When applying for a mortgage, the client is required to enter into an insurance agreement. The borrower should be aware that not all types of insurance are required with a mortgage. In this article we will look at what types of mortgage insurance you can refuse, what risks are insured with a mortgage and how much the insurance policy costs. Let's look at the TOP 9 well-known companies where you can insure your mortgage, and 6 proven ways to save on insurance.

The mortgage loan is issued for long term, and therefore poses a particular risk to the lender. One of the options for minimizing risks is insurance. This gives the bank additional confidence that the client will pay him even in the event of temporary disability or complete loss of real estate.

Expert opinion

Certain types of insurance are mandatory when concluding a mortgage agreement. Thus, on the basis of the Federal Law of July 16, 1998 No. 102-FZ “On Mortgage”, real estate pledged to a credit institution is subject to compulsory insurance. Therefore, receiving mortgage loan, the borrower is obliged to insure the structural elements of the purchased housing.

In real life, banks are forced to purchase other types of policies. They explain to their clients that if they refuse voluntary insurance they will increase the interest rate on the loan or simply not issue it. Thus, in the absence of a life and health insurance policy, most lenders raise rates by 1-2%.

Mortgage Insurance Calculator

The borrower can pre-calculate the cost of the insurance contract using a special online calculator. It can be found on company websites (for example, a calculator from Ingosstrakh) or on our website.

You must enter in the form:

• city;
• bank;
• type of insurance;
• object data;
• loan balance;
• information about the borrower;
• start date of the contract.

Using the calculator, you can calculate the cost of insurance for an apartment, life and health, and title. Calculators are available on the websites of most insurance companies. By entering the same data, each calculator produces a result based on the conditions of a particular insurer. The client can compare them and choose which is cheaper.

We suggest using our calculator to preliminary calculate the cost of mortgage insurance.

3 types of mortgage insurance

For a mortgage, there are 3 types of insurance: real estate, title, life and health. The collateral is subject to compulsory insurance in accordance with the law. Other types are voluntary.

Real estate insurance

The purchase of a real estate insurance policy is required not only by Federal Law No. 102-FZ, but also by the Civil Code of the Russian Federation. When a mortgage agreement is signed, the purchased property is pledged to the bank. Before this, it must be insured against partial or complete destruction or damage.

IN mandatory Only structural elements are insured - walls, ceilings, roof, foundation. Engineering systems inside the home, furniture, repairs will not be insured. If an insured event occurs, the damage is compensated not by the borrower, but by the insurer.

Insurance situations include:

• fire, lightning strike;
• flooding;
• natural disasters;
• gas explosion;
• hooliganism, vandalism by third parties.

The policyholder must immediately notify the insurer of the occurrence of an insured event. For each incident, an inspection is carried out to determine the cause and assess the damage. If the insurer proves that the cause of the incident was the intentional actions of the borrower or other interested parties, the client will compensate the bank for losses.

Legal advice:

A lawyer on mortgage insurance issues provides advice on our website. The specialist examines each case individually. Just leave your question in the form on the right, or request a call, and a lawyer will call you shortly!

Borrower's life and health insurance

Life and health with a mortgage are insured voluntarily. However, banks literally impose this insurance when applying for a mortgage, and in the absence of it they raise interest rate by 1-4%.

Insured events in such a situation will be:

1. Disability of 1 or 2 groups.
2. The death of the borrower.

Most banks require that the insurance contract include the risk of disability or death as a result of:

• Diseases - heart attack, stroke, pneumonia, cancer, etc.
• Accident - road accident, lightning strike, plane crash, fire, animal attack, etc.

In case of death of the borrower insurance company will repay the balance of the loan or part of it. However, the insurance will not pay if death or disability occurs as a result of suicide or intentional injury to health. They also will not pay for injuries sustained while intoxicated or under the influence of other substances.

Be careful! Some insurance companies set low prices for insurance policies to attract customers. At the same time, only accident insurance is left in the text of the contract, and illnesses are excluded. The name of the contract remains the same so that the client does not understand it. In the event of disability or death as a result of illness, the borrower or his co-borrowers will pay the mortgage themselves, if the client was insured only against accidents.

Title Insurance

Title insurance protects the borrower's ownership of the property and is not mandatory. In some cases, a bank lawyer may insist on taking out this insurance when he sees additional risks when studying real estate documents. Statistics show that 2% of real estate purchase and sale contracts can be challenged in court.

The reasons for this may be the following:

• Infringement of children's rights when selling property.
• Incapacity of the seller to complete a transaction as a result of alcohol or drug addiction or mental disorder.
• Fraud.

The bank will recommend insuring the title if the package of documents does not include an extended extract from the house register, or the owner of the apartment being purchased is a minor.

The borrower bought an apartment on the secondary market with a mortgage. After 1.5 years, it turns out that the seller’s daughter, who did not know about the sale, has the right to the property. The girl is demanding through court that the apartment be returned to her. When taking out a mortgage, the borrower, at the lender's suggestion, took out title insurance. All losses associated with this proceeding and its consequences will be covered by the insurer.

Such risks arise only when purchasing secondary real estate. Typically the bank requires title insurance for the first 3 years. If you purchase an apartment in a new building from a developer, the lender will not offer this type of insurance.

