Sample life insurance contract for Sberbank mortgage. Mortgage insurance at Sberbank
When choosing a mortgage lending option, you also need to study the question of how to insure the purchased home. How much does mortgage insurance cost at Sberbank, is it mandatory, what does it affect, and what are the conditions for its registration? And also, whether it is possible to arrange its return - you can find out about this from the article.
Many people are interested in the answer to the question: is it necessary to take out insurance when taking out a home loan?
Today, only mortgaged housing is subject to compulsory insurance. These are the conditions of any financial institutions, confirmed by the law of the Russian Federation. This is primarily due to the need to reduce risks.
In case of damage or complete loss of property, the borrower is entitled to an insurance payment in the amount specified in the contract, which is redirected to the bank to pay off his debt. Therefore, the policy is in favor of the bank.
Each bank cooperates with a specific insurance company, and Sberbank has its own subsidiary - Sberbank Insurance.
List of insurance risks
Apartment insurance for a housing loan from Sberbank includes a standard list of risks that entailed complete destruction or damage:
- intentional damage or destruction of property by strangers;
- theft, robbery;
- flooding;
- fire, explosion;
- natural disasters;
Approximate list of risks in housing lending
The amount of coverage is determined by the client according to one of the options:
- The insured amount is equal to the price of the home. The value is determined based on expert reports and remains constant for the entire validity period.
- The amount is equal to the outstanding balance. As payments are made, its value decreases.
In this case, if one of these risks occurs, the insurer pays an amount equivalent to the amount of loss (damage) within the total amount, without exceeding it.
How is the sum insured determined?
Since a housing loan is issued for several years, and sometimes for 20-30, the mortgage insurance policy at Sberbank is issued anew every year. This is due to the duration of the contract, which is one year, after which it is subject to extension.
What percentage of the mortgage loan amount will you have to pay for insurance?
The amount of contributions is determined individually, but does not exceed 1% of the loan amount per year.
Voluntary life insurance for a mortgage at Sberbank
Unlike property security, personal insurance when taking out a housing loan occurs on a voluntary basis. Of course, it is more profitable for an institution to deal with an insured borrower, since this guarantees that the debt will be repaid under any circumstances. For the client, this is an opportunity to protect loved ones from their obligations if he himself has lost his previous financial condition due to an unforeseen event.
Life insurance risks
Sberbank's life insurance policy includes the following risks:
- death;
- loss of ability to work, disability, serious illness;
- short-term loss of ability to work due to illness or accident;
- involuntary job loss.
You can choose a set of risks at your own discretion or take a standard program. They differ in price and conditions.
Is the borrower required to insure life and health when taking out a mortgage?
Each situation has its own rules for reimbursement. Thus, in the event of death or disability, the insurance company fully repays the borrower’s debts. If the time period is short-term and the client has a certificate confirming his condition (for example, sick leave), the insurer makes his monthly payments to the bank during this time.
Advantages of concluding an agreement
To encourage borrowers to take out a voluntary policy, they are reducing the interest rate for mortgage loan insurance at Sberbank. The client receives a rate 1% less than with similar parameters without life security. For large loan amounts, this option is very profitable and also provides a guarantee for repayment of the debt if an unforeseen situation occurs to the client, which is quite possible due to the long terms of the home loan.
Thus, the client will need to conclude at least one insurance contract, and therefore it is worth knowing about the possibility of returning the funds spent after repaying the debt. Borrowers are rarely aware of it, and employees are deliberately silent about it, but the client has the right to receive paid insurance premiums for a period exceeding the mortgage period.
Refund of the insured amount – when possible
Thus, certain collection rules apply:
- After repayment of the entire amount, the validity period of the insurance contract is greater than or equal to 11 months - the borrower receives all the money paid earlier.
- Less than half the term has passed - the client is entitled to a payment within 50% of the funds spent.
- More than half of the validity period has passed - payment is often refused. If you want to get your money back, you will need to go to court. It is worth considering in advance whether such an action will pay off. The company will provide a list of costs where the client's funds were spent, and the balance may be very insignificant.
The return process is accompanied by the submission of an application and is confirmed by a bank statement indicating that there is no debt.
Documents for processing a return
Video - All about mortgage insurance
The video will inform you whether it is possible to do without life and apartment insurance when applying for a housing loan, and which options are more optimal for the borrower.
Conclusion
It is impossible to avoid insuring the property being financed: this procedure is enshrined in law. But as for personal insurance, the borrower has the right to refuse it. But first you should weigh all the possible risks associated with this decision.
