
In addition, the risk of the borrower's death and loss of ability to work / disability, in my opinion, is still worth insuring so that debts to the bank do not fall on the shoulders of heirs or relatives who are forced to support the person who has lost their ability to work.
If the bank requires you to issue a policy in a particular company, this is a violation of the Federal Law "On Protection of Competition" and the Decree of the Government of the Russian Federation No. 386 - you can safely complain to the FAS. In any case, you should have a choice of insurance companies accredited by the bank.
That is, in theory, you can provide when applying for a loan already current contract life insurance with a term of at least loan agreement and for an amount not less than the body of the loan. However, in reality, the bank is unlikely to accept a previously concluded contract with an unaccredited company. First, the insurance documentation (policy and rules) of your personal agreement most likely differs from the one agreed by the bank. Secondly, the bank will definitely not be satisfied that you are the beneficiary, and not him.
Besides set of risks in a standard life insurance (LI) policy may differ from that required by the lender. For example, in relation to credit insurance some state-owned banks require mandatory inclusion in the contract of the risk of temporary disability, which is not included in the basic set of life insurance risks (death for any reason, death from an accident, disability of groups I and II for any reason and as a result of an accident).
Can be negotiated with a company contract rider for insurance additional risks. For example, cancer insurance or against terrorist attacks (usually these risks are not included in the standard coverage of the SJ). Many mortgage lenders assume that the policy purchased at the time of the loan covers risks such as a broken finger or a burn. However, this is misleading. If you have not entered into an accident insurance contract, you are not entitled to any payments - the finger will have to be treated at your own expense.
It should be noted that for any additional agreement you are the beneficiary, not the bank. And here is the standard contract for your life insurance and collateral is always in favor of the bank: upon the occurrence insured event your loan will be repaid, and you or your heirs will receive the rest of the amount.
An optional, but desirable type, at least in the first three years, which is usually included in the mortgage package, is title insurance, that is, property rights. It is necessary in case the contract for the sale of an apartment is invalidated for some reason.
Many banks do not mind taking out title insurance for only the first three years of owning a property. However, at the same time, you need to understand that if the owners of the apartment who did not participate in the transaction, but who had rights to it (for example, illegally bypassed during privatization), appear, then the risk of losing it will fall on you. According to paragraph 1 of Article 181 Civil Code RF, term limitation period for claims to recognize a transaction as invalid is three years - if one of the participants in the transaction protested it. However, if a claim is brought by a person who is not a party to the transaction, the limitation period cannot exceed ten years from the date of the transaction.
Refusal of title insurance will give you the opportunity to save about 0.15% of the loan amount per year (that is, with a loan body of 5 million rubles - about 7,500 rubles). So decide for yourself if it's worth the risk.
Mortgage credit lending It is now a fairly common way to purchase your own home. Each borrower has already encountered or heard about insurance with such a loan. Sometimes it turns out unpleasant surprise, as it forces the client to fork out additionally. However, life and health insurance for a mortgage, although not mandatory, but, according to most experts, serves as a "safety cushion" for both the borrower and the bank.
A mortgage life insurance policy obliges the insurance company to pay off the mortgage debt in the event of an insured event with the borrower. Repayment can be partial or full.
Expert opinion
One of the inexpensive and reliable insurance companies in 2019 is Ingosstrakh. The list of services provided by the company also includes mortgage life insurance. You can familiarize yourself with the conditions and apply for insurance on the official website of Ingosstrakh.
That is, this insurance covers certain risks, namely:
- Death of the borrower. In this case, it is necessary to apply to the insurance company during the term of the contract, but not later than 1 year from the date of the fatal accident or illness.
- Obtaining a disability of 1 or 2 groups. You should contact the insurer no later than six months after the end of the insurance contract.
- Finding on sick leave over 30 days. Depending on the insurance company, the payment is made either immediately or after the sick leave is closed.
In the first two cases, the insurance company pays the entire amount of the current debt. And with a long sick leave, the calculation is made daily at 1/30 of the loan payment. Life insurance gives the borrower a guarantee that in the event of a loss of working capacity, the insurance company will continue to pay his debt, and no debt will arise.
Important point: there may be situations when, after the disability insurance payment, the borrower died. Then there are no more payments. And if at first the client was on sick leave and the insurance company transferred loan payments to the bank, and then disability set in, then payments are due for it. But from total amount sick pay will be deducted.
