For example: Vladimir decided to buy an apartment on the secondary market. Anton recently inherited this apartment from his father. Vladimir took out title insurance and registered ownership of the property. Six months later, Anton’s brother Sergei arrived from abroad, who did not know about his father’s death and also had the right to inherit. Legal proceedings began, and Vladimir was deprived of his property rights. The insurance company will pay him the amount established by the contract. Sergey will receive his share by inheritance, Anton will receive his share of the apartment, Vladimir will receive the money spent on the purchase.

What do you need to get insurance?

Different insurance companies may have different document requirements. Most often needed:

• passports and copies of both parties to the transaction - the seller and the buyer of the apartment;
• technical plan and cadastral passport of real estate;
• an extract from the house register with information about discharged, registered residents;
• all agreements on the alienation of real estate and the transfer of ownership rights to it over the past 5 years;
• an extract from the Unified State Register of Real Estate confirming the transfer of ownership from the seller to the buyer - the policyholder.

If you plan to contact the insurance company before registering the transaction, you can provide an extract from the Unified State Register of Real Estate later.

In some cases, the insurance company may require additional documents. For example, if the seller sells an apartment received as an inheritance - a death certificate, a will, an inheritance certificate. And if minors are involved in the transaction, permission from the guardianship authorities.

Requirements for the contract

Insurance of real estate transactions and real estate itself is generally regulated by the Civil Code of the Russian Federation, for example, Article 932 of the Civil Code of the Russian Federation. But there is no separate legislative act regulating title insurance, so insurers are guided by the requirements of basic laws.

The contract is usually concluded for a period of 1 to 10 years. Moreover, if you want to pay the cost of insurance at once for the entire period, it will be lower than if you pay it every year - a reduction factor will be applied to the amount. The real estate title insurance contract usually specifies:

• the object of insurance - formally it is real estate, in fact it is the right of ownership and the right to use it;
• insurance cases in which financial compensation for harm is possible;
• date of conclusion of the contract, name and details of the insurance company, passport details of the person taking out the insurance;
• information about the apartment, the title to which is insured, and information about the concluded purchase and sale agreement;
• cost of insurance and insurance payment schedule, including details, exact amount;
• insurance amount - the amount that the company will pay upon the occurrence of an insured event.

The contract must be signed by the person taking out the insurance and the company employee.

An agreement on title insurance of real estate can be concluded both after registration of property rights and before applying to Rosreestr. In any case, it is considered to have entered into force after registration actions have been carried out in Rosreestr, because it is after this procedure that the object of insurance appears - the right of ownership.

It is better to take out title insurance before registering ownership, because it acts as an additional “check” of the home. Insurance employees will examine the documents for housing, the purchase and sale agreement and refuse the service if the risks are too high. Accordingly, you can also refuse to purchase due to high risks. If the insurance company easily concluded the contract, it will serve as additional insurance

Is title insurance required for a mortgage?

A mortgage is one of many financial instruments that carries great risks for the bank. This is largely due to the long term of insurance: for example, in 10–15 years the apartment may burn down, and the borrower himself may die or lose his job. Therefore, banks strive to minimize risks, including through various insurance products.

By law, a person who wants to get a mortgage must only take out insurance of the collateral - that is, the real estate itself - against damage or complete destruction.

Other insurance contracts are not provided for by law; the borrower has the right to refuse them.

But many banks want to reduce risks to a minimum, so they issue mortgages only with comprehensive insurance. Typically this package includes insurance:

• the subject of collateral, that is, the real estate itself;
• the life of the borrower - if he dies, the insurance company will pay the remainder of the debt;
• the borrower’s ability to work - if he is injured and cannot work, the insurance company will also pay money;
• title - if the borrower loses the property, the company will compensate for the financial costs of its acquisition, and he will be able to pay off the mortgage.

That is, the bank itself decides whether to require borrowers to obtain title insurance or provide a mortgage without additional guarantees. But the interest rate for programs that do not require additional insurance is usually higher - this allows financial institutions to at least somehow compensate for the risks.

