Guarantee of collateral safety: we conclude a mortgage insurance agreement. Insurance of the collateral

When purchasing a home with a mortgage, your property becomes collateral.

According to current legislation, everything that is the subject of collateral must be insured.

Additionally, you can purchase several other types of insurance, but before doing this, think carefully; often they are simply not needed.

Typically, the terms of your home insurance are the same as the terms of your mortgage, and the price may vary.

What is real estate mortgage insurance?

Mortgage insurance is insurance against the risk of the lender losing money, for example if the person who took out the mortgage fails to pay the amount in full.

This is a very important point when purchasing any real estate, and it is prescribed by law.

First, you will need to collect a package of all documents for the bank and insurance company:

• A certificate confirming your health;
• A copy of the notarized consent of the seller’s spouse for the alienation of residential premises;
• Certificate from a psychoneurological clinic;
• Certificate from the drug treatment clinic.

The next step is to write an application (this can be obtained from a bank or mortgage company).

Then the bank reviews your application and, if the answer is positive, conducts a pre-insurance examination of the property.

Requirements for the borrower:

• The minimum age is at least 18 years, in some companies from 20 years;
• The maximum age should not exceed 65 years, but some companies make concessions; in some places it is enough to bring a few additional certificates from the hospital and from work;
• Many banks and companies do not accept disabled people of groups 1 and 2.

Real estate requirements:

• Premises that are in disrepair or a dilapidated building, as well as in buildings for demolition, are not insured;
• Some companies do not insure apartments that are 70% worn out; in addition, they do not receive insurance for premises where construction work is taking place;
• Some companies (for example, UralSib) do not insure real estate that was involved in litigation.

What can be insured when taking out a mortgage?

1. Insurance of real estate, which is collateral. Do not forget about such cases as fires, floods, natural disasters, etc. This is all a big threat that can take your home, and with it the lender's money. To prevent this, banks insure the value of housing in order to fully compensate for the damage in the event of a catastrophe;
2. Life and disability insurance. This precaution will come in very handy if you suddenly become seriously ill or become incapacitated. The insurance company will compensate all damage to the bank, and you will remain with your apartment;
3. Title Insurance. Only necessary if you think that someone will be able to encroach on your property. That is, if you suddenly, not of your own free will, cease to be the rightful owner of the property.

What must be insured?

It is necessary to insure only the property that serves as collateral. As mentioned above, in the event of a fire, the insurance company will pay the bank the entire remaining amount of the loan.

When concluding a contract with an insurance company, it is best to indicate in the document the value of the entire property (and not the balance of the mortgage), so in the event of an accident, the company will not only repay the loan debt, but also pay you compensation.

What is voluntarily insured?

Life, disability and title insurance are available upon request.

Everyone is interested in the first type of insurance; for example, in the event of the borrower’s death, the relatives who accepted the inheritance will have to pay the mortgage.

If you are unable to work or become seriously ill, you are also unlikely to be able to pay off the debt on your own. For the bank and for you, this is fraught with long proceedings that will not end in your favor. Therefore, to protect yourself and your loved ones, we offer life and disability insurance.

Title insurance is pretty pointless at this point. It is necessary if the seller has any heirs who did not consent to the sale of the apartment. The likelihood of this is low, since each transaction is thoroughly checked before sale.

For how long can I be insured?

Insurance periods:

• For the entire period of the mortgage loan;
• For three years (since this period is the statute of limitations for invalid transactions);
• For the period established by the insurance company and the bank.

What does the price depend on?

When insuring real estate, the price for each borrower is different, usually it is 0.3-0.5 of the mortgage amount.

Several factors influence price formation:

• condition of the house;
• presence of finishing;
• design features of the building (for example, wooden floors), etc.

Life and disability insurance depends on:

• health conditions;
• professional activity of the borrower.

The price varies from 0.3 to 1.5% of the mortgage amount.