6 factors that affect the cost of insurance

By the amount insurance tariff many factors influence. For different borrowers, the cost of insurance can vary by 5-10 times. The price reflects the type of insurance, age, gender, health status of the borrower, bad habits, and profession. Let's take a closer look at these factors.

Gender and age

For young clients the tariff will be lower than for older people. This is associated with health status and the likelihood of a longer life. Purchasing insurance is cheaper for women than for men. However, in this case the difference is not as great as when taking into account the age factor.

Health status

For a life insurance contract, this is the most important factor. Even healthy people can be charged a high tariff. Therefore, before applying for a policy, it is better for the client to undergo a full medical examination and prove the absence of predisposition and heredity to serious diseases.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

If, when applying for insurance, the client concealed the presence of a serious illness, the policyholder will refuse to pay when an insured event occurs.

Also, when filling out the form, the client fills in information about availability bad habits. All questions must be answered honestly; further service and the likelihood of payment in the event of an insurance situation depend on this.

Overweight

This factor is directly related to the previous one. People with large weights have a high predisposition to a number of diseases. Therefore, the risk that an insured event may occur is higher. Therefore, one cannot count on low tariffs in this case.

Profession

Insurance companies pay attention to the profession potential client. Some work in an office, while others work as a high-altitude installer or test pilot. The last two activities involve great risk. This means there is an increased risk of accident or death. The higher the risk to life and health in the client’s field of activity, the higher the insurance rate will be.

Alexey works as a fireman, and Maria works in an office as an accountant. They purchased life and health insurance from the same company. Maria paid 30% less than Alexey. The differences in cost are associated with the greatest risk to life and health in Alexey's case.

Housing type

The price of an apartment insurance policy depends on the year of construction, fire danger, and construction material. The condition of secondary housing and new buildings is radically different. The risk of destruction or damage to secondary real estate is higher. This entails an increased tariff when concluding a contract. Some types of housing cannot be insured at all. Thus, insurance companies practically no longer accept insurance for older apartments.

Loan amount

The amount of insurance directly depends on the loan amount, since the calculation takes a percentage of the total amount owed. How more amount mortgages, the higher insurance premiums. However, as the loan is paid off, the insurance company applies an increasingly lower rate as the total amount owed decreases.

The above points will be more clearly and clearly demonstrated by the table below:

Factor	How does it affect the cost of insurance?
Floor	For women the price is lower
Age	Young people pay less
Health status	For healthy people without bad habits, minimum tariffs apply
Overweight	Overweight people pay more
Profession	A profession with an increased risk to health and life is the reason for raising tariffs
Housing type	It is cheaper to insure an apartment than a house. The older the house, the more expensive the policy. The better the condition of the home, the cheaper the insurance
Loan size	How more credit, the more expensive the insurance

TOP 9 companies that insure mortgages

Insurance conditions are different everywhere. Below are 9 major insurance companies where you can insure yourself when getting a mortgage.

Ingosstrakh

The company offers clients the choice of concluding separate contracts for several types of insurance or one comprehensive one. Ingosstrakh does not have strict tariffs. The calculation is made on an individual basis. At early termination contract, the balance of the insurance premium will not be returned here.

You can apply for insurance online on the official Ingosstrakh website. The insurance company provides a 15% discount when purchasing a policy online. The policy itself will be sent by email. All you need to do is print out the policy, sign it, and provide it to the lender.

If the company is contacted by a client who, during the term of the mortgage agreement, decides to change his company to Ingosstrakh, he will be given a discount ranging from 5% to 15%. If the loan amount does not exceed 3 million rubles, then the decision on the amount of the bonus is made by the regional office. Otherwise, you will have to wait for a response from the central office.

Rosgosstrakh

Property here is insured at a rate of 0.2%. Life and health insurance for Sberbank will cost on average 0.3% of the debt amount for women, and 0.6% for men. For others credit institutions rates are set at 0.17%, 0.28% and 0.56%, respectively. In agreement with the head office, a discount may be provided.

As the debt is paid off, insurance premiums will decrease. The contract can be terminated before the due date only if the loan is repaid early. Otherwise, you can only claim 35% of the unused amount.

RESO-Garantiya

This insurer sets different rates depending on the bank where the client receives credit. Sberbank has tariffs on average of 0.18% for property insurance and 0.26% for life and health. For other banks, it is possible to conclude an agreement with tariffs of 0.1% in the case of real estate insurance.

If you change companies, the unused balance of the premium will be returned minus the costs incurred to maintain the policy. The company periodically holds promotions where a discount is provided when concluding a mortgage insurance contract in the first year.

Alfa Insurance

This company offers title and contents insurance at a rate of 0.15%. It is possible to obtain comprehensive insurance. You can change the organization to another, Alfa-Insurance will return the balance of the unused premium.

VTB Insurance

VTB company offers comprehensive insurance when concluding a mortgage agreement. The tariff for comprehensive insurance is 1% of the outstanding balance. If the borrower decides to change companies, then he should not count on getting the rest of the premium back. When paying for insurance services several years in advance, the company will provide a discount.

Sberbank insurance

The maximum value of insured property in Sberbank is 15 million rubles. The tariff is set at 0.25% of the debt amount.