Apartment insurance under a Sberbank mortgage is included in the list of mandatory conditions for obtaining a housing loan. Property insurance acts as a guarantee for a financial institution regarding the safety of the property in proper condition until the loan is repaid in full. Before you begin to draw up a mortgage agreement, you should carefully study the terms of insurance and other nuances of the procedure.
Clients interested in obtaining a mortgage loan from Savings Bank may be faced with a number of certain requirements, the fulfillment of which is considered mandatory for concluding an agreement. First of all, the official condition is home insurance for a mortgage with Sberbank.
Such a categorical requirement to insure collateral real estate is based on the bank’s desire to minimize its own financial risks. Insurance is issued in favor of the institution and guarantees the preservation of the good condition of the apartment throughout the entire duration of the contractual relationship. In case of property damage, the bank will become the beneficiary - the insurance will cover the losses incurred in an amount equal to the cost of the housing.
Such aspirations of financial organizations are quite justified, since at the time of the validity of the loan agreement anything can happen to the property - fire, flooding and other events of a destructive nature.
In addition, the requirement is regulated by law. The text of the federal mortgage law (paragraph 31) directly indicates the obligation of the loan recipient to fulfill the terms of the mortgage agreement. A clause of the agreement on the provision of a housing loan in Sberbank is the insurance of the purchased property in the event of partial damage or complete destruction in favor of the lender. Accordingly, you cannot refuse insurance.
Features of apartment insurance
If we talk about the benefits of insurance for the recipient of a targeted loan, the main point here is protection against various force majeure events - fire, natural disaster, etc. In the event of unexpected damage or destruction of the home, all costs are borne by the insurance company. It is from its budget that the cost of restoration work is covered or the full amount is paid to the bank, while the client’s pocket does not suffer in any way.
You should remember the following features of property insurance when purchasing it with a mortgage:
- The insurance covers the entire term of the housing loan agreement. However, the agreement most often specifies a period of 12 months. This is absolutely legal. 30 days before the end of the period, the insurance office or bank will notify the client of the need to extend the contract.
- The insurance amount will change annually, since, according to the rules, its value cannot exceed the loan amount. Accordingly, repayment of the loan in the current year will affect the insured amount in the next year. It will be reduced.
- If the mortgage is repaid and the insurance contract has not yet expired, the owner of the property becomes the beneficiary in the event of damage or loss of property.
- In case of early repayment of the target loan, the client has the right to terminate the insurance contract. The insurer does not have the opportunity to refuse a refund. In this case, you will need to write an application and submit a certificate from the bank confirming that the mortgage has been repaid in full.
The procedure for insuring an apartment can be carried out at any insurance company. In particular, Sberbank offers services to its subsidiary Sberbank Insurance. But the client’s right to independently choose an insurer remains with him.
Sberbank offers mortgage real estate insurance under 2 programs:
- the insurance policy is purchased at the total cost of the purchased apartment;
- insurance is issued based on the amount of debt to the financial institution.
Insurance highlights include:
- The following items are subject to insurance: windows, ceilings, walls, doors and other structural elements.
- What property is insured against - fire, gas explosion, lightning strike, natural disasters, damage as a result of various means of transportation, unlawful acts of unauthorized persons, housing defects during construction.
- Apartment insurance rates vary from 0.12% to 0.25% of the loan received. The cost depends on the general condition of the property, so the amount of insurance is directly determined by the fact how the property is purchased - from the developer or on the secondary market. The exact value can be found on the Sberbank website or by visiting your nearest office in person.
- The duration of the insurance contract is 12 months with the possibility of annual renewal. In this case, the amount of insurance will change in accordance with the remaining amount of debt on the loan. In other words, to a lesser extent.
An additional advantage is the possibility of annual renewal of insurance through the Sberbank website, but only for clients of the subsidiary company Sberbank Insurance. This is not possible during the initial execution of the agreement, but further prolongation does not require personal presence.
Also, in this case, there is no need to personally notify a Sberbank specialist about an increase in the validity period of the policy. The notification will appear in the system automatically.
Required Documentation
The list of documents for obtaining real estate insurance is quite small. The list includes:
- borrower's passport;
- housing loan agreement;
- agreement on the purchase and sale of property, but only with the initial execution of an insurance contract.
An application for a policy is prepared by a Sberbank employee responsible for preparing documentation for mortgage lending.
What else should you pay attention to?
Before signing an insurance contract, the borrower is recommended to clarify the following points:
- The amount of premiums charged to the insurer. For Sber clients the tariff is the same - 0.15% of the value of the property recorded in the appraisal report (not to be confused with the size of the mortgage loan).
