Mortgage loans are distinguished by long-term, and, therefore, the emergence of unforeseen circumstances is more susceptible, as a result of which the borrower can fully or partially lose the subject of pledge. We will tell in the article why real estate insurance during mortgage and how to make it correctly.
When designing mortgage loan Almost all banks require the conclusion of an insurance contract for mortgage real estate. This is explained by the desire of the creditor to reduce the risk of non-receipt of back issued money In a situation, if something happens to the acquired object. Forced real estate insurance with a mortgage gives the bank certain guarantees.
For a borrower conclusion insurance contract associated with additional spending. To save, you need to analyze not only the conditions mortgage lending, but also the features of insurance.
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Some banking organizations Require not only real estate, but also the life and health of the borrower. However, in accordance with the current legislation, the duty of a citizen only includes the insurance of the object of pledge (apartment or at home). Despite this, banks offer an insurance package that includes:
- insurance of real estate from destruction or other damage;
- insurance of life, health and solvency of an individual;
- title Insurance Protecting legal purity Transactions and ownership of the acquired property.
The requirement to issue a full package Bank protects its interests and reduces all possible risks. Nevertheless, you need to repel from the situation. For example, the title insurance is made only on transactions with housing in the secondary market, so when buying an apartment in a new building there is no need.
The term of insurance is also not unequivocal. Some institutions require the conclusion of the contract for the entire period of the mortgage, others for three years (the limitation period for the majority of civil matters with real estate), third - for 10 years ( limitation of actions According to some civil cases regarding real estate rights).
It also happens that the borrower already insured the subject of collateral, which confirms the presence of an insurance contract and the policy. Of course, the person does not intend to pay again for a similar service. In such a situation, it will be necessary to find a bank who will agree to take existing insurance, even if the policy issued a company that does not cooperate with the lender.
Procedure and nuances of design
Typically, banks cooperate with certain insurance organizations, with which the insurance contract is concluded when making a mortgage. Quite often, when drawing up an agreement, the beneficiary is the bank, and not a borrower. This means that when insurance case The owner of the housing will not be able to dispose of compensation at its discretion.
Policy can be obtained without visiting the office of the insurance company. As a rule, an employee of the insurer or an authorized bank specialist is present at the conclusion of a mortgage agreement.
Before signing the securities, the real estate will be examined by experts, according to the results, an act is drawn up with the indication of the characteristics of the property. If it does not meet the requirements of the insurance company, the policy will not be issued, and therefore the bank will not approve the mortgage. Citizen will have to look for another property for purchase.
Requirements made by real estate insurers:
- the house should not be recognized as emergency or veterinary;
- the demolition of the building is not planned;
- physical wear of the house and apartment not higher than 70%;
- all construction work is completed.
The insurance contract cannot be concluded for a period of less than one year. If the period of its action is characterized by a longer period, the borrower must make insurance premiums annually.
Mortgage insurance cost
Insurance rates vary. As a rule, the cost range varies in the range of 0.25-0.5% of the sum insured. The price depends on several factors:
- a list of risks covered by insurance;
- the volume of the franchise - part of the damage that is not paid by the insurer;
- specifications of real estate;
- features of the operation of the object.
The Bank's requirements are usually included in the following risks:
- Damage or destruction of property as a result of a fire.
- Damage or destruction as a result of flooding.
- Natural disasters.
- Fraudulent actions of third parties.
The borrower may additionally seal the desire to insure real estate for the safety of interior decoration from unforeseen circumstances. For example, from flooding neighbors from above. However, this will lead to an increase in the cost of the policy.
Most often, the agreed amount of compensation when an insured event occurs from the volume of the mortgage loan with a coefficient of 1.1. She gets a bank. The borrower will optionally increase this amount to the value of the property in the market. Then the bank will only receive the sum of mortgages, and the rest is compensated by the borrower.
The cost is calculated individually, as many criteria have an impact on it. The final digit is determined taking into account the characteristics of the insurance object. It is evaluated by everything, ranging from the year of the building, ending with the quality of the finishing material.
For rate real value Housing At the time of the conclusion of the contract, it is worth contacting a professional appraiser. The specialist will analyze the state of the apartment and the situation in the market. Based on the assessment report, an insurance payment will be calculated.
Many insurance organizations Integrated service packages are offered a mortgage loan recipients. Such decisions cost much cheaper than the acquisition of each type of insurance separately. The total cost will not exceed 1.5%.