To insure a co-borrower and be eligible to receive payments, it is required to take out the same life insurance policy for him. Otherwise, if an insured event occurs with the co-borrower, credit debt will not decrease, and will fall entirely on the shoulders of the borrower.
It is important for the borrower to know that the insurance company may refuse to pay in the following cases:
- The insured person has AIDS or HIV and is registered with a dispensary.
- In case of suicide (except for the case of incitement to suicide, which must be established by the court).
- If, according to the analysis of the blood of the deceased, it is determined that he used alcohol, narcotic substances.
- The insured person drove the vehicle without having the right to drive it.
- The insured event occurred in the course of the crime and this was proved by the court.
- The presence of a serious chronic disease at the stage of concluding an insurance contract, which the borrower hid.
Any of the above circumstances will lead to the fact that the insurance company will not close the debt to the bank. As a result, the borrower or his heirs (if they inherit) will have to pay off the mortgage.
Expert opinion
Alexander Nikolaevich Grigoriev
Mortgage expert with 10 years of experience. He is the head of the mortgage department at a major bank, with over 500 successfully approved mortgage loans.
Events such as the loss of a job, the death of a close relative (including a co-borrower, if a separate policy was not issued for him), salary delays cannot serve as a basis for contacting an insurance company. In these cases, the borrower should contact the bank directly for a possible loan restructuring, if necessary.
For the bank, this type of insurance is important because of the large credit debt, besides, mortgage loans are characterized by a long term. No one can say with certainty what will happen to the client after a given period of time and whether he will be able to pay the mortgage.
The lack of insurance can lead to lengthy litigation in the future, and the bank is not always able to return the loan. There are many nuances in such disputes, in particular, it is impossible to take away the only housing from the borrower. Thus, for a bank, a life insurance policy serves as an additional guarantee that the money will be returned in any case.
Is life insurance required when taking out a mortgage?
The question of whether it is mandatory to take out life insurance with a mortgage is very relevant, especially if insurance payments are high. According to Federal Law No. 102 "On Mortgage" it is voluntary. Therefore, the bank cannot oblige the client to take out an insurance policy.
However, due to the increase in its risks, the bank may offer the borrower other, more stringent lending conditions. In particular, increase the interest rate, reduce the term, request a guarantee, etc.
In general, there are three types of mortgage insurance:
- Mortgage property insurance. It is required by law. The property is insured against destruction and external damage (eg earthquake, house collapse) for the entire loan term. For insurance of interior decoration and interior items, it is necessary to include this in the contract as a separate clause.
- Health and life insurance. Upon the occurrence of an insured event at any term of the loan agreement, the entire balance of the debt or part of it is assumed by the insurance company.
- Title insurance. If in the past there were contentious issues about ownership of mortgage real estate, then after the conclusion of the loan agreement, “unexpected guests” are possible in the form of applicants for the borrower's property. Title insurance just protects the interests of the bank in case of loss of ownership of the client. In addition, the borrower can also take out separate title insurance for himself to have a “safety cushion” in the form of payments from the insurance company if the property is legally unclean. The validity period of such agreements is always no more than 3 years, since after that, according to the law, all property disputes are not accepted by the courts. This mortgage insurance is not required, but the bank may require it if the property being purchased is in doubt.
Read also other articles from our experts:
Where is it better to take a mortgage in 2019, which banks have the best profitable terms, and how to make your mortgage as profitable as possible -.
When selling an apartment on a mortgage, you will definitely come across such a procedure as real estate appraisal. Why is it needed and how does it go, the essence of the procedure and the main features that you will encounter in the article at this link.
3 reasons to buy insurance
For the borrower, life and health insurance will ease his situation in case of possible force majeure. Otherwise, with partial or complete disability, you will have to solve the issue with a loan only on your own. The issued insurance policy allows you to count on a number of preferences from banks.
Of these, 3 main benefits for the borrower can be distinguished:
- Reduced percentage.
- No requirement for a mandatory guarantee.
- Smaller size down payment.
Of course, there are banks that offer mortgages without mentioning life insurance at all. But the decision in any case remains with the borrower. Tempting offers often hide higher commissions and interest, because in the absence of insurance, the bank has to reduce its risks in other ways. We advise you to take out a mortgage loan with life and health insurance, especially with a long repayment period.
Expert opinion
Alexander Nikolaevich Grigoriev
Mortgage expert with 10 years of experience. He is the head of the mortgage department at a major bank, with over 500 successfully approved mortgage loans.