The average health and life insurance rate is 1%. When a customer cancels this policy, the mortgage rate increases by 1%. If the borrower takes out a life insurance policy, the rate remains the base rate. The list of insurance cases at Sberbank Insurance is very large. You can choose from it individual risks and insure only them.

It is difficult to switch from Sberbank to another insurance company. By law, this can be done, but the contract will be drawn up in such a way that the balance of the insurance premium will not be returned to the borrower.

VSK

VSK offers to insure your apartment, life and health. The first type of insurance will cost 0.43%, the second – 0.55%. In the case of life insurance and for loan amounts above 4 million rubles, a medical declaration will be required.

The VSK company is loyal to those who decide to change insurers during the loan term. The premium is refunded based on the actual time of use of the policy.

Alliance (ROSNO)

Property insurance at Alliance Insurance Company costs 0.16% of the cost of housing. A health and life insurance policy will cost 0.66%. The company is not accredited by Sberbank, therefore it does not accept bank clients for service. The company has reduced the number of offices, so services may not be available in some regions.

SOGAZ

Structural insurance in SOGAZ will cost 0.1%, life and health – 0.17%. You can also take out a loan insurance policy. In this case, a tariff equal to 1.17% of the outstanding balance applies. You can terminate the contract ahead of schedule only if you repay the mortgage early. In this case, the client will receive back the unused balance of the premium.

Where is mortgage insurance cheaper?

In the table below we have summarized all insurance companies with tariffs and data from the reputable rating agency Expert RA. Companies are arranged in order from more profitable to less profitable.

The cheapest way to insure a mortgage is with SOGAZ, which, in addition to inexpensive tariffs, has the maximum level of creditworthiness and financial reliability. RESO is in 2nd place, Ingosstrakh is in 3rd place. The last place went to VSK with expensive tariffs and a moderately high level of financial reliability and creditworthiness.

Insurance company	Property	Life and health	Title	Rating of the agency "Expert RA"
SOGAZ	0.10%	0.17%	0.08%
RESO Guarantee	0.10%	0.26%	0.25%	ruAA+ (high reliability, creditworthiness and financial stability)
Ingosstrakh	0.14%	0.23%	0.20%	ruAA (high credit capacity, financial reliability and stability)
Alpha Insurance	0.15%	0.38%	0.15%	Not in the ranking
Alliance (ROSNO)	0.16%	0.66%	0.18%	ruAAA (maximum level of creditworthiness, financial reliability and stability)
Rosgosstrakh	0.17%	0.28%	0.15%	ruA (moderately high level of reliability and financial stability)
Sberbank Insurance	0.25%	1%	-	ruAAA (maximum level of creditworthiness, financial reliability and stability)
VTB Insurance	0.33%	0.33%	0.33%	Not in the ranking
VSK	0.43%	0.55%	-	ruA+ (moderately high level of reliability and financial stability)

Obtaining a policy in 5 steps

The bank cannot force the borrower to insure the mortgage with a strictly defined company. Every mortgage bank has a list of accredited insurers it works with. The client has the right to compare prices and choose the most profitable company from this list.

Step 1. Choose an insurance company

First of all, you need to choose an insurance company. However, the choice should be made from a list of companies accredited by the bank. On the one hand, this narrows the client's choice. On the other hand, if an insurance organization has received accreditation from a bank, then you can be confident in its reliability.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

The accreditation procedure involves a thorough check of the insurer by the credit institution. Only a company that has a positive reputation and experience in the market, satisfactory financial condition and solvency.

What criteria are used to select insurers?

1. Duration of work in the insurance market.
2. Tariff size.
3. The company's rating according to independent experts (Expert RA Agency).
4. Promotions and special offers.

The bank provides the client with a list of insurers with whom it is possible to conclude an agreement. The borrower will analyze proposals for certain areas of their activity and select the organization that offers the most favorable conditions.

Step 2. Decide on the type of insurance

If it is mandatory to insure property, then the borrower makes a decision regarding life and health insurance independently. Therefore, you should pay attention to the conditions for issuing two policies at once.

The company may offer a discount when concluding 2 contracts. However, the client has the right to take out one mortgage insurance with one company, and a second one with another. This is not forbidden. The main thing is that both companies are accredited.

Some insurers offer comprehensive insurance contracts. In this case, by concluding only one contract, the client insures several risks at once. If not only property, but also life is insured, most lenders reduce the mortgage interest rate by 1-2%.

Step 3. Collecting a package of documents

Different insurance companies may require different packages of documents depending on the client’s situation and type of insurance.

The minimum package of documents is as follows:

• Russian passport of the borrower;
• application for concluding an insurance contract;
• residential purchase and sale agreement;
• documents confirming the ownership of the purchased property.

For life and health insurance, medical certificates will be required certifying the condition of the borrower at the time of insurance. Sometimes the insurance company requests a report on the valuation of real estate, an extract from the house register, or a certificate from the BTI.

Step 4. We provide documents for verification

When the complete package of documents has been collected, it must be submitted to the insurance company for verification. Depending on the results of the inspection, a decision will be made to conclude an insurance agreement or to refuse insurance. The documents also affect the tariff that will be applied to the client.