In any case, voluntary title insurance without a mortgage is possible. This means that if you buy a home with cash, you can also get title insurance. However, it is worth remembering that when purchasing an apartment for cash, when insuring the title, the list of documents requested by the Insurance Company is not reduced. In practice, this type of voluntary insurance is difficult to insure.

How much does title insurance cost when buying an apartment?

The cost of obtaining insurance depends on the policy of the company you contact to obtain it. In any case, it is calculated based on the value of the property itself - the more expensive the apartment, the more expensive it will be to insure the title to it.

Most often, a simple formula is used to calculate the cost of insurance: the price is calculated as 0.3% of the cost of housing under the purchase and sale agreement or according to the cadastral value specified in the BTI documents. For example, if a property costs RUB 2,500,000, insurance will cost RUB 7,500. Other insurers use floating calculation formulas.

In this case, the cost depends on three factors:

• from the insurance period - the longer the period specified in the contract, the lower the cost per year, in addition, in the first year of insurance the price is the highest due to the high risk;
• on the degree of risk - it is assessed individually, a legal examination of real estate documents and the reliability of the policyholder is carried out;
• from the cost of housing - the price at the time of purchase, specified in the purchase and sale agreement, is taken into account.

The average range of prices for title insurance of real estate with such a “floating” calculation formula is from 0.2% to 2.5% of the cost of housing at the time of purchase per year.

The amount that the company will pay in the event of an insured event may also differ depending on the terms of the contract. In most cases, the insurance company will pay the full value of the property at the time the contract is signed. Market prices at the time of the insured event are not taken into account. But there are other forms of insurance - for example, a company can set a certain percentage of the cost of housing and pay it. This is called incomplete property insurance and is regulated by Article 949 of the Civil Code of the Russian Federation.

Where is the best place to get insurance?

Many companies provide title insurance for real estate - you can contact any of them. For example, you can study an independent rating on one of the sites, look at reviews, reliability ratings, and study other evaluation parameters.

But before choosing an insurance company, decide on the choice of mortgage program. Whether you can contact the insurance company of your choice depends on which bank you plan to receive money from. The fact is that banks work only with accredited companies. Each financial company has its own list of insurers.

If you want to buy insurance from a non-accredited company, they will first have to be accredited. This will increase the loan processing time to 1–2 months, depending on the procedure regulations in the selected financial institution. And if you choose from insurers that are already accredited banks, you will be able to obtain insurance on the day of signing the loan agreement.

What insurance events occur with title insurance?

Insured events under title insurance include all cases in which the insured - the buyer of real estate - loses ownership of it. This may happen if:

• the seller of the property did not receive the consent of the spouse for the sale, while the apartment was jointly owned - in this case, the spouse can challenge the transaction and return the property;
• the seller or one of the sellers of the residential space was incompetent, partially incompetent or insane at the time of the transaction, that is, he did not realize the consequences of his actions;
• the transaction affected the interests of minors - for example, if the former owner of the property was a minor and his parents did not provide him with new housing;
• the fact of fraud was proven - for example, if the seller acted under a false power of attorney;
• the previous owners of the home acquired it through threats, deception or fraud - if the seller obtained the home dishonestly, the previous owner can challenge his title and it will automatically be revoked from you;
• the purchase and sale agreement was concluded in violation of any norms prescribed in the legislative acts of the Russian Federation;
• the purchase and sale agreement was concluded to cover up another transaction - this is illegal, so it will be canceled;
• the transaction was completed by the seller under the influence of misconception, violence, threats from third parties or the buyer;
• there had previously been a trial regarding the apartment, and it was resumed due to the emergence of new evidence in the case;
• the housing was inherited by the seller, while the other heirs did not know about the open inheritance or could not refuse or accept it.

In all of the above cases, an insured event occurs - you lose ownership, and the insurance company pays compensation. The insured event also includes the loss of the right to use the property, even if it remains your property. And the encumbrance does not apply to the insured event, because in fact you remain the owner.