The insurance policy is paid annually until full repayment Mortgage. The payment is calculated taking into account the balance of unpaid debt to the Bank. As the balance decreases, the cost of insurance is reduced.
The procedure for making insurance premiums is controlled by the Bank. For violation of the claims of the insurance organization in loan agreement Prepared penalties.
Insurance cases
Before signing the insurance contract, it is worth carefully studying its content, and in particular the part that describes the insured events. As a rule, compensation is paid as a result:
- fire;
- flooding;
- natural disaster;
- fraud;
- detection of defects of the building, which the borrower did not know.
The basis for obtaining an insurance sum of title insurance is the loss of ownership of the property. This must be confirmed by a court decision.
If something from the contract listed in the contract happened, first of all, notify the Bank and insurance company. Volume compensation pay It will depend on the degree of property damage.
If property cannot be restored, insurance amount Listed in the account of the payment of mortgage debt. When the balance of the loan is less than this amount, the difference is issued to a citizen in hand.
Often there are controversial situations. For example, the insurer may refuse to the insured in the payment of compensation, arguing that the damage is insignificant or under any other pretexts. Only court can resolve the situation.
In case of difficulties, contact legal advice. You can get free legal assistance on our website. Ask a question to an expert in a special window.
In the event of disputes related to real estate insurance during mortgage, the Bank usually supports the borrower. The situation can not be brought to the court if you seek the legal help of a professional.
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He tells us that by taking an apartment under the mortgage insurance contract, a person is obliged to insure her.
Without the implementation of this insurance, a loan cannot be obtained - the bank will not consider your documents.
It should be understood that the borrower and the bank are interested in this step. For the Bank Insurance - a guarantee that even in force majeure, he will remain "with money", for the borrower it is a deliverance from headache related to all risks accompanying the availability of housing - fire, robbery, flooding - all losses will reimburse insurance company.
If the damage caused by the housing is not repaired, the insurance company is completely paying the bank to the whole of the remainder.
So is it necessary to insure an apartment for mortgage every year?
Does it be sure to insure the apartment in the mortgage in Sberbank every year?
Reply to one of the most pressing issues: "Does it be sure to insure the apartment in the mortgage every year?" Is completely unequivocal. Yes, be sure.
By entering into a mortgage loan agreement, you sign an agreement with the bank that insurance is made for the entire mortgage period, which is for credit organization The guarantee that with any force majeure it will remain with his money.
As a rule, the insurance company itself reminds the borrower about the expiration of the insurance period and offers to extend it.
Thus, the insurance of the apartment for a mortgage of Sberbank is obligatory!
The legislative framework
Do not think that banks impose insurance without legal reasons - they are guided by the second paragraph 31 of Article FZ "On Mortgage", which indicates that the borrower is obliged to insure housing from all possible risks.
Article 31. Insurance of the laid property. Borrowing and Insurance Liability Insurance financial risk creditor
2. In the absence of a mortgage agreement, the mortgager is obliged to insure this property at full value from the risks of loss and damage, and if the total value of the property exceeds the size of the owned mortgage obligation, the amount not lower than this commitment .
That is, if you wonder if you can not insure the apartment at all when making a mortgage, "it is impossible. Does the insurance of the apartment under mortgage in Sberbank? Yes, be sure.
No one wants to risk big money, and you yourself will live calmer, knowing that no matter what happens, you always have insurance and answer your property not only you yourself, but also the insurance company.
Early repayment
With the question of whether it is necessary to insure the apartment with a mortgage every year, less understandable.
But here there is a reasonable question from any borrower, - is it possible to return funds spent on insurance if the mortgage is repaid early, and the sum insured has not come.
Yes, it is possible, but only the part of the insurance is subject to return, which concerns the remaining early repayment years .
Consider a specific example:you already know whether to insure the apartment if it is in the mortgage and take a mortgage loan for 15 years. Insurance is drawn up for relevant period, but mortgage is repaid in 10 years. Insurance service will return to you 30% of the amount, since you have reduced the term of loan payments by a third.
Pay attention to the fact that insurance companies, of course, love to ask for one-time insurance payments, but it is obvious that, firstly, we cannot be sure of tomorrow, and especially in the 15 coming years, and secondly, the amounts For such a long time, it may be very low.
