Is insurance required for a mortgage (Sberbank)?

Many people in our country want to buy housing through credit. Naturally, they are interested in, is insurance required for mortgages in Sberbank? More about this service will be described in the article.

Types of insurance

Mortgage insurance in Sberbank is 2 types:

• Life and health;
• Property.

The first type of service is not considered mandatory, but if the refusal rate on the loan increases. Mortgage insurance in Sberbank is mandatory. Buying real estate, the client transfers it as a pledge for the term that the contract is in force. Therefore, to refuse insurance on the mortgage in the Savings Bank will not work. Insurance is issued for the purchased object.

Decor

Insurance is formalized at the conclusion of a loan agreement. If you need to extend the policy, you can do it on the site of the Savings Bank. There are 2 products that customers can use:

1. "Protected Online Borrower".
2. "Mortgage Insurance Online."

The first policy serves as protection from the risks of loss of health or withdrawal from life. And the second is designed to protect against loss, damage to real estate, which is a pledge.

The program "Protected Online Borrower"

To issue this service:

1. Go to Sberbank's website;
2. Visit the section "Insure yourself and property";
3. You need to find a service and connect it.

This program covers the risks associated with disability of Groups 1 and 2 and death. The amount of compensation is equal to the amount of the loan that must be paid. The policy is valid for 1 year.

Mortgage Online Insurance Program

The policy for this program is extended on the site. To do this, you need to find the appropriate section and activate the service. It covers the risks of the collateral object:

• walls;
• Partitions;
• window;
• Doors;
• roof.

The insurance policy compensates compensation for:

• Fire;
• Explosion of gas;
• Lightning strike;
• Natural disasters;
• Illegal actions of third parties.

The policy is valid for 1 year.

Insurance companies

If there is a mortgage insurance in Sberbank, then full compensation for damage is guaranteed with the occurrence of the insured event. The activity of the insurance company is carried out by the Sberbank Insurance Company.

Customers can choose one of 17 companies:

1. "VTB Insurance";
2. Ingosstrakh;
3. "RESO-Garantiya";
4. "Absolute Insurance";
5. "Rosgosstrakh".

Each program offers its own conditions, puts forward demands on customers. The contract is formalized in the Savings Bank, after which the service begins to operate. In the event of an insured event, each company guarantees damages.

Risk management

The insurance cases include:

• Damage to the object;
• Theft;
• Fire, flooding;
• Explosion of gas;
• disaster.

If the property is destroyed completely, a full payment of the loan takes place. Partial damages are also compensated. The amount of coverage is set individually.

Conditions

Conditions for providing insurance depend on the company. Not all policies are accepted by the bank. It is important that it is suitable for all requirements of the creditor. Sberbank works with firms that cover common risks. This allows you to be confident in the return of funds.

On the website of Sberbank you can find a list of companies that make insurance. At the same time, the creditor should not impose the insurers with whom the contract is concluded. The client can choose a company by himself.

Peculiarities of policy formulation

Before the insurance of a mortgage in Sberbank is formalized, it is necessary to pay attention to important aspects:

• The amount of coverage - under the standard contract, an amount equivalent to a credit with overpayment is assumed;
• Size of the company's premium - the borrowers of Sberbank are offered a flat rate of 0.15% of the price of housing;
• The period of validity of the policy is usually equal to the term of the contract;
• Conditions of prolongation - some firms increase interest rates after 1 day;
• Early repayment - usually insurance premiums are refunded in case of premature loan payment. If this information is not in the contract, then when you return it may be difficult.

Insurance should be formalized only if all conditions suit it. It is advisable to familiarize yourself with the rules of several companies in order to choose the right one.

What is necessary?

What is required to have an apartment insurance for Sberbank? Mortgage with this service is made out together. To get a policy, you need a passport, a loan agreement, a certificate of valuation of the object. The last two documents set the price of the policy. The size of the insurance premium is affected by:

• Condition of real estate;
• Duration of the insurance contract;
• Number of risks.

Cost

How much is insurance for a mortgage in Sberbank? The price is determined by the condition of the property and the cost of the apartment. The company performs individual calculations for all customers.

There is a choice of 2 options:

• The policy is bought for the whole cost of the apartment;
• The policy is purchased for the amount to be given to the bank.

The average rate is 0.225% of the loan amount. For example, real estate is worth 3 million rubles, the first payment was 1 million rubles, and the policy is bought for the amount of debt, then at 4 500 rubles will cost insurance for a mortgage in Sberbank. The cost of the document is about the same in other institutions.

The policy is valid for 1 year. When it expires, it is possible to use the renewal or the design of a new document in another firm. It is purchased by making an annual contribution. There are no benefits in insurance.

Return

The borrower has the right to refund payments made for a time exceeding the validity of the mortgage. In this issue there are some subtleties:

• If the policy is valid for 11 months or more, then the whole amount is returned;
• If the loan is repaid, and the policy is still half the time, the client receives half of the insurance premium;
• If most of the term of the policy has passed, then return the funds does not make sense.