What to do if an insured event occurs under title insurance

If legal proceedings have begun in which third parties demand to challenge your ownership of real estate, be sure to take part in court hearings. If you ignore them, the insurance company may launch additional checks and delay the process of paying compensation.

If an insured event occurs and you lose your right to real estate, contact the insurance company. Provide it to your employees:

• identity document - passport of a citizen of the Russian Federation;
• the real estate title insurance contract itself;
• a court decision indicating the deprivation of your ownership of the real estate that is the subject of the agreement.

The insurance employee will accept the documents and tell you what to do next.

Typically, the insurance company pays the money within the period specified in the contract. In a couple of weeks, she checks whether the case is truly insured.

If the insurance company suspects you of fraud, additional proceedings may begin.

If the insurance company deliberately delays payment of compensation, you will be able to file a claim in court. He will review the application, evidence in the case, and if he admits that you are right, he will oblige the company to pay you money. To increase the chance of a positive outcome of the case, you can first contact the company with a written application for payment of compensation, receive a written response and attach it to the claim.

A credit transaction executed under a mortgage scheme is characterized by risks that are relevant to both of its participants. Transaction insurance for several items guarantees the protection of the interests of the banking institution and the borrower. Insurance in case of loss of ownership of the pledged loan property is not mandatory, but it allows you to protect the financial and property interests of the borrower, as well as provide confidence in the future. When an insured event occurs, the insurer transfers to the lender an amount of money in the amount necessary to repay the mortgage. The borrower is relieved of the need to repay the loan for property for which ownership has been lost. The remaining amount of money exceeding the amount of debt is transferred to him for use.

Reason for loss of home ownership

Statistics show that every hundredth owner of real estate loses ownership of it for reasons that are not always in his control. Most often, conflicts arise due to disputes about the invalidity of a purchase and sale transaction. The situation is aggravated by legislative regulations regulating a ten-year time period for the presentation of claims by the seller of real estate to the buyer. Reasons for loss of property rights are also:

• Unpaid mortgage;
• Utility debt;
• Government needs, which is extremely rare;
• Regularized re-sale of one residential space by the developer.

To avoid troubles associated with the loss of housing rights, aggravated by the need to pay a mortgage for real estate that is no longer owned, it is recommended that before signing a mortgage agreement and a purchase and sale agreement, you check the history of the purchased property by filling out an extract from Rosreestr. You should not take out a loan for distressed housing, which is characterized by various complications. The terms of the mortgage agreement in the payment schedule section must be fulfilled unquestioningly, since by agreement of the parties it is possible to seize the property in the event of non-receipt of payments to the current account. An alternative way to solve material and financial problems is to insure the risk of loss of property rights.

What is insurance for such a risk?

The legal procedure for issuing an additional document guaranteeing partial or full compensation for damage resulting from circumstances in which the borrower loses the right to own and dispose of the loan facility is called title risk insurance. The parties to the transaction are the borrower under the mortgage scheme, who is the insurer, the lender and the insurance company. The subject of the agreement is a real estate object, and its meaning is to receive a monetary payment upon the occurrence of an insured event.

Example of title insurance coverage

A citizen of the Russian Federation purchased a two-room apartment worth 6,000,000 rubles from a seller acting under a general power of attorney on behalf of the owner. His absence from the transaction alerted the buyer, and he executed a title insurance contract, in which he indicated the insured amount of 6,000,000 rubles. The owner's relatives, who are his potential heirs, decided to conduct an additional investigation to prove that the transaction was illegal. During the operation, it was revealed that the power of attorney was fake, which was the reason for initiating legal proceedings and making a decision to vacate the home. The buyer lost his apartment, but the policyholder classified the situation as an insured event, which became the basis for a compensation payment, the amount of which corresponds to the cost of the unsuccessful acquisition.

Property of any purpose is subject to protection under the title insurance scheme. The option can be registered in the name of one or more persons who have the right of ownership. It extends not only to the right of ownership, but also to the right to dispose of housing, implying sale, donation or reconstruction. If problematic situations are identified, the consequences of which are associated with the legal loss of the acquisition, the buyer has the opportunity to receive compensation in an amount that allows for an equivalent acquisition.