- Amount of insurance coverage. This is usually equal to the loan amount plus interest.
- Prolongation conditions. The clause must be indicated in the text of the insurance contract.
- The opportunity to receive previously deposited funds in the event of early repayment of the mortgage loan. Financial organizations usually do not enter into disputes on such issues, but it is better to indicate this point in advance in the body of the agreement.
It is also important to remember that apartment insurance at Savings Bank is carried out according to a single program. In this case, there are no benefits for certain categories of citizens.
Home insurance for a mortgage loan from Sberbank is considered a prerequisite for obtaining a targeted loan - refusal to obtain insurance will result in a corresponding decision from the financial institution. The main recommendation to all clients in this case would be to first study all the conditions and nuances of concluding a contract. The agreement should be signed only after reading it carefully.
Nowadays insurance is often used for various property, which raises the question of how to pay for mortgage insurance in Sberbank Online. This option is convenient because you can pay money via the Internet, you can even use your mobile phone for this. You will need to follow the instructions to transfer funds. Note that it will be most convenient to use insurance from Sberbank itself if a mortgage has been issued at this financial institution.
About insurance
Many people take out a mortgage because they cannot buy an apartment right away. Considering the fact that the loan is taken out for a long period, on average 15-20 years, it is beneficial to take out insurance. During this period, anything can happen to both the person and the property that is pledged. If suddenly the house, for example, suffers from flooding, then part of the money will be reimbursed.
The lower the debt balance, the cheaper the policy will start to cost. Another plus is that you can quickly insure your mortgage by submitting an application on the website or contacting the bank.
You can take out insurance for the following: real estate, ownership, life and health of the borrower. If you take out a housing policy, it will include insurance of windows, doors, ceilings, partitions, and walls. Note that in private houses a roof and foundation are also added.
Important! Sberbank offers people to take out insurance, and this will be especially convenient for those who took out a loan from the same institution. Because thanks to this procedure you can reduce the annual loan interest by 1%.
The list of mortgage risks may include the following:
- Illegal actions from strangers.
- Natural disasters.
- Identification of design defects that could not be immediately detected.
- Large objects falling onto property, such as trees.
- Fire, gas explosion or lightning strike that resulted in loss of home.
- Flooding.
- Serious collision of a vehicle with a house or apartment.
- Other negative actions that do not depend on the owner of the property.
If we talk about human life, then the following cases are already included. Firstly, we are talking about loss of ability to work due to disability, bad surgery or serious illness. Secondly, this means the death of the borrower - relatives will not need to pay the mortgage. Thirdly, it is insured in case of job loss due to the liquidation of the company in which the person was employed.
Anyone who has a mortgage can take out an insurance policy, which they will later have to pay for in Sberbank Online. Of course, you will have to provide documents, both personal and property. You will also need to confirm that the person has a loan from a financial institution. Once the policy is issued, a person can receive it either at the bank office or by mail. After this, you should think about payment; by the way, for a year it can be only 4-5 thousand rubles.
Is it possible to pay for insurance through Sberbank Online
People often wonder whether it is possible to pay for insurance of their existing mortgage through Sberbank Online. Yes, this will indeed be possible if a person took out a loan from this institution. Because the price for the insurance policy is added to the mortgage itself, and the citizen will pay everything together. Now let's look at the procedure to make it easier to go through the procedure.
Although we are talking in this article about Sberbank, most of what is written, except for the list of accredited insurance companies, is relevant for any Russian bank.
Insurance for items purchased (apartment, house, room, etc.), unlike personal insurance, is mandatory. This is directly stated in Article 31 of Federal Law No. 102 “On mortgage (pledge of property)”:
1. Insurance of property pledged under a mortgage agreement is carried out in accordance with the terms of this agreement. An insurance contract for property pledged under a mortgage agreement must be concluded in favor of the mortgagee (beneficiary), unless otherwise specified in the mortgage agreement or in the agreement giving rise to a mortgage by force of law, or in the mortgage.
2. In the absence of other conditions in the mortgage agreement on insurance of the mortgaged property, the mortgagor is obliged to insure at his own expense this property in full value against the risks of loss and damage, and if the full value of the property exceeds the amount of the obligation secured by the mortgage - for an amount not less than the amount of this obligation .
Actually, from this law it follows:
- Housing purchased with a mortgage and pledged to the bank must be insured.
- Compulsory insurance applies only to the risks of loss and damage to collateral (fire, natural disaster, damage to load-bearing structures, etc.)
- The beneficiary under such an insurance agreement must be the bank. It is the bank that will receive the insurance payment if an insured event occurs. The amount of the borrower's debt will be reduced by the amount of the payment.