The refusal of life insurance entails an increase in the interest rate on mortgages by 0.5-3.5% in different banks. More stringent requirements are put forward for the borrower, sometimes reducing the maximum possible loan amount, which does not suit all customers.
When choosing an insurance company, bank managers can persistently suggest a particular insurer. This is due to the incompetence of individual employees or due to the need to implement a plan for additional services. Meanwhile, the borrower can insure in any insurance company that meets the requirements of the bank, that is, accredited in it.
We recommend comparing the conditions and cost of insurance in several companies - the difference can sometimes be noticeable. Bank insurance is most often more expensive, but it can also be the other way around when the client is offered suitable conditions as part of special promotions or due to long-term cooperation with him.
The life and health of military personnel and some other categories of borrowers may already be insured. But to refuse such insurance in the bank still does not work. The fact is that under this insurance, the borrower himself or his relatives receive the payment, and the money may not be used to pay off the mortgage. The bank also needs to be the beneficiary (that is, the recipient of the insurance payment).
Where do mortgage insurance - top 5 companies
Consider the conditions of 5 popular insurance companies in which you can insure life and health for a mortgage. The comparison uses data from an authoritative rating agency"Expert RA" (raexpert.ru) from the financial reliability rating of insurance organizations providing life insurance services.
Ingosstrakh
One of the largest and most famous firms in Russian market. Rating agency "Expert RA" characterizes Ingosstrakh with high creditworthiness, financial reliability and stability (ruAA).
The organization has attractive mortgage insurance offers. There are Ingosstrakh offices even in small towns and villages. The site has a special calculator that will help calculate the cost of insurance based on various conditions.
After the calculation, the client will be offered to issue an insurance policy and pay for it online without leaving home. After payment, you will receive an e-mail with a policy certified electronic signature. The client only needs to sign it on his part.
Life and health insurance in Ingosstrakh has the following advantages:
- Large, stable and solvent company.
- Wide distribution in regions, small towns.
- Discounts for online registration. For example, for Sberbank customers, the organization provides a 15% discount when applying for a policy online.
- There is a convenient calculator for calculating the cost of insurance.
Insurance Calculator
You can calculate insurance on a special Ingosstrakh calculator, and apply for it online, directly on our website or on the website of the insurance company using this link.
For example, the annual cost of life insurance and disability insurance for a female borrower aged 35, for a mortgage taken from Sberbank at 10% for an apartment with registered ownership, with a balance of debt of 1,500,000 rubles, will cost 5,211 rubles (with a 15% discount) .
Calculate the cost of life insurance in Ingosstrakh
VSK Insurance House
A fairly large and well-known company with a moderately high level of reliability and financial stability (ruA +) according to the Expert RA rating agency.
It occupies the 7th place in terms of collections in the life insurance niche. The regional network has more than 500 branches and offices throughout the country. It is possible to apply for a policy online, but the rates are quite high.
Calculate the cost of insurance in VSK. The conditions are the same as in the previous example. The cost of insurance under the Protected Borrower program will be 5,100 rubles. However, the amount is not final and may change upwards when specifying additional data (weight, place of work, etc.) when filling out the questionnaire.
RESO Guarantee
The organization is engaged voluntary insurance from accidents and diseases, life insurance. The company's reliability rating, according to the Expert RA agency, ruAA+. An organization with a high level of reliability, creditworthiness and financial stability.
RESO-Garantia is a member of the All-Russian Union of Insurers and the Federal Self-Regulatory Union of Insurance Organizations. It is the only company that insures clients over 60 years of age. The official website has a handy cost calculator.
Having calculated the cost of insurance on a calculator with the same conditions, we get the amount of 3,555 rubles. The amount may change when you specify additional data for the execution of the policy. For Sberbank, the result is not valid, the cost will be higher.
Calculation of insurance in RESO guarantee
Sberbank life insurance
A subsidiary of Sberbank of Russia, was created to insure the life of its borrowers. The tariff line includes the “Protected Borrower” offer for mortgage clients. Allows you to reduce the Sberbank mortgage rate by 1%.
The Expert RA agency characterizes the company with the highest level of creditworthiness, financial reliability and stability (ruAAA). The rating outlook is stable.
Among the advantages, we highlight the reliability and stability of the company, the possibility of issuing a policy on the official website online with a 10% discount. The maximum debt balance is 1,500,000 rubles, if the amount is more, insurance is issued at a bank branch.
