Insurance of a mortgage apartment: conditions, documents

Наверное, нет такого человека, который бы не I wanted to have my own comfortable accommodation. But, unfortunately, not everyone has the opportunity to purchase it. Therefore, in our country, many young couples are considering the option of buying a home on credit. When you make an apartment in a mortgage, many banks force their customers to insure the living space from loss or damage. In this case, not only real estate is insured, but also the health and life of the apartment owner. It is often practically impossible to refuse it, because otherwise the bank will simply refuse to provide a loan.

Here most people have a question:“Is insurance of a mortgage apartment mandatory or not?” The answer is unequivocal: it is mandatory. The fact is that, according to Russian law, any real estate that is purchased with a mortgage must be insured. Therefore, every citizen who wants to arrange housing in a mortgage, should have a detailed understanding of real estate insurance. Let's try to sort out this issue in more detail.

Is it possible to refuse insurance services when making a mortgage?

Before you take out insurance, you mustfind out what insurance a mortgage apartment gives in general. According to the current legislation, when registering a mortgage, only mortgage property, that is, a house or apartment, can be insured. But with the aim of reducing their own risks, many banks force their clients to purchase additional insurance services, among which the most common are life and health insurance of the borrower, as well as legal transparency of the purchase / sale transaction. In case of refusal to purchase additional insurance services, financial institutions, in most cases, increase the interest rate on the mortgage. Thus, it is impossible to refuse insurance services.

What cases does insurance cover?

Mortgage insurance protects the borrower from the following risks:

• from fire, explosion, flood and other emergencies, as a result of which the living area was damaged a lot and it cannot be restored;
• damage caused to the apartment by third parties;
• financial institution launched a new mortgage lending program with more favorable terms.

Если при покупке недвижимости в ипотеку также insurance was issued, then in case of any of the above cases, the insurance company pays the balance of the loan debt. If the borrower refuses to apply for insurance, he will be obliged to fulfill all the obligations stipulated in the loan agreement.

Mortgage insurance terms

Как гласит действующее законодательство, insurance mortgage apartment must be issued before the conclusion of the loan agreement. This should deal with the borrower independently. He must decide on the insurance company, the services of which he will use, and also conclude an insurance contract. Moreover, its validity period must coincide with the term of the loan.

Apartment insurance, the cost of which depends on several factors, can be paid once a year or quarterly.

The amount of insurance premiums affects:

• the term for which the insurance contract is concluded;
• condition of living space;
• the number of purchase / sale transactions made before with real estate.

The insurance period can vary from 30 to 50 years, but it should coincide with the period of use of borrowed funds.

Requirements for living space when making insurance

Insurance of an apartment in a mortgage is permissible only if the living space meets the following requirements:

• physical deterioration of the building in which the apartment is located, does not exceed 60 percent;
• the borrower has a conclusion on the technical condition of the dwelling and an act on its assessment, drawn up by a professional independent expert;
• legal purity of all transactions that were previously committed with the property;
• availability of the apartment all the necessary documentation.

If any of the above items is not met, the insurance company will refuse to provide its services, and, therefore, it will be impossible to get a mortgage.

What documents are needed for insurance of residential real estate?

Every person who plans to acquireown housing, interested in the question of what documents are needed to insure a mortgage apartment. You will need to prepare the following documents:

• documents for living space to be insured;
• passport of a citizen of the Russian Federation;
• The act of technical inspection of the apartment, indicating in it its current value;
• extract from the Unified State Register;
• copy of a technical housing plan;
• the original and a copy of the extract from the house book.

To insure the title, in addition to the above documents, you will need to prepare:

• a document certifying the right of the borrower to own residential space under previous transactions;
• a document confirming the fact of the purchase / sale transaction;
• certificate of state registration of the apartment;
• a document confirming that the spouse does not object to the sale of housing;
• checks for payment of utilities.

If, in addition to real estate, the borrower will insure his life and health, then a health certificate will be required.

What documents will be required from the seller of the apartment?

Mortgage insurance assumes that the seller will also be required to provide a certain package of documents.

It will require the following:

• notarized copies of all passport pages;
• the consent of absolutely all family members to sell housing, having the right to own an apartment;
• if the current owner of the apartment is a pensioner, then copies of PND and ND certificates will be required;
• if persons who have not reached the age of majority are registered in the apartment, then a copy of the sale permit from the guardian will be required.