- The amount for which the object must be insured (the insured amount) must be no less than the principal amount of the loan.
For example, an apartment costs 3 million rubles, the down payment will be 1.4 million rubles, and the loan amount, accordingly, will be 1.6 million rubles. This is the amount (no less) that needs to be insured for the apartment in the first year of the mortgage. This amount will then decrease as the mortgage is paid off.
- You need to insure your property for the entire duration of the mortgage, as long as you pay it off and as long as the property is pledged to the bank. At the same time, the standard contract period for insurance companies is 1 year. Therefore, every year you need to conclude a new insurance contract.
The insured amount, as mentioned above, will decrease. Therefore, before renewing the insurance contract or concluding a new one, check with the bank about the exact amount of the principal debt on the mortgage.
The cost of insurance, or premium, is measured as a percentage of the sum insured, which, remember, is usually equal to the amount owed on the mortgage. The size of the insurance premium is also affected by the property itself.
For new brick houses it will be less, and for old Stalin buildings with wooden floors, naturally, more.
Ingosstrakh traditionally has some of the most attractive rates for mortgage property insurance. You can calculate the amount of insurance directly on the website.
If we take average figures, the insurance premium for this type of insurance is 0.3% -0.6% of the amount insured. Translated into rubles, it will be from 3,000 to 6,000 rubles. for every 1 million rubles. loan debt.
List of accredited insurance companies in Sberbank
Each bank has its own requirements for insurance companies, in which borrowers need to insure collateral real estate. Therefore, before purchasing a policy, be sure to check the list of insurance companies.
Below are the names of insurance companies accredited to insure collateral property with Sberbank. Not to be confused with!
Current as of February 2018:
- "Liberty Insurance"
- "Chulpan"
- "Transnational insurance company"
- "SF "Adonis"
- "Insurance company "SDS"
- "Insurance company "DIANA"
- "Insurance Company "Helios"
- "Insurance group "Spassky Gate"
- "Sterkh"
- "SOGAZ"
- "SO "Surgutneftegaz"
- "Sberbank insurance"
- "RSHB-Insurance"
- "Rosgosstrakh"
- "RESO-Garantiya"
- "REGIONGARANT"
- "BET"
- "Independent Insurance Group"
- "National Insurance Company TATARSTAN"
- "Ingosstrakh"
- "Zetta Insurance"
- "Renaissance Insurance Group"
- "VSK"
- "AlfaStrakhovanie"
- "AIG"
- "Absolute Insurance"
As you can see, the list is quite impressive - 26 companies, so you can easily select an insurance company on conditions that suit you.
Leave questions and feedback in the comments.
There is no one company that would be equally cheap to insure for everyone. Every country has its own approach to risk assessment and tariff policy. Therefore, advice from friends or forums that you managed to obtain insurance at a profit somewhere will not always be useful to you. You can find the best option only by requesting a quote from all accredited insurers. Take advantage.
1. Do not agree to issue a policy at the bank itself
The first obstacle on the path to cheap home insurance awaits the borrower already in the bank itself in the person of the credit manager, who quite persistently persuades him to take out a policy right there in his own company called Sberbank Insurance. Naturally, both the bank itself and the employee are very interested in convincing the client of this. You can read more about why at the link. As a result, honest and not entirely honest methods of persuasion are used. And we must admit, a huge number of borrowers succumb to these persuasion. And this despite the fact that their apartment mortgage insurance is much more expensive than that of other insurers.
Therefore, the only way out is to politely but firmly refuse the “do-everything-quickly-but-expensively” option and look for a profitable offer yourself, studying the offers of all insurers from the list of accepted partners.
There are insurance companies that have been deprived of accreditation with Sberbank, but “forget” to inform policyholders about this or assure that everything will be fine. It won't be normal. The law allows the bank not to accept policies from companies that do not have accreditation. In particular, at the moment the following fairly well-known insurers are not partners: Rosgosstrakh, Soglasie, Uralsib, Renaissance, Spasskie Vorota, MAX.
It should be noted that studying options from all companies on the list takes a lot of time. At the same time, due to human factors, it is not always possible to obtain the correct current policy amount. Below we publish the results of our research into the mortgage property insurance market. A double (for control) call was made, and the calculation results did not always coincide in both cases. The calls themselves took about 5 hours.
You can calculate in an online calculator. Payment is made instantly, without SMS or registration. All rates are current.
2. Programs "Transition"
To renew your policy for the second and subsequent years of credit, you can safely change the insurer. Some companies may offer an additional 5-10% discount for switching to them upon presentation of the old contract.