That is why the amount is divided into several parts, and it is quite possible that you just do not have to pay the last part.
Important: Insurance funds for early repayment of the mortgage loan are returned only after a mortgage status is documented from the apartment.
Having received full official freedom from the bank, you can refer to the insurer and pick up the money that no longer belongs to the contract.
Sberbank rules
As in any financial institutionFor a mortgage loan in Sberbank you will need to insure your apartment at least two articles: from its loss and damage.
At the same time, the maximum insurance payments upon the occurrence of the insured event will be equal to the amount of the loan, that is, if your housing for one reason or another will not be subject to recovery, the insurance company will pay Sberbank all the amount necessary for repayment of the loan.
Sberbank offers a borrower to choose from his own insurance company Sberbank Insurance, as well as from seventeen accredited external companies to which such giants include:
- Rosgosstrakh;
- Reso-warranty;
- VTB insurance;
- Ingosstrakh.
The bank does not impose any of the company, and the borrower himself in the right to choose the conditions of which he is more suitable.
IMPORTANT! Be sure to dedicate the time to study the terms of insurance in all companies - very often there is an opportunity to save an impressive amount of money, spending a little effort to visit all companies.
In a contract with Sberbank, the amount of insurance will be stipulated (equal to the cost of the apartment), the duration (as a rule, it corresponds to the duration of the loan), the conditions of repayment and termination of the contract.
As a rule, payment of insurance will be equal to 1% of the loan value, but in general it is calculated individually, since such factors are important:
- housing character (new, secondary);
- age and health status of the borrower;
- district;
- terms of insurance company.
Considering all these criteria, the amount allowed to pay the amount that can be paid at the same time, or divided by 3-4 times. Be sure to pay insurance for the apartment on the mortgage? Yes.
Do I need to insure the apartment with a mortgage in Sberbank? Yes. Does this depends on the desire or reluctance of the borrower? No, the key factor here is the requirement of a bank based on 31 Articles of the Federal Law "On Mortgage", where the need for housing insurance in the event of a loan for an apartment is emphasized.
Should not be taken to this measure as a method of a bank and insurance company to earn on you.
Unfortunately, no one knows what can happen to us or housing tomorrow, so it is worth shifting some of the responsibility from your shoulders to the insurance company and sleep peacefully.
Considering all of the above, I want to note again, on the question: "With a mortgage of Sberbank, the apartment insurance is required or not?" The answer is quite obvious - yes, compulsory insurance Apartments remains the responsibility of a citizen.
Object insurance
Property interests of the insured associated with loss or damage to the insured real Estate (Apartments, residential buildings, cottages, garden houses, land).
Insurance cases:
Loss or damage to real estate as a result:
- fire;
- explosion;
- flooding;
- natural Disasters;
- theft;
- robbery;
- scope;
- intentional destroying property by third parties;
- other circumstances.
Insurance amount
Insurance amount is determined by one of two options:
- in the amount of the actual value of real estate (the insurance amount remains unchanged during the entire term of the insurance contract);
- in the amount of the loan debt balance (the insurance amount is decreasing annually in accordance with the decrease in the balance of the loan debt).
The term of payment of the sum insured
The magnitude of the insurance payment
In the amount of actual costs of restoring the damaged (lost) property, taking into account the wear on the replaceable parts and materials, but not more than the sum insured.
Auto Insurance
Object insurance
- Property interests of the policyholder (beneficiary) related to the possession, use, by order vehicleand also installed on it additional equipment.
- Property interests of the insured (beneficiary) associated with the possession, use, the order of the vehicle and the additional equipment established on it due to their damage or loss (destruction, disappearance), including before the TC statement.
Insurance cases:
Death or damage to TC as a result:
- fire;
- explosion;
- collisions with another TC;
- departure (impact) on fixed or moving items (structures, obstacles, animals);
- tipping;
- falls of any objects, including trees, snow and ice;
- emissions of gravel, stones and other vehicles from vehicles;
- fall into water;
- fail at ice;
- natural Disasters;
- unlawful actions of third parties;
- theft of TC (loss as a result of theft, robbery, robbery).
Insurance amount
No more valid (market) cost of the vehicle; No less loan debt balance.
The term of payment of the sum insured
Within 5 working days from the date of receipt of all documents required to make a decision.
Amount of insurance premium
In accordance with the tariffs of the insurance company.