The downside is the high cost of the policy - 30-40% higher than that of other accredited insurers. The calculation on the Sberbank website shows that the cost of insurance under the same conditions will be 5,160 rubles.
The cost of life insurance in Sberbank
SOGAZ Life
Subsidiary of Gazprom and Rossiya Bank. A serious company with the highest level of financial reliability and stability according to Expert RA (ruAAA rating). It mainly accepts mortgage clients of Gazprombank, who have practically no chance of insuring themselves in another organization.
The company is actively developing classic long-term life insurance primarily for corporate clients, bank insurance life of borrowers, cooperating with banks, and long-term life insurance for individuals who are not employees of partner companies.
The basic life insurance rate for Sberbank is 0.21%. With an insured amount of 1,500,000 rubles, the cost of the policy for 1 year will be:
1,500,000 / 100% * 0.21 = 3150 rubles.
One of the most inexpensive options for Sberbank.
How much does mortgage life insurance cost and why can it rise in price?
On average, life insurance will cost the borrower 0.5–1.5% of the mortgage debt. The policy is usually issued for 1 year and extended for the next. With a decrease in the amount of debt, the amount of insurance will also decrease. The borrower also has the right to change the insurance company.
The cost of the policy and the tariff for each borrower is determined by a weighted assessment of a combination of factors:
- Floor. For men, the risk for this factor is higher, so when there is a choice of whom to put as a borrower and who as a co-borrower, it is better to put a woman in the first place. The policy will cost 30-50% cheaper. However, there are companies that do not attach significant importance to gender when withdrawing the final amount for an insurance policy.
- Age. Older people have a higher risk of death or illness, and therefore the tariff for them is higher. The difference in rates between a 25 year old and a 50 year old client can be 5-10 times. Borrowers over the age of 60 are generally denied life insurance.
- The presence of chronic diseases. They increase the cost of insurance.
- General health. A medical certificate is required from the client. Any deviations to one degree or another affect the multiplying factor. Therefore, most clients prefer to remain silent about illnesses. We recommend that you do not hide the truth from the insurer, since concealment of illnesses can serve as a basis for refusing an insurance payment.
- Excess weight. Insurance will definitely be higher for borrowers with a greater weight.
- Profession. The more risky and dangerous it is, the higher the tariff will be. The risk of an accountant and an employee of the Ministry of Emergency Situations differs significantly. It is generally difficult for the latter to find a company that will agree to insurance.
- The presence on hand of an already existing life insurance policy, where the beneficiary is not a bank. Doesn't count for everyone credit institutions, but it will not be superfluous to provide it.
- Credit amount. The higher it is, the more multiplying coefficients are used by insurance companies.
- Commission of the bank. Some banks cooperate with insurance companies and take a commission for attracted customers. Some want 20-50% of the cost of the policy from the insurer, others do not earn money on this at all, it all depends on the bank.
How much life insurance will cost is determined and taking into account the nuances of a particular insurance company. Marital status, the presence of children, other debt obligations, property, etc. can be taken into account.
Comprehensive insurance (life, title and bond) is usually cheaper. Borrowers should be warned to take out a life insurance policy before the mortgage is approved. Otherwise, if the bank refuses, it will be impossible to return the money paid.
"My home is my castle"
We know how difficult and responsible it is to decide to buy a home. Mortgage provides a real opportunity to fulfill the dream of improving housing conditions.
Mortgage insurance is a reliable protection for the borrower mortgage loan from the risks associated with damage or loss of property, termination and / or restriction of ownership of property, as well as causing harm to life and health. The insurance company will help fulfill the obligations of the borrower of a mortgage loan to the bank in case of unforeseen circumstances*.
The insurance covers "structural" elements damaged due to:
Design defects
Natural Disasters
Falls of aircraft (space) vehicles
Falling solids
Vehicle collision
Illegal actions of third parties
Title insurance: Risks associated with the termination and / or limitation of your ownership of the acquired property:
Termination of ownership (For example, as a result of the recognition of the transaction as invalid on the basis of a court decision).
Restriction (encumbrance) of property rights ( For example, as a result of retaining the right to use property for third parties after registration of ownership (based on judgment )).