Step 5. Pay for insurance and receive a policy

If the insurer has approved the documents, the client signs the insurance contract, pays the cost of the policy and receives it in his hands. Before putting your signature, we recommend that you carefully read the contract to clarify any unclear or controversial points.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

This document specifies the conditions on which the insurer will rely upon the occurrence of an insured event. Therefore, the client is required to fully understand what he is agreeing to. This determines under what circumstances the insurance will be paid to the client and under what not. If necessary, show the contract to a lawyer who will explain in detail the consequences of all the rights and obligations of the parties specified in it.

6 Ways to Save on Mortgage Insurance

The amount under the insurance contract can be reduced legally. This should definitely be used if the borrower decides that he needs a voluntary insurance policy.

1. Avoid additional insurance

Only property insurance is mandatory. Insurance of other risks remains at the borrower's choice. The bank does not have the right to refuse to issue a loan if the borrower does not insure life and health. However, the interest rate on the loan may increase.

It is worth refusing health and life insurance only if the lender does not raise the interest rate in the absence of it. In other cases, it is more profitable to insure yourself and get a lower loan rate.

You can create an individual insurance program based on your own preferences. The borrower may not insure risks that are unlikely and not relevant in his case, and save on insurance.

2. Do not agree to insurance from the bank itself.

Bank loan managers make every effort to ensure that the borrower insures the mortgage with the bank's insurance company. Services are aggressively imposed, even to the point of threatening to refuse to issue a mortgage. At the same time, sometimes clients do not realize that they can find a better offer.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

We are talking about collective life and health insurance programs for borrowers. The client is offered to simply sign an agreement and join the program. The cost of insurance is 2-3 times higher. Therefore, we advise you to find out the conditions of other insurers and not agree to insurance from a bank. In the table above, we have already presented the conditions of well-known insurance companies.

3. Make the woman the primary borrower

If a family takes out a mortgage, then the main borrower should be a woman. The insurance rate for women is calculated at a lower rate than for men. Sometimes the difference is up to 2 times.

4. Participate in promotions

Insurance companies regularly hold special promotions to attract new customers. If you track offers on insurers' websites, you can find great deals and save from 5 to 25%.

5. Buy an apartment in a new building

The title is insured only when purchasing a secondary property. No one except the buyer can apply for an apartment in a new building. Therefore, title insurance is not required to be included in the program.

6. Discounts for regular customers

If you have an MTPL or CASCO insurance policy, you can contact this company for services. When applying for mortgage insurance, use this argument - many companies have the practice of providing discounts to regular customers.

Is it possible to refuse insurance?

It is not possible to completely refuse insurance services. At least one agreement will have to be concluded - property insurance is mandatory. The lender may insist on title insurance if it sees reasons for this. The borrower may or may not take out a life and health insurance policy voluntarily.

An insurance company can only be selected from among firms accredited by a specific bank.

You should not agree to the insurance offered by the bank until you know the conditions of other accredited companies.

The insurance rate depends on gender, age, health status, profession and other factors.

You can not indicate all risks, but select the most important ones for the borrower.

Before applying for a policy, you should familiarize yourself with the terms and conditions of potential insurers in order to choose the most favorable conditions.

Read the insurance contract carefully, clarify any controversial issues, and have a lawyer read the contract before signing it.

Mortgage insurance- this is a way to protect the financial interests of the borrower in repaying the loan in the event of unforeseen circumstances and one of the mandatory requirements of banks and other credit institutions that issue mortgages and loans.

Ingosstrakh offers its clients comprehensive mortgage programs developed and agreed upon with banks and credit organizations.

Remember that the presence of a policy is required to be submitted to the bank, and the choice of the insurance company is always yours.

At the same time, the cost of the policy may also differ depending on the company chosen, so we advise you to find out how much it costs to insure a mortgage by using our calculator.

Structural elements

Insurance against fire or explosion, illegal actions of third parties, destruction due to natural disasters, etc.

Life and health of the borrower

Temporary incapacity for work, disability of group I or II or death of the borrower/co-borrower due to an accident or illness

Loss of property

Recognizing the transaction as invalid, returning the property to the former owner

What do you need to know to take out a mortgage insurance policy?

Filling up the policy

When applying for a mortgage or loan, an insurance policy may be required, which will include one risk or a complex of them:

1. Insurance of the collateral (apartment, house). Only structural elements are insured.
2. Death and disability of the borrower/co-borrower.
3. Title Insurance.

Further servicing of the mortgage policy:

When concluding a multi-year mortgage insurance agreement with Ingosstrakh, you will be able to pay the next installments online on our website or in your personal account.

Bank conditions:

According to the requirements of some banks, the insurance amount can be increased by 10-15% of the loan amount/loan debt balance. Select an insurance policy

Rosvoenipoteka

A special insurance product for clients purchasing housing under the Military Mortgage program.

• Apartment insurance.
• Only structural elements are insured.
• Sum insured from 200,000 to 5,000,000 .
• A military mortgage insurance policy is necessarily accepted by such banks participating in the program as Promsvyazbank, Zenit, Sberbank. The product is recommended for use by the Federal State Institution "Rosvoenipoteka".

How to apply for a mortgage insurance policy?

How does this work?

When concluding an agreement with a credit institution, one of the mandatory points is the provision insurance policy. It is usually needed at the time the loan is issued.