What are the features?

In a number of situations, a standard purchase and sale agreement and certificate of title may lose their legal force. Using the title insurance option will provide partial compensation for the invested funds. Minimizing the risks of developer fraud using this scheme is impossible when applying for a mortgage on a new building at the construction stage. Title insurance guarantees a partial return of the funds spent on the purchase or assistance in proving the fullness of ownership rights to the purchased area. There are four loss of title insurance programs:

• Standard real estate title insurance;
• Developer's liability insurance, applied in case of purchase of housing in an unbuilt building;
• Insurance of risks of non-repayment of a loan, which is not regulated by law, but is required by banks as mandatory in order to protect their own interests;
• Real estate insurance against all types of physical damage.

All title insurance transactions are carried out within the framework of collateral lending. For this reason, when problems with ownership of a mortgaged property are identified, resolving the issue in favor of the borrower is in the interests of the banking organization acting as a lender. Title issues have many legal subtleties, so most often they are resolved during court proceedings. Insurance payments are made after the completion of the legal process, which has made a decision on the invalidity of the purchase and sale transaction, the subject of which is a mortgaged collateral, or on the invalidity of previous real estate transactions completed before the loan was issued.

What are the conditions?

Property owners, which include not only individuals, but also business entities, have the right to obtain title insurance. Before completing an insurance transaction, it is necessary to study the offers of insurance companies and choose the most suitable one according to the terms of cooperation of the insurer. It must be financially stable and operate under a license. It is recommended to choose the company with which it will be more profitable to cooperate.

The leader among insurers is ROSNO. Title insurance will cost from 1.5 to 7% of the appraised value of the property. The next rated company is Ingosstrakh, which requires from 1 to 4% for concluding a contract. The lowest prices of 0.3% are from RESO-Garantiya and Rosgosstrakh.

The title insurance rate is determined taking into account the existing degree of risk, which is assessed on the basis of the information displayed in the submitted set of documents. To conclude a transaction, you must collect all the necessary papers. You should take a responsible approach to their preparation, since information from the documents can subsequently become the basis for assessing the likelihood of filing a claim against the new owner.

Conclusion

There are no standards in Russian legislation that would regulate insurance services in the field of risks of loss of property rights to real estate. Therefore, the procedure for cooperation between the policyholder and the insurer from this perspective is determined by the insurance company. The subject of the relationship is the acquired real estate. At the same time, its intended purpose is not important. Transactions with a high degree of risk require the policyholder to pay a higher insurance premium, which is explained by the insurer’s desire to minimize its losses. He prefers to limit his own risks when covering the loss of property rights due to reasons beyond the control of the insured.

The property raised, one might say, a perplexed question: “What is title insurance and why is it needed?” Protecting the loss of ownership of any property, especially those purchased on the secondary market, is considered necessary. This is no less important than insuring the apartment or house itself.

This measure should not be considered at all as another way to squeeze money out of the participants in the process. This technique is considered reliable financial protection.

What is title insurance?

By purchasing real estate, any buyer also receives the title of owner. It is its loss, along with the right to purchase property, that is the subject of this type of insurance.

A bona fide buyer of real estate will not be protected from a financial point of view in the event that circumstances are discovered that make his transaction with the seller invalid.

In the event that previous real estate agreements were carried out with any violations, the buyer will lose both the purchase and the money paid for it, which no one will return to him.

Voluntary or forced?

Title insurance can be done voluntarily. It is not always carried out at the request of the banking institution that issues mortgage loans.

Title insurance makes it possible to reduce the risks of any adverse consequences that are likely in the future. The events have already happened, but they are unknown to the buyer of the property at the time of the transaction.

This is especially relevant if the property has already gone through a number of purchase and sale transactions. It is extremely difficult to independently check their cleanliness.

The insurance company, immediately before concluding an agreement, must conduct such an inspection in order to determine the degree of risk. Actually, the price of the service will depend on this.

What is covered by title insurance?