Title insurance depends on its legal purity(for example, the absence of other claimants to the inheritance when the apartment is sold by the heir). The price is 0.2-0.7% of the mortgage amount.

All payments are made annually. The bank notifies the insurance company about the borrower's debt balance, after which the insurance company calculates the amount of the insurance premium. Every year the payments decrease.

How to reduce your insurance rate?

Here are some options to reduce your payment amount:

• Only insure those events that you think are more likely to occur. For example, if you live near a forest, insure your home against fire.
• You can insure not the entire room, but its individual elements, for example, the floor, ceiling, walls, and so on. This type of insurance is best applicable to warehouse premises.
• A reduction in insurance rates is also possible through a partnership between a realtor and an insurance company; very often they cooperate, due to which distinguished clients receive a discount.

What to do if an insured event occurs?

1. Contact your insurance company and bank within one day;
2. Invite an expert to conduct an examination;
3. Gather the necessary documents:

• expert opinion on the amount of material damage and the value of the property;
• a certificate from law enforcement agencies proving that the insured event has occurred;
• in case of loss of legal capacity, a certificate from a medical institution;
• in the event of the death of the insured person - a certificate of death and its cause.

All collected documents must be taken to the insurance company, and do not forget to also write a statement of refusal to repay the loan. By collecting all the necessary documents, you will not only free yourself from mortgage payments, but also receive compensation.

To receive payments, you will need to submit an application to the tax office and attach all the necessary documents:

• certificate of the apartment owner;
• apartment purchase agreement;
• act of acceptance or transfer of real estate;
• accounts;
• loan agreement.

Within five days, your application will be reviewed, and if the decision is positive, part of the money will be returned to you.

Who is the beneficiary?

The beneficiary is the person to whom the cash payment is intended. This may be the owner himself or his heirs.

Also, the beneficiary may be the bank that issued the mortgage loan.

Let's sum it up

So, there are three types of mortgage insurance:

• real estate insurance;
• disability and life insurance;
• title insurance.

The first is mandatory, the others are not.

The amount of the insurance payment may vary depending on the condition of the apartment and the health of the borrower.

To be honest, before applying for a mortgage to buy a new apartment, I somehow didn’t even think about insuring it. My head was occupied with other things - interest, down payment, etc. But, fortunately, my husband understands this and managed to do everything profitably. Insurance is needed, but you shouldn’t fall for all the insurers’ tricks. We took out insurance for the first three years, because... this period is the most difficult.

Reading time ≈ 5 minutes

To purchase a policy, documents are required confirming the area, technical condition of the building, the loan amount, as well as the market value of the insurance object. All this is required for the insurer to assess its insurance risk and determine the amount of payment.

The insurer must provide:

Most documents are submitted in the form of copies, but it is advisable to have the originals on hand to show them to the insurance company employee. You only need to submit the original insurance application. An extract from the Unified State Register is ordered from Rosreestr or the MFC, a technical plan from the local BTI, and an appraisal report from a certified appraiser (for a fee).

Typically, a mortgage insurance contract is concluded with a mandatory inspection of the apartment, but if the loan amount is small, then it is possible to sell the policy without an inspection.

Important! The insured amount when insuring collateral is always tied not to the value of the property, but to the size of the loan issued. In the event of complete loss of property, the bank acts as the beneficiary of such a policy.

Additional documents

In addition to the main package of documents, the insurer may require additional. For example, if there are suspicions that the housing is listed in the emergency fund, they may ask for a certificate stating that the apartment is not included in the list of emergency objects.

If the building where the apartment is located has not undergone major renovations for a long time, they may request information about when it was last done and when they plan to do it again. You may also need a certificate from a psychoneurological or drug treatment clinic, permission for redevelopment and other documents.

Features of drawing up an application

An application for insurance is written before concluding a contract. It contains all the information about the future policyholder and the main conditions for lending for the purchase of real estate (loan size, terms).