Title insurance is especially important if the property is purchased on the secondary market. There are cases when, after the acquisition of real estate, it turns out (and the policyholder did not know about it before) that the rights of third parties (unrecorded heirs, minor children, previous owners, etc.) were violated in the last or previous transactions. And then, by a court decision, the borrower's transaction may be declared invalid. From these and other cases of termination, as well as restriction of property rights mortgage borrower can protect title insurance.
Personal insurance: Insurance against damage to life and health of the borrower and co-borrowers as a result of accidents and/or illnesses.
Insurance risks under the contract are:
Death due to any cause
Initial determination of disability of group 1 as a result of an accident or illness
Mortgages are usually taken out for a long period of time. Personal insurance of the borrower will help ensure the fulfillment of obligations to the bank in case of unforeseen circumstances related to the life and health of the borrower and co-borrowers.
** We can offer you coverage for a combination of risks, depending on the loan program you choose. Usually, for the most complete protection, borrowers choose a package from all of these risks.
PROGRAM COST***
Tariffs for each agreement are set individually based on the analysis of documents on the property in pledge, and data on the borrower (and co-borrower).
Property insurance - from 0.12% of the sum insured per year.
Property title insurance - from 0.21% of the sum insured per year.
Personal insurance - from 0.125% of the sum insured per year.
For example, the rate for a 30 year old male/female who has no health problems would be 0.2427%/0.1463% of the sum insured for that year.
*** The insurer has the right, based on the results of the analysis of the degree of risk when concluding individual insurance contracts, to apply adjustment factors to insurance rates and individual conditions insurance.
HOW TO SIGN AN INSURANCE CONTRACT
For your convenience, we have organized the work process in such a way as to save your time and effort.
When concluding an insurance contract when issuing a mortgage loan:
All contacts with the insurance company will be made through your mortgage manager
You do not have to bring documents to the insurance company - everything Required documents will be sent for you by a bank employee.
· You can sign and pay for the insurance contract at the time of the mortgage transaction.
When prolonging the insurance contract:
· The invoice will be sent in advance to the email address you provided in your insurance application. Pay insurance premium You can in any bank, having previously printed out the invoice.
The insurance service is provided by SOCIETE GENERAL Life Insurance LLC, Insurance licenses SL No. 4079 and SL No. 4079 were issued by the Central Bank of the Russian Federation for an indefinite period, and SOCIETE GENERAL Insurance LLC,Insurance licensesSL No. 1580 and SI No. 1580 were issued by the Central Bank for an indefinite period.
For Property Insurance (Risk of loss or damage to property) and Title Insurance (Risk of termination (loss) or limitation (encumbrance) of ownership of property), the insurer is SOCIETE GENERAL Insurance LLC.
For life insurance of the borrower in case of death for any reason, the insurer is SOCIETE GENERAL Life Insurance LLC.
Borrower's health insurance in the event of an initial determination of Group I Disability - jointly by SOCIETE GENERAL Insurance LLC and SOCIETE GENERAL Life Insurance LLC (co-insurance).
According to Rosstat, more than 60% of Russian citizens buy apartments on credit. Most banks at the conclusion mortgage agreement insist that the borrower take out a comprehensive insurance policy. In case of refusal of a citizen interest rate loan increases by 3-5%.
What is comprehensive credit insurance
The use of residential real estate is accompanied by various risks. Comprehensive mortgage insurance protects a citizen from a sudden loss of a job, damage to an apartment or house during operation.
In the event of an insured event, the borrower will receive money to pay for the loan, commensurate with the damage received
.The comprehensive policy includes the following types of insurance:
- the object of lending (constructive);
- title;
- life and health of the borrower;
- liability of an individual for non-repayment of a debt.
Advantages and disadvantages
Comprehensive mortgage insurance is positioned by lenders as an obligatory part of any real estate transactions. From an economic point of view, this procedure is more beneficial for banks, because. they will be able to receive funds issued for temporary use in the event of an insured event. Comprehensive insurance characteristics important for the borrower:
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What risks are insured
The policy covers certain situations. Mortgage insurance does not cover risks associated with military operations, nuclear explosions and radioactive radiation. At the time of buying secondary housing it is imperative to insure the construct and the title, but some lenders require that the policy includes windows, plumbing and other home decoration elements. Such requirements greatly increase the price of the contract. Comprehensive insurance covers the following types of risks:
Type of insurance for comprehensive insurance | Types of risks |
Insurance of the object of credit |
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Borrower life and health insurance |
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Title defense |
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Protection of the borrower's liability for non-repayment of the debt |
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Reimbursement amount
The citizen who draws up the policy must find out in advance at the institution about the procedure for issuing money in the event of an insured event. The amount of compensation for a mortgage for a specific type of risk is specified in the contract.