The title implies, first of all, insurance of ownership not only of a house or apartment, but also of a plot of land. The same applies to non-residential premises along with unfinished construction objects and the like.

The subject of protection can be not only secondary housing. Many people ask why title insurance is needed in a new home. Any owner can lose a new apartment as a result of fraudulent actions on the part of a developer who, for example, sold a house twice.

All kinds of unauthorized and illegally erected buildings or premises that were removed from the housing stock or built in violation of safety standards are not subject to this type of insurance. This category includes emergency housing.

Occurrence of an insured event

The question of what title insurance is became clear thanks to the material already presented. What other categories are characteristic of this phenomenon?

The insured event in this situation is the termination of rights to own property. The immediate event that leads to special payments is a court decision declaring a previously completed transaction for the purchase and sale of real estate or the documents on the basis of which it was carried out invalid.

The reasons why the court has the right to cancel a transaction are the following factors:

• It was committed by an incompetent citizen.
• The transaction with common property was carried out by one of the spouses without obtaining the consent of the other.
• The agreement is enslaving in nature, that is, it was concluded under threat.
• The transaction was carried out fraudulently or illegally. For example, by the annuity payer without obtaining the necessary consent of the recipient. Or when the owner’s authorized representative could exceed his authority, and so on.

• In any situation related to fraud.
• The transaction was carried out by a person who is not aware of his actions.
• The rights of any unaccounted heirs were violated.
• Errors were made during the preparation of documents.

The title insurance contract may provide for another event that results in the loss of the owner's rights. Such an incident is the decision of the authorities to confiscate or nationalize, as well as to destroy the property that was the subject of the transaction.

Title Insurance Rates and Costs

The cost of title insurance directly depends on a number of the following factors:

• Is the property a secondary or new home?
• Amount of insurance. That is, the market price of the subject of insurance.
• The number of purchase and sale transactions that were carried out with real estate over the entire period of its existence.
• The insurance period, for example, is from one year to ten years.
• Underwriter's conclusion.

Who is an underwriter?

The subject in question is an employee who assesses risks as part of accepting a specific object for insurance. The underwriter assesses the possibility of special events occurring. Depending on the terms of the process, this person determines the rates and how much title insurance costs.

It is interesting to note that the procedure for title insurance of an apartment in new buildings, as a rule, is not expensive. Many companies do not even use reducing coefficients, but rather separate tariff options for insurance of new housing and secondary real estate.

The more transactions were made over the entire period, the higher the increasing coefficient will be. The underwriter can make an opinion on increasing the price of insurance. In addition, this person decides on the use of reduction factors.

The larger the sum insured and the term, the more expensive the service will cost. In general, as practice shows, the average rate on the market ranges from 0.2 to 3% of the amount of the service.

Sum insured

The rate paid cannot be more than the actual value of the property at the time the title insurance transaction is made, but may be less. The banking institution that issues the mortgage may require you to complete this process.

As part of minimizing its own risks, the bank offers to insure the amount of loan debt, which is usually less than the full cost of housing. If this figure is lower than the value of the property, then incomplete protection occurs.

This means that when an insured event occurs, the payment will be made not in the amount of the general rate, but in proportions. For example, if an apartment costs one hundred rubles, but is insured for eighty, then only 80% will be paid.

Thus, the bank itself will be satisfied, but the policyholder will find himself without an apartment, as well as without funds. This is why it is advisable to enter into a loss of title protection agreement for the full value of the property being purchased. Then, immediately after the requirements of the financial organization are satisfied, the remainder of the rate will be paid to the participant in the protective process.

Conclusion of the contract and documents

The following documents are required for title insurance and, accordingly, copies of some of them:

• Title documentation in the form of a certificate of registration of property rights.
• Contract for the purchase and sale of real estate.
• A paper that confirms the value of the item insured.
• Technical certificate.
• House book or provision of an extract from it.
• A certificate that must be obtained from the guardianship and trusteeship authorities if there are children under the age of fourteen.