The statement states:

When filling out the application, you should pay attention to the points by which the insurer will assess its risk. For example, the company will be interested in the proximity of the house to high-risk objects, the material of the floors, the presence of fireplaces, gas boilers, saunas, etc. in the apartment.

The insurer may increase the rate if the house does not have a fire alarm, but there is, for example, a fireplace or heater. But if the house is guarded and equipped with all means of fire protection, then the cost of insurance may decrease.

Attention! When filling out an application for insurance, you must provide information about the condition of the building in which the apartment is located. They can be taken from the technical plan of the BTI or an extended extract from the Unified State Register of Real Estate.

Registration of a policy

After checking the documents, the insurer decides to conclude an insurance contract. It will take no more than 20-30 minutes to sign the agreement. The borrower-insurer selects risks:

1. fire, lightning strike, gas explosion;
2. damage to the electrical equipment system;
3. flooding, breakthrough of water supply systems;
4. natural disasters (earthquake, landslide, storm, whirlwind, hurricane, flood, hail or rain);
5. illegal actions of third parties (robbery, robbery, broken window glass, etc.).

The policy is purchased in case of complete loss of real estate from the occurrence of insured risks or in case of property damage. The sum insured is usually the amount of the loan received from the bank for the purchase of the loan.

Where and by whom is the agreement drawn up?

The insurance contract is drawn up by lawyers based on insurance rules and requirements of the Civil Code of the Russian Federation, laws “On the organization of insurance business” and “On the protection of consumer rights”.

Each borrower receives a standard agreement, which specifies only individual tariffs, the amount of the franchise, a list of risks, the insurance period, and the insured amount (the balance of the loan outstanding). The remaining conditions are standard for all policyholders.

Structure and content

The collateral insurance contract consists of about 10 sections. They set out all the conditions of insurance protection: from concluding a contract to receiving insurance compensation upon the occurrence of an insured event.

The contract must indicate:

• contacts of the parties;
• description of real estate (object of insurance);
• sum insured and rate;
• a complete list of insurance risks;
• rights and obligations of the parties;
• liability in case of non-payment of the contract;
• procedure for resolving disputes.

The most important points for the policyholder: everything related to the possible refusal to pay insurance compensation after the occurrence of an insured event. You need to learn what is excluded from insurance coverage and what the procedure is in the event of a fire, flood or other risk.

It is also worth checking that all the information provided (about the loan amount and loan terms) completely coincides with that specified in the loan agreement. Please also pay attention to such points as the insurer’s ability to set compensation limits for individual risks (risk groups), for one insured event, for certain types of property. All these nuances can seriously affect payments in the future.

Important! The policyholder cannot influence the content of a standard insurance contract in any way. However, the bank always provides a choice of partner insurers, and if you are not satisfied with the insurance conditions, you can simply contact another company.

When is it concluded and signed?

The policy cannot take effect before the lien has arisen., so first the mortgage is drawn up, and only then. The sequence of actions is as follows: drawing up a loan agreement, then a purchase and sale agreement, a mortgage, and only then an insurance agreement. The agreement is signed personally by the policyholder or his legal representative.

Conditions and grounds for termination

The procedure for terminating the policy is specified in the contract itself. Severance of relations is possible by mutual consent or on the initiative of one of the parties. For example, insurance can be terminated early at the request of the client, but the insurer must be notified about this (usually a month in advance).

The client can choose another company or repay the loan early. After repaying the loan obligations, you can terminate the contract and return part of the insurance premium paid (minus the costs of running the insurance business).

An agreement to terminate an insurance contract is made in writing, the obligations of the parties terminate from the moment this agreement is concluded, and if it is terminated in court, from the moment the court decision to terminate the contract enters into legal force.

Features of combined and comprehensive insurance

Very often, bank borrowers enter into combined or complex agreements with insurance companies. They stipulate the conditions not only for insurance of the collateral, but also in case of disability or death, as well as title (the risk of losing ownership of real estate).