It is worth noting that each insurer has its own requirements for the procedure of registration of insurance, so the list of necessary documents may differ from the above.

Insurance cost

It is impossible to say for sure how much an apartment insurance will cost. The cost depends on the insurance program, as well as the technical condition of the living space.

For example, when property insurance homethe cost of insurance can range from 0.3 to 1% of the value of the property. It also takes into account the condition of the apartment, the age of the house, and the presence of security systems.

The cost of title insurance can range from 0.1 to 0.6 percent of the value of real estate. If everything is in order with the legal purity of housing, then you can count on the lowest percentage.

If, in addition to living space, the borrower also wantsinsure yourself, then the services of the insurer will cost from 0.7 to 1.5%. At the same time, the state of health of the insured and the type of his activity affect the amount of insurance premiums.

The most economical option is a comprehensive policy that includes all the services discussed earlier at once. Its cost can vary from 1 to 1.5 percent of the value of the apartment.

Today the opportunity is available exactlyfind out how much mortgage insurance will cost. A calculator implemented on the websites of most insurance companies will help you with this. With it, you can determine the exact amount of insurance premiums.

The process of registration of mortgage insurance

So how to insure the apartment? This question is asked by many people who are planning to apply for a mortgage.

The procedure for obtaining an insurance policy occurs in the following sequence:

1. Find the UK, offering the most favorable conditions.
2. Carefully examine the insurance contract. This will avoid various pitfalls and the presence of hidden services laid down by the insurance company illegally.
3. Familiarize yourself with the insured events covered by the policy, as well as the amount of cash compensation and the timing of their payments.
4. Submit a standard application to the insurance company.
5. To make an insurance premium of the established size and in the terms stipulated by the contract.

The insurance contract is drawn up in three copies: the first is left with the insurer, the second is taken away by you, and the third is given to the bank.

Where to insure the property when you make a mortgage?

Nowadays, mortgage apartment insurance isOne of the most common areas that a large number of insurance companies are engaged in, therefore, there will not be any particular problems with finding an IC offering optimal conditions. But here it is important to understand that not all insurers work honestly, so in order not to fall into the hands of fraudsters it is recommended to use the services of only reliable and trusted companies. Next will be considered the largest companies involved in mortgage insurance.

Sberbank: Mortgage Insurance Terms

Sberbank is the largest financialorganization in Russia with state support, therefore, this company not only offers optimal insurance conditions, but is also one of the most reliable.

Insurance of an apartment with a mortgage in Sberbank is issued on the following conditions:

• insurance period - up to 30 years;
• the size of insurance premiums - from 0.3 to 0.8%;
• the insurance amount is not less than the remaining debt and not more than the cost of the living space;
• insurance programs - housing and comprehensive.

Insurance of an apartment with a mortgage in Sberbank is issued no more than five days, so you do not have to spend a lot of time and you can quickly buy an apartment on credit.

Insurance of real estate in VTB

The second bank in Russia in terms of mortgage lending is VTB.

Insurance of a mortgage apartment in this financial organization is carried out on the following conditions:

• insurance period - up to 30 years;
• the size of insurance premiums - from 0.5 to 1%;
• the insurance amount is not more than the market value of the living space;
• insurance programs - comprehensive.

The procedure for obtaining an insurance policy in VTB takes no more than one week.

Registration of insurance policy in Rosgosstrakh

Another undisputed market leader in the field of mortgage insurance is the company Rosgosstrakh. She offers her clients the following conditions:

• insurance period - up to 50 years;
• the size of insurance premiums - from 0.12 to 0.65%;
• the insurance amount is not more than the market value of the living space;
• insurance programs - housing and comprehensive.

Insurance services from the company Rosgosstrakh are much cheaper, since the calculation of the cost of the policy takes into account many more factors, including the location of the apartment or house.

What to do in case of an insured event?

We talked about all the nuances with whichconnected mortgage insurance. Now it remains only to consider the procedure for the occurrence of the insured event. To receive cash compensation you must:

1. In the event of any force majeure, you must first report the incident to the competent authorities.
2. Notify the insurance company of the accident and report the cause of the accident.
3. Prepare a package of documents for the affected apartment.

If everything is done according tolegislation and in a timely manner, the obligation to repay the debt falls on the insurance company, and the borrower receives monetary compensation. It is worth noting that the debt must be repaid by the insurer before the term of the loan agreement expires. Therefore, to avoid any problems, always read the terms of the agreement.