Check with the bank for insurance coverage requirements, or apply for a policy online (if you meet the bank’s requirements) and simply submit the policy to the credit institution.

The advantage of insurance for mortgage lending in Ingosstrakh

Ingosstrakh is accredited by most credit organizations.

The decision on the full cost of the policy with a complete set of documents is made within 1 business day.

Signing and payment for the policy - in our office, at the transaction in the bank or in the office of your representative.

What documents are needed?

1. When insuring the collateral - a loan agreement and documents confirming ownership, a copy of the report of an independent appraiser.
2. For life insurance - an application for insurance of the Borrower and (or) Co-borrower. It must be sent by email. If necessary, the insurance company may send you for a medical examination or request additional medical documents.
3. When insuring title, provide copies of title documents for the collateral.

What affects the cost of mortgage insurance?

1. Volume requirements of the lending bank insurance coverage.
2. Mortgage loan size.
3. Age and gender of the borrower/co-borrower, health status.
4. Type of collateral and its technical characteristics - material of walls and ceilings, wear and tear of structures. The status of the object is whether the house is completed and put into operation. If the house has not yet been put into operation, only life and health insurance will be required, and if the house has already been commissioned or you are purchasing a secondary home, lenders will require insurance of the object itself - an apartment, house or other real estate.
5. The number and nature of previous transactions on the property (if title insurance is required).

The average tariff on the market, depending on the coverage and the selected creditor bank, is 0.6–1%. For an accurate calculation, submit an insurance application.

Important! The insurance tariff for comprehensive mortgage insurance is formed from the sum of tariffs for each type of insurance included in the program.

Mortgage insurance policy: when is it needed?

Insurance for mortgage lending– one of the conditions for receiving a loan from the bank. The presence of a policy guarantees the financial institution the return of funds, regardless of the circumstances that arise. You can insure both the property itself and the life and health of the borrower (in the event of his premature death, disability or illness of the insured, the bank will receive compensation under the insurance contract in one amount or another).

Mortgage home insurance does not cover the entire cost of the purchased property, but only the part that the buyer borrows from the bank. If the amount is partially paid with accumulated money (for example, 30% of the cost of housing), the policy is issued for the remainder of the debt (70%).

Why is it necessary to insure the life of the borrower when applying for a mortgage?

Mortgage life insurance is not required in all cases. Each bank sets its own terms and conditions for providing a mortgage. Typically, a policy is required when purchasing housing under construction.

Since the mortgage is issued for a period of up to 10–15 years, there is a high risk that the borrower may become ill, injured, and lose his ability to work. Consequently, it will not be able to repay the debt in full. To protect the property interests of both the individual and the bank, mortgage life and health insurance is taken out. In the event of illness, the insurance company compensates for part of the mortgage payment, proportional to the period of sick leave; in the event of complete disability or death, the entire balance of the mortgage.

Mortgage risk insurance

Ingosstrakh provides mortgage insurance in three main areas:

• Property insurance (collateral). It is intended to protect mortgage real estate, while an insured event means damage or complete destruction of an object.
  • Damage includes breakage of windows, doors, walls and other structural elements.
  • The list of insurance coverage includes the following events:
    • fire;
    • illegal behavior of third parties;
    • harm caused by natural disasters;
    • hidden structural damage;
    • flooding;
    • explosion of gas or places of its storage, transportation, used to solve domestic and industrial needs.
  • The contract may, among other things, include insurance interior decoration And engineering equipment or minimal repairs.
• Title Insurance, which implies the protection of the interests of the lender and borrower in the event of loss of ownership of real estate due to intentional, unlawful or dishonest actions, events during the transaction or before its conclusion. That is, in case the transaction is declared invalid for one reason or another.
• Borrower's life and health insurance, which includes the execution of an agreement in the event of death, illness or disability of the borrower/co-borrower. Is an additional security for registration loan agreement on long term and is issued, as a rule, at the stage of unfinished real estate construction.

Mortgage risk insurance is a mandatory condition for issuing a targeted loan and is a guarantee for the bank and the borrower in the event of unforeseen circumstances. On the Ingosstrakh website you can purchase a ready-made program or, when applying for a policy, select settings that meet the bank’s requirements.

Actions in case of an insured event

What to do if an insured event occurs?

Upon the occurrence of an insured event, the Policyholder is obliged to take the following actions:

1. Immediately report the incident to the competent authorities.
2. Immediately, no later than 3 working days (in case of an insured event under personal insurance - no later than 31 working days) after the occurrence/detection of the insured event, notify the Insurer.
3. Notify the Insurer in writing of all information and submit documents to the competent authorities.
4. Keep the damaged object unchanged until it is inspected by company representatives.

How many times should I pay for my mortgage insurance policy?

For one-year policies The premium (insurance cost) is paid at a time when concluding the contract, for multi-year policies- annual contributions over the same period of time.

Pay your fee on time!

If the initial insurance premium is not paid, the home insurance contract for a mortgage is considered not to have entered into force, and the Insurer is completely exempt from paying insurance compensation in the event of an insured event.

If the next (annual) insurance premium is not paid, the client is sent a notice of termination of the contract, and it is terminated. In addition, a copy of this notice is sent to the bank, which has the right to revise the terms of the loan agreement (increase the interest rate) due to the borrower’s failure to fulfill its obligations to service the loan.