Detailed information can be obtained in any office PJSC Sberbank.
Reading time ≈ 9 minutes
What types of insurance exist when making a mortgage loan
In addition to the most common types of mortgage insurance, insurance may also be required to lose property rights, less often - the liability insurance of the borrower.
Insurance of real estate object
Housing insurance (structural elements) is mandatory species Insurance in mortgage, there is such insurance relatively inexpensive - from 0.09% to 0.16%, if purchased ordinary apartment. It will be more expensive (in 1-2%), if the non-standard real estate object is purchased - a house or townhouse. Affect insurance fee Maybe the presence of wooden floors, the age of the structure, the percentage of wear.
Compulsory insurance of the object of pledge acts as a guarantee that in the event of unforeseen circumstances, such as damage or destruction of real estate, mortgage will be repaid by paying from the insurer.
Banks require insurance for an amount of at least the loan amount (some on the amount of credit + 10% to insurance payment Could cover and interest), this condition is prescribed in a loan agreement.
To reduce your own risks, the borrower may insure housing for an estimated value, which is more loan balance. In this case, when destroying housing, the insurance payment will allow not only to close the loan, but also to receive the difference between the balance of the principal and the cost of the apartment. The first beneficiary will be a bank, but only in the amount of customer commitments, all that will receive the client himself. Insure housing for the cost of above, it is impossible.
Protects insurance against damage to structural elements as a result of a fire, bay, vandalism, construction defects. In case the client hid from insurance information that affects the likelihood of an insured event (for example, there is an act of violation construction normsor holding construction work Next to the house in which the insured apartment is located), then the payment may refuse.
There are cases when the insurer refuses to pay, referring to such facts. Such a refusal can be challenged in court by providing confirming documents. In a statement-questionnaire (it is a mandatory annex to the insurance contract) for insurance in detail all the housing parameters that are necessary for risk assessment are indicated.
Life insurance
Life insurance and disability is not a mandatory type of insurance, you can refuse it. Banks are not entitled to impose additional insurance, but they still succeed. The client is granted a choice - to issue life insurance or mortgage rate will increase significantly.
Life insurance of the borrower - like and an optional type of insurance, but banks are able to impose and her
It turns out a choice without a choice - loan overpayment with increased bid. (Some banks threaten to 5% increase, although usually no more than 3%) much more than the cost of insurance. In rare cases, when the client at the age and life insurance will be very expensive, it makes sense to abandon life insurance in favor of increasing the rate, and even that only if the mortgage term is small. But here, credit institutions protect their interests and, without registering in a loan agreement, this requirement, as it violates the legislation, put the condition that the loan will be issued only in the presence of an insurance policy.
IN mortgage contracts Until 2008, the requirement to insure life and the loss of working capacity is written by a separate point, if desired, it is possible to return money through the court for the imposed insurance if there is a time for litigation and the amount is essential.
The cost of life insurance depends on the age, profession, the client body mass index. As well as from the bank, as insurance companies pay credit institutions, which comes a client, a commission remuneration that can reach 45-60% of the insurance premium.
For example, insurance for VTB24 will be one and a half times more expensive than for Sberbank, in the same insurance company, in other things being equal, since the commission for VTB24 is 45% (through intermediaries that declare " Favorable "conditions, 60%), and Sberbank of the Commission does not take.
When living in life, it is important to make the calculation immediately in several insurance companies, since the tariffs differ significantly. In one insurance rate will be 1% for customers of any age (it will be favorably insouncing age-related customers, and not beneficial to young), and in another for customers 20 years - 0.16%, and for customers at 50 years - 1.8%, all Individually.
So, it is not profitable to abandon life insurance, but it is still possible to save money on insurance, if you can calculate the cost in several insurance companies (in the first one recommends that the bank is most likely the maximum cost due to the maximum commission of remuneration) and choose the most appropriate Price.
It is worth considering the schedule of insurance payments at once for the entire period, if there is an opportunity, since there are cases when the insurer lures the client with a low tariff for the first year. Although in any case, it will be possible to change the insurance company further in the presence of a more advantageous offer.
Title insurance
Insurance of the loss of property rights require not all banks. Separate credit institutions will insist on this form of insurance, only when the availability of risks are revealed when studying documents on the apartment. Of those banks who still require the title insurance, 2 groups can be distinguished:
- Requiring insurance for 3 years (limitation period);
- Requiring insurance for the entire mortgage time.