How to return insurance for Sberbank's mortgage? It is necessary to file an application, attaching to it a bank statement on the absence of debt. The return can also be issued with the insurance of life, health.

Life and health insurance

Life insurance for mortgages in the Savings Bank is not a mandatory requirement. But usually the employees insist on processing the service to reduce the risks from non-payment of debt. If the insurance is not formalized, the rate rises by 1%.

Life insurance for mortgages in the Savings Bank implies the imposition of additional financial burden, and more than compulsory property insurance. But because of its advantages, the service is considered to be in demand.

Why do you need life and health insurance?

The policy guarantees repayment of funds to the bank in case of loss of health and withdrawal from life. Since the mortgage is drawn up for a long period of time, Sberbank protects itself from such risks. For the client, the policy is considered a guarantor that in accidents his credit obligations will not pass to the guarantors and relatives, since the debt is paid off by the insurance company.

If the borrower temporarily lost his ability to work, his loan is also paid by the company. If you refuse to design such a service, the rate increases. The list of risks can include:

• death;
• Disability;
• Loss of work.

"Sberbank-Insurance" works according to the following programs:

• Standard program - 1,99%;
• Health and loss of work - 2.9%;
• Independent choice of parameters - 2.5%.

Insurance of title

Sberbank offers insurance of title, which involves insurance of property rights. If the client who pays the mortgage for housing, is deprived of the rights to it, then all the financial obligations for paying the debt are taken by the insurer.

The borrower who purchased an apartment on a mortgage loses his property rights in several cases:

• There are errors in the documents, because of which the transaction is recognized as invalid;
• New rights holders were discovered whose interests are not taken into account when drafting the contract;
• The person on behalf of whom the transaction is executed is recognized incompetent;
• Fraudulent actions were used.

Registration of title insurance is more suitable for secondary housing, as in new buildings borrowers are the first owners. The rate for the service is 0.3-0.5%.

Documentation

Mortgage insurance in Sberbank in Moscow and any other city is formalized with the provision of the following list of documents:

• statement;
• passport;
• Credit agreement.

Sometimes it is required to provide a contract of sale.

Advantages and disadvantages

Insurance has the following advantages:

• Extension through the site;
• Do not need to visit the bank and insurance company, as all actions are performed by the insurer independently;
• The policy is issued in electronic form;
• The price of the policy depends on the amount of debt;
• Favorable tariffs;
• Reliable transmission of information;
• Possibility of return of insurance premium.

Of the minuses, the following aspects stand out:

• When a mortgage is issued, the service must be obligatory;
• Although life and health insurance is not considered mandatory, the loan rate on refusal from it increases by 1%;
• The policy is valid for 1 year, after which it requires an extension;
• The extension of the document with the amount of compensation from 1.5 million rubles online will not work;
• additional expenses.

Housing loans

Mortgage insurance covers all programs offered by Sberbank:

1. Mortgages with state support. The first payment is at least 20%. The maximum period is 30 years. Overpayment is appointed individually, but from 11.4%. Commission with the issuance of a loan is not taken, but there are costs for the valuation of real estate.
2. Purchase of finished apartment. Such a loan is issued when buying real estate secondary market. The amount is issued from 300 thousand rubles at a rate of 12.5% and for a period not exceeding 30 years. The size of the first payment is determined by several factors, but not less than 15% of the cost of housing. The first installment of the parent's capital is paid.
3. Purchase of housing under construction. The loan terms for this program involves the provision of funds for the purchase of housing in new buildings. Its amount, as well as with the acquisition of the finished object, is from 300 thousand rubles. The minimum rate is 13%. A mortgage is issued up to 30 years. The first payment can be made at the expense of maternity capital.
4. Individual house construction. A loan is issued from 300 thousand rubles at 13.5%. The first payment is equal to 30% of the cost of housing. A loan of up to 30 years is granted.
5. Mortgage for the construction or purchase of a country house. The first installment is 30%, and the crediting period is 30 years. The amount is from 300 thousand rubles.
6. Military mortgages. It is issued to servicemen. The amount is not more than 1 million 900 thousand rubles. The rate is 12.5%.

The requirements include a return of 21 years, and at the time of return should be a maximum of 75 years. You must have a work experience of 6 months. It is necessary to invite co-borrowers - up to 3 individuals.

To apply for a mortgage, you need a passport, a questionnaire, a property right, a certificate of registration of the right. Also, the expert's conclusion on the valuation and the cost of the object, the cadastral and technical passport of the object is needed. Together with the registration of a mortgage, an insurance contract is drawn up. But if housing insurance is mandatory, then life and health is chosen at the request of the borrower. With these services, material costs increase. Therefore, it is necessary to think carefully whether there will be material opportunities to pay for such services.