Apartment insurance

Apartment insurance

When the renovation is completed and you are starting life in a new apartment or house, it's time to insure the finishing in it.

Home/cottage insurance

Home/cottage insurance

If you have a mortgage insurance policy, you will receive a policy discount for country house.

Civil liability insurance

If you need to repair or remodel new apartment, it's time to think about responsibility to your neighbors.

1. What is a mortgage?

   A mortgage is a pledge of real estate (apartment, country house, townhouse, etc.). It remains the property of the mortgage borrower, he has the right to live in it, even rent it out. But if the borrower fails to fulfill his obligation (repay the debt), the lender has the right to return the issued credit/loan through the sale of this residential property.

2. What is mortgage insurance?

   This is an insurance product (one or more), which is necessary to additionally ensure the bank’s repayment of the issued loan. For the borrower, real estate insurance for a mortgage provides a guarantee that the relationship with the bank regarding the loan will be resolved in the event of force majeure situations. Mortgage insurance includes, first of all, home insurance against the risks of physical loss or damage, life and disability insurance for the borrower and co-borrowers, as well as insurance for the risk of loss of ownership of real estate (title insurance). The bank may impose a condition on insurance of two or three types within the framework of one policy or only one type: property - mandatory for a transaction on the secondary market by virtue of the Federal Law “On Mortgage”; life - mandatory when purchasing an apartment during the construction phase.

3. What is title insurance?

   Insurance of the risk of loss by a bona fide purchaser of an insured property due to deprivation of ownership rights for reasons beyond the control of the insured, on the basis of a court decision that has entered into legal force.
   Loss of property rights may occur if the transaction was concluded with violations or the buyer encountered fraud. More often, danger awaits those who buy secondary housing: for example, the seller can sell an apartment without the consent of relatives who have the right to a share in the apartment. After a while, this relative may go to court. The court, based on the documents available to the applicant, has the right to order the return of all housing or a certain area to him.
   If you have a title insurance policy, in the event of such a judgment, the insurance company will pay the bank the remaining debt on the mortgage.

4. What is the validity period of the mortgage insurance contract?

   In practice, a mortgage insurance agreement is concluded for one year or for the entire term of the loan agreement with annual renewal. The duration of mortgage insurance is determined by the requirements of the lender. As a rule, it is equal to the term of the loan agreement.

5. Until when is it mandatory to have current home insurance for a mortgage?

   Until the bank loan is fully repaid.

6. Is it possible to defer the payment of the insurance premium / next installment?

   When concluding an initial policy and when receiving a loan - no, having a paid policy is prerequisite issuing a loan. When purchasing an annual policy for the next (not the first) year of lending, this issue must be discussed with the bank, and deferment is allowed only with written agreement with it.

7. What happens if an insured event occurs during the period of deferment of payment of the insurance premium?

   The Insurer has the right to send the Policyholder a request for early payment of the deferred amount of the insurance premium.
   If the deferred premium is not paid within 10 calendar days from the date of sending the request, the contract is considered not to have entered into force.

8. What happens if, on the date of the insured event, the insurance premium under the contract has not been paid in full, but there is no delay in paying contributions?

   At the written request of the Insurer, the Policyholder is obliged to pay the insurance premium within 10 calendar days up to the amount specified in the contract for the entire insurance period.
   This document may also provide that in case of partial payment of the insurance premium, the Insurer will deduct the amount of overdue premiums from the amount of insurance compensation/payment.

9. Is it necessary to come to the company’s office to issue a home insurance policy for a mortgage?

   Options are possible: for initial transactions with a bank, the insurance contract can be agreed upon by you and an employee of the insurer remotely via electronic means of communication, either with the assistance of employees of the bank issuing the loan, or with the help of a person representing the interests of the client (realtor). In this case, the original policies signed by the Insurer will be delivered by courier for the transaction to the bank for signing by clients. For certain parameters of the insurance object and for individual credit institutions, the policy can be issued through the company’s official website in the form electronic document. In other cases, the presence of the Policyholder in the office is necessary.

10. What should I do if I lost my mortgage insurance policy while it was in effect?

    You must contact the Ingosstrakh office, where a duplicate will be issued based on your written application. You must first call the insurance company and agree on receipt of this document.

11. Is it possible to change the terms of the contract?

    Yes, by agreement of the parties. The parties are required to notify the beneficiary - the bank - of any changes to the insurance contract.

12. Is it possible to change the beneficiary during the term of the contract?

    According to the terms of the loan agreement, the bank that is the holder of the loan or mortgage must act as a beneficiary for all types of insurance. If the loan (mortgage) is purchased by another financial institution, the beneficiary of the policy changes automatically, no additional notices or agreements between the parties are required. If the lending bank changes (during refinancing), then you need to contact the insurance company to renew the insurance contract.

13. Where can I get confirmation of payment for the bank?

    It is necessary to write a request to Ingosstrakh for the issuance of such documents, making sure to indicate the contract number and payment date.

14. Is it possible to sign an additional agreement to the contract at any Ingosstrakh office?

    Usually this can only be done in one of the central offices. Before visiting the office, be sure to check whether they service mortgage insurance policies.