A long term insurance loss of property rights is associated with the fact that 3 years is given to challenging the transaction not since the real estate transaction itself, but from the moment the potential owners learn that their rights are violated that the transaction has already been committed. Thus, even a turn of ten years after the purchase of a client's apartment can tighten the judicial tighten on this issue.
Title insurance for mortgage for some banks must, for some
The credit institution is interested in insurance only on the amount of the loan, but the client has the right to insure complete value housing. For this, in addition to the insurance contract, the beneficiary to which the bank will be, is a voluntary title insurance agreement (on the difference between the amount of assessment and the amount of the loan), the beneficiary on which will already be a borrower.
In contrast to property insurance, an agreement on which can be concluded by routine on the estimated value (even as part of an integrated mortgage insurance agreement), voluntary insurance The title is issued by a separate contract, and in the two contracts will appear different beneficiaries, in one bank, in another borrower. This is due to the subtleties court proceedings In case of insured this kind risk.
If you seek voluntary insurance out of the mortgage, then the insurance rate will be greater, if you conclude two treaties at the same time, then in most insurance companies the tariff will be the same in both of the discount.
Borrowership liability insurance
Borrower's liability insurance housing loan may require bank under certain conditions for providing a mortgage, for example, with minimal initial contribution and reduced rate. The last of the listed types of insurance in the conditions of a possible decline in real estate prices is relevant.
A common erroneous opinion is that if the responsibility of the borrower is insured (and this is a very expensive insurance) in case of non-payment of the loan, the insurance company will pay the mortgage. This is not the case, the insurer only compensate to the bank the difference between the balance of mortgage debt and the cost of realized property, if this value is not enough for debt repayment.
How to reduce insurance costs in mortgage?
Banks recommend to insure life, title property and property and associate this with what they think about the future of the client. For example, if something happens to the borrower, the apartment moves to heirs together with the loan commitments. If such a belief methods do not work, the credit institution will propose to abandon the optional types of insurance, but will raise the mortgage rate. At the same time, the overpayment, taking into account the increased rate, will be much larger than the cost of insurance.
Is it possible to actually save on insurance when making a mortgage loan
The client can choose the insurance company independently, but it is necessary to choose from the list of accredited. Accreditation means that the bank checked the insurer and is completely reliable. Save on complex mortgage insurance it is possible if you appeal exactly in that insurance, in which the borrower is already a client, for example, on mandatory medical insuranceSince the likelihood of a discount is great.
The dimensions of the Thirteenth Payments decrease in proportion to the reduction of the principal debt, so: the larger pace it is possible to extinguish a mortgage, the more it will be possible to save on insurance.
Not everyone knows that the fare for insurance of the object of real estate and the title insurance is the same for the entire loan period, and life insurance tariffs grow in proportion to the age of the borrower.
At the same time, there are sharp rates of tariffs in certain periods (40-50 years), this is seen from the planned schedule of insurance payments (which, unfortunately, provide customers with all insurance companies). Counsery to repay the mortgage before the age when insurance becomes more expensive, no sense, but at least take into account the fact that, despite the decrease in debt, insurance payments can grow in the future.
Special attention is worthy of consideration of the case when the client belongs to the risk for the insurance company by virtue of its profession: the driver, pilot, welder. In such cases insurance rate The correction coefficient is applied, and insurance becomes more expensive by 20-50%, given the increase in the base tariff with age, the amount may turn out to be impressive. If such a client changes profession on the office, then it is worth noting the insurance company about it and write an application for transition of tariffs. This is another way to reduce insurance in mortgage.
Pretty labor costs (it will be necessary to re-provide all documents), but still having the right to exist in the way way to save is the transition to a competing insurance company. Many insurers have special conditions for customers who have acting policy (Mortgage insurance contracts in most cases of perennial) competing insurance company. This allows you to get a substantial discount and insure on more favorable terms.
So, to abandon the insurance (in addition to the insurance of the real estate object), it is possible, but at the same time the loan rate increases and the cost savings increases in additional overpayment of the mortgage.
In order to reduce costs, it is better to carefully study the suggestions of insurance companies and choose the best option. You can get a discount or contacting the insurer, the client of which the borrower is already, or if you go to another insurance company, already having a valid mortgage insurance policy.