When drawing up such an agreement, the list of documents must be expanded. The amount of the insured amount for additional types of insurance is usually equal to the loan debt and decreases along with it.

The policyholder will need:

1. medical report on health status;
2. income certificate;
3. a copy of the work book;
4. documents on the history of the apartment (extended extract indicating statistics on the transfer of ownership over the last 5-10 years);
5. extract from the house register;
6. permission from the guardianship authorities for the purchase and sale transaction;
7. certificate of right to inheritance of real estate, etc.;
8. consent of the spouse to sell the apartment.

The insurer has the right to check information about the borrower’s health status, including information about previous illnesses and accidents. This is necessary for risk assessment. An application for comprehensive insurance will provide three tables for each type.

In the life insurance section, you will need to indicate information about the client’s age, illnesses, injuries, and sports. The title insurance section will provide all the information about the transaction and the history of the property. The insurer can check the power of attorney of the representative who participated in the purchase and sale transaction, the rights of heirs, the presence of judicial arrests and encumbrances.

Attention! When purchasing comprehensive insurance, the borrower enters into an agreement with only one company for all three. The terms of collateral and life insurance are tied to the loan term, and title insurance is tied to the statute of limitations (three years).

A mortgage insurance agreement is a mandatory condition for mortgage lending (read more about whether insurance is required and whether it can be waived). To issue a policy, you need to collect a package of documents to assess the insurance risk. You can conclude an agreement with a company from the list of partners of the creditor bank.

The close connection between the concepts of “property” and “insurance” is clear to everyone who has the opportunity to manage property and knows what emotional experiences and material expenses its damage or loss is fraught with.

Therefore, the requirement in itself to purchase collateral insurance for a mortgage loan at the same time as the apartment does not cause protest. Another question is more sensitive: why should I, bearing the burden of a mortgage loan, additionally pay for a transaction, all the benefits of which are received by the bank? After all, an apartment that is pledged can be considered your property only with a certain degree of convention. There is a certain reason for this reasoning, especially since both bank representatives and insurers are not eager to give detailed explanations, limiting themselves to the laconic: “that’s how it’s supposed to be.”

First, let's understand the terminology

A pledge is a way of securing a debt obligation. In a pledge, the creditor is also called the pledgee, and the debtor is also called the pledgor. If the debtor fails to fulfill his obligations under the loan agreement, the rights to the pledged property are transferred to the pledgee. He can dispose of this property at his own discretion in order to pay off the debt.

According to Art. 31 of the Federal Law “On Mortgage (Pledge of Real Estate)”, property insurance of the collateral subject to a mortgage is mandatory. With its help, the risks of complete or partial destruction of property as a result of adverse external influences are covered: fire, flooding, natural disasters, etc. For a mortgage, insurance of the collateral also reduces the risk of non-repayment of the loan due to the loss by the mortgagor of the property that served as material security for the loan.

Collateral insurance agreement is an agreement between the policyholder (who is both the mortgagor and the debtor under the loan agreement) and the insurer (represented by an authorized representative of the insurance company). According to this agreement, the insurer is obliged to make a payment upon the occurrence of an insured event, and the policyholder is obliged to pay the corresponding insurance premium (contribution). The validity period of the insurance contract is tied to the term of the loan agreement during which the collateral is valid.

The beneficiary under a collateral insurance agreement - in the case of a mortgage, it becomes the creditor bank, on the basis of a tripartite agreement between the bank, the debtor (the policyholder) and the insurer. As a rule, the agreement stipulates the procedure for settlements upon the occurrence of an insured event, in particular, the payment of compensation for the pledged property. In this case, the payment amount should not exceed the outstanding balance under the loan agreement.

What are you risking?