15. How and where can I pay my invoice?

    Online on our website, in any bank convenient for you, through payment systems Western Union, Cyber ​​Money (Russian Post), at Ingosstrakh ticket offices located in central offices companies.

16. If I made an early partial repayment, I can recalculate the cost within grace period or in the middle of the year?

    It is possible to take into account early repayment only on the date of extension or next installment. Early repayments during the year will be taken into account and recalculated for the next insurance year. The next unpaid installments are subject to recalculation.

Refund limit

Established in the insurance contract size limit payments of insurance compensation for the entire period of insurance, after which the insurance contract is terminated.

Insurance premium

An insurance fee that must be paid by the policyholder or his representative.

Insurance risk

The expected event, in the event of which an insurance contract is concluded.

Insured event

An event that has occurred from among those provided for in the insurance contract and entailed the insurer’s obligation to pay insurance compensation.

Franchise

The part of the damage determined by the contract that is not subject to compensation by the insurer, established as a percentage of the insured amount or in a fixed monetary value.

Insurer

Insurance organization created in accordance with the law Russian Federation to carry out insurance activities and has received a license to carry out the relevant type of insurance activities in the manner prescribed by law.

Insurance contract

An insurance contract is an agreement between the policyholder and the insurer, according to which the insurer, for a fee stipulated by the contract ( insurance premium) upon the occurrence of an event (insured event) provided for in the contract, undertakes to compensate the person in whose favor the insurance contract is concluded, within the limits of the insurance amount specified in the contract, for the damage caused as a result of this event in the amount (limitation) and in the manner determined by the rules and/or the insurance contract. An insurance contract is a combination of an insurance policy and the text of the insurance rules on the basis of which it was concluded, as well as annexes to the insurance policy (if any).

Insurance rules

Insurance conditions that define the rights and obligations of the parties under the insurance contract, the object of insurance, a list of insured events and exceptions under which the insurer is released from liability. The text of the insurance rules is an integral part of the insurance contract.

Policyholder

A legal or legally capable individual who enters into an insurance contract in its own favor or in favor of a third party (beneficiary) and pays insurance premiums under such a contract. The conclusion of an insurance contract in favor of the insured is possible only if the insured has a legal or other legal act or a contract of interest in preserving the insured property. When concluding an insurance contract in favor of the beneficiary, the policyholder may not have a property interest.

Insurance territory

The territory defined in the insurance contract (country, region, route, etc.), within which an insured event occurring during the validity period of the insurance contract entails the insurer’s obligations to pay insurance compensation. For property and civil liability, the insurance territory is the address of the location of the property; for civil liability insurance for the actions of animals, the insurance territory is the territory of the Russian Federation.

Incomplete proportional insurance

The condition of incomplete proportional insurance means that the insured amount established in the contract is lower than the insured value of the property and the payment of insurance compensation is made in the same proportion to the amount of damage in which the insured amount was related to the insured value.

Under-insurance

The condition of incomplete insurance means that the insured amount established in the contract is lower than the insured value of the property. In this case, payment of insurance compensation can be made both taking into account the ratio of the sum insured to the insured value (incomplete proportional insurance) and without taking into account this ratio (incomplete disproportionate insurance).

Full insurance

The condition of full insurance means that the insured amount established in the contract is equal to the insured value of the property

Incomplete disproportionate

The condition of incomplete disproportionate insurance means that the insured amount established in the contract is lower than the insured value of the property and the payment of insurance compensation is made without taking into account the proportion in which the insured amount was related to the insured value.

A gradual decrease in the original value of property during its use.

Reimbursement system

The compensation system refers to the procedure for accounting for wear and tear on replaced materials/parts in case of partial damage to property: the “New for Old” compensation system assumes that wear and tear is not charged on replaced materials/parts in the event of partial damage (the payment is equal to the cost of new parts), the “Old” compensation system for old" assumes that replacement materials/parts in case of partial damage are subject to depreciation during the operation of the damaged property (the payment is equal to the cost of new parts minus depreciation over the period of operation)

Insurance value

The true, actual value of property for insurance purposes. Various methods are used to determine the insurance value economic assessment, as a rule, with insurance countryside real estate, finishing and engineering equipment insurance cost equals replacement cost(including wear and tear), and when insuring movable property, structural elements of apartments/townhouses - to the market level (minus wear and tear).

Currently, mortgage lending programs are in great demand due to government measures to support citizens. With the help of mortgage lending and additional government programs many Russian citizens were able to provide themselves with new housing. But when applying for a mortgage, everyone is faced with the need for insurance.

It is important to know that there are several types of insurance that banks offer when applying for a mortgage:

• life and health insurance of the borrower;
• insurance against risks of complete and structural destruction of housing;
• property insurance of housing;
• comprehensive insurance.

Of all these types, only one is mandatory. Russian legislation provides for the obligation of borrowers to insure property that is registered as collateral for the fulfillment of their obligation to the bank. Accordingly, the purchased property must be insured for the amount of debt against its complete or partial destruction.

If desired, the policyholder can choose full cost housing. This is the right of every person. But the bank is only interested in ensuring that, in the event of housing destruction, it can get its money back. cash with the interest stipulated by the contract.

All other types can be offered by bank employees, but they cannot be. Otherwise, this will be considered a violation of rights, and the signed agreement will be considered invalid.