The bank will receive the maximum monetary compensation (100% of the remaining debt) after the death of the borrower due to an accident, while the rights to real estate will be transferred to the heirs of the insured
.The amount to be reimbursed is calculated in 2 ways:
- According to the "first risk" system. The actual damage is assessed by the insurer's employees and compared with the sum insured. If the liability exceeds the amount of losses, taking into account the depreciation of the object, the insurance is paid in full. Otherwise, the payment will be equals cost damage.
- According to the system of "proportional responsibility". According to this calculation method, the proportion coefficient is calculated, and then the amount of damage is multiplied by it. For example, the amount of losses is 400,000 rubles, and the insurance amount for a mortgage is 2.6 million rubles. The actual value of the object is 3.5 million rubles. The proportion coefficient is calculated as follows: 2.6 million rubles. divided by 3.5 million rubles. Its value is 0.75. The final payment amount will be 400,000 * 0.75 = 300,000 rubles.
Terms of comprehensive mortgage insurance
A citizen must follow the points of the signed agreement in order to receive monetary compensation. This is one of the main conditions for concluding contracts with any insurers. You can insure several risks in agencies that are partners of the lender. Their list should be issued by the manager. You can also find the names of agencies on the website of the selected bank. Comprehensive mortgage insurance is provided on the following terms:
- the borrower informs specialists about the circumstances that significantly affect the occurrence of an adverse event;
- before issuing a policy, a citizen provides information on all transactions with the selected real estate;
- individual answers questions in detail insurance agent for risk assessment;
- Changes to an already concluded insurance contract can be made if they do not contradict the current legislation.
The procedure for issuing a policy
Regardless of which company the mortgage is taken from, the comprehensive insurance procedure will be as follows:
- Preparation of documents required to obtain a policy. Almost all insurers require a citizen to undergo a full medical examination, and it takes a long time. Before visiting the company, the borrower must obtain a mortgage lending agreement. Based on it, the cost of the policy will be calculated.
- Visiting an insurance company with a package of documents and filling out an application. Before signing, you must carefully read all the clauses of the contract, familiarize yourself with the procedure for calculating and providing compensation.
- Payment and receipt of the finished policy.
To conclude a contract, a citizen must submit the following documents:
- a copy of your passport and passports of guarantors;
- statement;
- certificate of state registration ownership;
- mortgage agreement;
- a certificate from the BTI;
- floor plan buildings;
- extract from the house book;
- a copy of the sellers of the property (if the transaction is concluded with individuals and not by the developer);
- appraisal act indicating the market value of housing;
- contracts related to the acquired object.
The cost of comprehensive mortgage insurance
The average tariff is 1-1.5% of the loan amount. The price of mortgage insurance includes title (0.2% per annum), property insurance (0.3%), life and health insurance (0.5%). The following factors influence the rate:
- age and health status of the borrower;
- the number of real estate transactions;
- the condition of the property;
- the amount of the mortgage;
- term of insurance.
The final cost of insurance is determined by the rules of a particular company. If the borrower decides to take out several policies, then the total costs will be higher. The policyholder has the right to change the terms of the agreement after signing the contract, but this will also be accompanied by additional costs. The cost of comprehensive insurance in some Russian banks:
Name of the bank | The cost of insurance against the amount of the loan | Insurance companies |
Sberbank |
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Raiffeisenbank |
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Alfa Bank |
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Video
Buying an apartment or country house with the help of a mortgage loan - a modern way to realize the dream of owning your own home. Mortgage lending is offered by almost all big banks. Each bank or mortgage company has its own requirements. We are ready to offer a flexible program of comprehensive mortgage insurance that takes into account the requirements of any bank. This will protect your interests throughout the life of the mortgage loan.
Why do you need insurance?
If you are unable to repay the loan due to temporary or complete disability - we will pay it.
If your property is damaged and needs repairs, then in repayment of your loan, we will pay the bank money in an amount equal to the damage caused.
If for any reason you lose ownership on the purchased property, then we will pay the bank the rest of your loan. You can insure real estate and property rights not only for the amount of the loan, but also for the actual (market) value of the property. In case of loss of property, such insurance protection will allow not only to repay the loan, but also reimburse all your expenses for the purchase of an apartment, cottage or house.