When you have just moved into a new apartment, you don’t want to think about the bad. And of course, most likely, you will treat your property very carefully. But, alas, an apartment building in itself is a risk zone, especially if we are talking about a new building or housing that is dilapidated. Your peace of mind is threatened by many factors. Some risks can be minimized, but some are simply impossible to influence with your own will - you can only hope that it will “carry over.” This includes a fire that broke out due to the fault of a drunk neighbor, and a firecracker thrown through a window on New Year’s, and an unsuccessful repair that damaged the load-bearing structures, or, God forbid, someone completely doused you with boiling water or covered you with nanodust... You still need to go here to add household gas explosions, chemical leaks, sudden increases in background radiation and other “horrors of our town” that have already become the talk of the town. And the most unpleasant thing is that even if these nightmares come all at once, and housing either becomes completely uninhabitable or significantly loses in value, no one and nothing will relieve you of the obligation to pay the mortgage.

Agree, there is a big difference in repaying a loan for an apartment where you enjoy family comfort, or for charred remains, the restoration of which requires millions to be invested...

That's why both your heart and the lender's can only be soothed by insuring your mortgage collateral. The completeness of this list depends on the rules of the insurance company you choose. By the way, recently legislators finally agreed that the bank does not have the right to impose the services of a particular insurer on borrowers, so the choice of options has expanded.

However, insuring mortgage collateral in a company accredited by a bank has its advantages, since here, as they say, “everything is covered”, the process takes place without unnecessary red tape, and in certain situations you can get a discount when applying for a policy.

Basic documents you may need when applying for collateral insurance

• Application (according to the insurance company form);
• Inventory of property to be insured;
• A copy of the loan agreement/a copy of the pledge agreement/a copy of the purchase and sale agreement may also be required;
• A copy of the certificate of state registration of the pledge (if registration is required by law), a receipt for payment of the state duty;
• Extract from the register of registration of pledges.

But in each specific case the list can be adjusted by the insurer. Depending on the presented “portfolio”, the cost of the collateral insurance policy under the loan agreement will be calculated.

What to pay for: imaginary and real benefits

Mortgage collateral insurance is typically less expensive than other types of policies. Thus, protecting an apartment from the risk of destruction on average in the market costs 0.2-0.4% of the amount of the issued loan. But since comprehensive insurance is most often used for a mortgage, that is, in addition to the collateral, life and health, as well as the title are also insured (read about these types of insurance on our portal in the “Publications” section), then the overall amount may not be so small .

When calculating the insured amount, the amount of the loan outstanding plus 10% is usually taken as the basis. The individual cost of the policy depends on the insurance company's rates.

It seems that the most logical thing to do is look for a company that will offer the lowest rates... In fact, such savings (as well as savings on insurance in general) can be bad and do you a disservice when an insured event occurs.

What are we talking about?

The Mortgage Law requires insurance of the collateral only for the amount of the mortgage loan, including interest.

This will hardly matter if the insured event never occurs. But if it does, then what will happen: the insurance company will pay off the balance of the debt to the bank... and that’s all. The bank is happy, the insurers are not very happy, but not in such a big loss (the later the insured event occurs, the less amount needs to be paid to cover the debt). But you, although you will keep your home, will not receive any additional funds to eliminate the consequences of the disaster. Or - to purchase a new apartment, if there is little left of the old one...

But there is a way out: collateral insurance not for the amount of the mortgage loan, but for the full cost. In the language of insurers, this is called an “unconditional deductible”. That is, when an insured event occurs, the insurer pays off your mortgage, and the remainder of the full cost of the apartment is transferred to you. Yes, of course, such a policy will cost much more, but only in this case can you be sure that you will not end up with nothing.

The conclusion is clear - neither banks nor insurance companies are lying when they talk about mutually beneficial conditions for collateral insurance. And the legislator in this case shows reasonable foresight, since the requirement for compulsory insurance of mortgaged apartments significantly reduces the risks associated with this type of loans. And most importantly, collateral insurance will allow you in any situation not only to pay off the debt, but also to get free funds at your disposal.