It is important to consider that the insurance company has the right to request any other documentation that is relevant to the case to conduct an insurance risk assessment.

How is the price of a property confirmed?

The cost of the insurance item is usually confirmed by the following documents:

• Conclusion from an independent appraiser.
• Cadastral passport, which should indicate its value.
• Purchase and sale agreement, payment documents or notarized receipt.
• Documents that confirm construction costs.

Often, in order to reduce taxation, sales contracts do not indicate the real price of the object, but a significantly reduced one. In the event that a similar contract is provided as part of confirmation of the cost of the purchased home, the insured amount will be just as low.

Validity

The standard period of title insurance typically ranges from one year to ten years. This is due to the limitation periods within which transactions can be declared invalid.

Banks generally require that the term of the title insurance be consistent with the period for which the loan is being extended. When determining the limitation period, it is very important to take into account the moment when its calculation begins.

As part of the insurance of real estate transactions, it is important to take into account various provisions of the law, according to which the deadlines for appealing the ownership of a purchased apartment are determined.

Payments and insured event

What is title insurance when that very event has already occurred?

As a rule, the following documents serve as documents that confirm such an incident:

• Statement of claim submitted by the plaintiff with a note indicating the date of its receipt by the judicial authorities.
• A ruling on his admission to the judicial process.
• A court decision that has entered into force.
• Documents from other competent authorities on the causes, nature, and, in addition, the amount of damage.

All documents must be provided to the insurer along with the main party's statement of damage. This must be done within the time limit established by the insurance rules.

The time limit for notifying the insurance organization about the occurrence of an incident is three days. Violation of this period may cause refusal to pay insurance compensation.

In addition, the policyholder is obliged to give the representative a power of attorney to appeal, and, in addition, to protest the court decision. The insurer has the right to request absolutely any documentation related to this case.

The decision to provide payment can be made by a specialist in a pre-trial manner if supporting documentation is available and subject to the fulfillment of obligations under the agreement.

If at the time of the event the person has not paid or is late in paying the next installment under the agreement, then this monetary portion is withheld from the total amount. All cases in which the insurance company has the right to refuse compensation are detailed in the rules of this service.

It is important to be careful when concluding a contract and do not hesitate to ask a specialist any questions. After the statute of limitations has expired, after a completed transaction for the purchase and sale of real estate, unexpected applicants for housing may appear.

Title is a document confirming ownership.

Title insurance when buying an apartment - what is it? Title insurance protects the interests of home buyers.

Insurance is provided against the risk of loss of purchased property when another owner appears.

This may occur due to the inability to fully verify that other citizens do not have housing rights. Only registration of apartment title insurance will protect the buyer from the loss of his money and compensate for his losses.

Not all insurance companies provide title insurance for apartments. But the main large insurers provide such a service.

This type of insurance is issued not only for the purchase of apartments on the secondary housing market, but also, first of all, for its purchase with a mortgage.

In this case, if you do not insure, you may, in addition to losses, also end up as a debtor to the bank. To be left without an apartment, without money and to pay off a debt for a mortgage that no longer exists.

Risks it protects against

The main risk of insurance is the loss of the right to own property.

If an insured event occurs, the court must declare the purchase transaction invalid and the company that insured the property returns the market value of the purchased property, provided that the insurance is properly completed.

Another risk from which title insurance for an apartment saves you is the reclaiming of real estate from illegal possession.

Occurs when, as a result of fraud, an apartment was sold against the will of its real owner.

Reasons why loss of title may occur:

• forgery of documents;
• registration error;
• the owner was in prison;
• the owner was undergoing treatment for a long time;
• the owner at the time of the transaction was a minor citizen;
• a double sale of an apartment (housing cooperative) was completed.

Important! Housing in disrepair, unauthorized buildings, as well as premises converted from residential to non-residential are not insured.

The insurance company will not reimburse the value of property under the following circumstances:

• the apartment was sold or donated during the insurance period;
• the apartment was destroyed;
• the apartment was redeveloped without approval;
• The apartment is subject to seizure for debts.

Registration procedure

When deciding to purchase real estate, in addition to a realtor, you should also contact an insurance company at the preparatory stage of the transaction.

Moreover, if the insurer refuses to provide this service, it is worth canceling the purchase of this apartment, since the insurer’s refusal is a warning to the buyer about the unreliability of the transaction.

You can also insure yourself after registration. If the insurance company refuses, the buyer will have to resign himself to purchasing an uninsured apartment.

To obtain title insurance, you must submit an application to the insurer. He will have to independently conduct an examination of the property, review the documents of the purchased property, and also take into account all additional circumstances that may affect the possibility of establishing an insured event.

The insurer recommends taking certain measures that can reduce the risk of purchasing real estate. After the examination, a verdict is issued to issue or reject title insurance. If the answer is favorable, the contract is signed and the policyholder pays the insurance premium. If the result is negative, the buyer should think about the purity of the transaction.

Important! If an insured event occurs and the case is considered in court, you will need to present a title insurance contract, and not just a policy, as some insurers offer.

If this agreement was concluded before the purchase of housing, and under any conditions the deal fell through, the agreement will be canceled and all payments to the policyholder will be returned in full.

How much does title insurance cost for an apartment?

The cost of title insurance for an apartment, the amount of the insurance premium, depends on several factors:

• housing category: secondary or new building;
• insurance period. In the first year of registration, the tariff is the highest, since the risk of an insurance situation is increased.

  For all subsequent years, the risk is reduced and the tariff accordingly is also reduced.

• cost of the apartment. Typically, insurance is provided at market value.
• degree of risk. An individual examination is carried out by a real estate lawyer. It takes into account how many times the apartment has been sold, or when buying a new building, how reliable the developer is.

Title insurance prices range from 0.2% to 3% of the home's market value. When an insurance company agrees to conclude a contract and assigns a too high rate, the buyer must understand that the risks are very high. It is worth turning to buying another apartment. If the tariff is set at the market average, such a transaction is less risky.

The desire to insure the title usually arises from the buyer when the risks are high.

Insurers are ready to provide services at low prices. Finding a compromise between them occurs individually in each case. Title insurance in a new building is cheaper. Many tariff companies use a reduction factor for this purpose.

The insured amount should not be less than the value of the property, otherwise payments will be for less than the full value of the home.

The following documentation is required to obtain title insurance:

• documents of the apartment sellers;
• certificate of registration of property rights;
• contract of sale;
• document with estimated value;
• real estate passport;
• extract from the house register.

Important! This insurance provides coverage for risks leading to loss of property rights, but does not protect against the right to encumber the apartment.

If one of the former residents has renewed the right of residence in it, the housing will be your property, but a stranger will live in it.

Ingosstrakh and its services

The presence of a policy from Ingosstrakh is a guarantee of the purity of the concluded transaction.

Title insurance when purchasing an apartment at Ingosstrakh offers coverage for the following risks:

• deprivation of property rights;
• restriction of property rights (encumbered property).

Ingosstrakh offers mortgage insurance. In addition to property insurance, it also includes title insurance. With this service, Ingosstrakh undertakes to pay the bank the entire balance of the loan.

The advantage of contacting Ingosstrakh:

• fast processing within one working day;
• registration and payment in any place convenient for the policyholder;
• discounts on other types of insurance.

How much does title insurance cost when buying an apartment in Ingosstrakh? The basic title insurance rate is 0.2%-0.35% of the market value of the property. The contract is concluded for a period of 1 to 5 years.

During the validity of the contract, the insurance amount may be increased if the apartment has been renovated.

What risks does Ingosstrakh offer to protect real estate from:

• the deal is under threat;
• non-compliance with the rights of minors;
• transactions with incapacitated persons;
• failure to comply with the law;
• transaction with a person who does not have the right to do so.

Whether or not to conclude an agreement on title insurance is up to each citizen.

But if you prefer to protect yourself from unnecessary risks, then when drawing up a contract, it is important to carefully read all its clauses.

Study exactly what risks associated with the title the insurance will cover, and in what situations it is useless.