Comprehensive insurance

• collateral property;
• the health of the borrower, including his ability to work;
• title right of ownership.

Such insurance has a number of advantages over single types of insurance, since it includes protection against all major types of risk. Moreover, it is significantly cheaper than each insurance service separately.

Features of the program

This program has a number of features. First of all, they are related to the characteristics of the loan itself. A mortgage is issued for a long-term period, and we must remember that various situations can happen. Therefore, all complex programs are characterized by the following features:

• the program includes compulsory insurance purchased real estate;
• the amount of the insurance policy does not exceed 1.5 percent of the amount of the entire mortgage loan;
• the complex includes health insurance for the borrower, including his ability to work, and also provides for insurance cases when a person loses his job through no fault of his own;
• protection title right for purchased housing;
• insurance does not pay for those risks when the borrower is found guilty of the situation that occurred.

At the same time, insurance companies together with the bank offer interesting advantages for borrowers:

1. Additional reduction in the interest rate on the loan.
2. More attractive bank conditions when providing a loan, additional privileges, nice bonuses.
3. Faster decision-making on the loan under consideration.
4. Significantly smaller down payment.
5. Mandatory fulfillment of the insurer's obligations to reimburse funds in the event of an insured event.
6. The borrower's guarantee and confidence in the future, as well as confidence in the assistance of the insurer in force majeure circumstances.

In addition to the benefits for the borrower himself, very good advantages are provided to the bank itself. That is why every bank employee is interested in persuading a doubting client in favor of concluding an additional insurance contract. The bank has the following benefits:

1. The insurance company provides him with a certain percentage of the transaction amount.
2. The loan officer receives additional bonuses To wages from each insured client.
3. The bank itself receives guarantees of receiving a return of funds issued for a mortgage loan.
4. The risks of non-payment of debt are minimized as much as possible through comprehensive insurance.
5. Also reducing the risk of losing title to property.

Comprehensive insurance is one of the most profitable types of insurance, which also includes a mandatory type. But borrowers who want to save their money as much as possible should definitely analyze the difference between the cost of insuring only real estate and the cost of a comprehensive package.

If the difference is not great given the privileges provided, then you can choose a comprehensive package. But if the difference is significant, then a comprehensive package is always an option.

It is important to know that the law allows banks to change the essential terms of lending, thereby encouraging clients to enter into additional insurance contracts.

Conclusion of an agreement

Legislative acts establish that the bank is obliged to provide a choice between insurers who provide the necessary insurance services. Each bank has a list of its companies that are accredited by it. From this list, the borrower must choose the most profitable insurer for himself.

With the most large banks There are such well-known insurers as: VSK, Ingosstrakh and others.

After the choice of insurer is made, a list of insurance options included in the comprehensive package is determined. In addition, the insured amount is also determined. If the client plans to repay the loan ahead of schedule, then it is more convenient for him to take out insurance not for the entire period, but only for 1 year. Because the amount of insurance compensation will decrease depending on the amount of the remaining debt and the remaining time to repay the loan.

To sign the contract you will need the following documents:

• borrower's personal passport;
• personal passport of the guarantor, if available;
• application requesting the provision of insurance services;
• title documents for the acquired property;
• floor plan;
• cadastral passport;
• loan agreement with the bank;
• an extract confirming the absence of other citizens at this address;
• a document confirming the estimated value of the acquired property;
• extract from the Unified State Register of Registers;
• acceptance certificate and the sales contract itself;
• copy of the seller's passport for individuals and copies of registration and charter documents for legal entities.

In certain situations, the insurer has the right to request other documents.

The average cost of such lending in different banks varies from 0.6% to 1.5% of total cost loan Moreover, if the borrower has repaid a significant part of the debt at once, he must come to the insurance company and write an application for recalculation of the insurance premium. In this case, the insurer will be obliged to return the overpaid amount to the policyholder.

To write such an application, the following documents will be required:

• personal passport of the policyholder;
• new monthly payment repayment schedule;
• a certificate from the bank about the balance of debt as of a certain date.

Based on these documents, the insurance company will recalculate. This procedure must be carried out every time an overpayment is made. large sum funds.

Whether to insure a comprehensive package or not is a matter for every citizen taking out a mortgage loan. It is also important to compare the privileges that the bank provides. As a rule, for clients who issue additional insurance, the annual interest amount is reduced by 1-2%, and this can be a significant amount over several years. Therefore, before refusing insurance, it is important to count everything several times and make the right choice.

In addition, do not forget that a mortgage is issued for a long period, during which a lot of things can happen, the financial condition of the borrower and his health can change.

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Banks, when providing a loan to purchase real estate, not only issue a mortgage on it, but also require mortgage insurance. Purchasing a property insurance policy is a requirement of any mortgage agreement. What about other types of insurance?

General understanding of what mortgage insurance is

Mortgage insurance is a set of types of insurance that are designed to protect the financial interests of each participant in residential mortgage lending.

The need to conclude such agreements is due to the need:

• bank - in obtaining loan repayment guarantees, which allows reducing the interest rate and increasing the loan term relative to consumer loans;
• client - in receipt financial security the possibility of fulfilling one’s obligations in the event of death, disability, reduction in income, and other things.

Main purpose mortgage insurance– redistribute risks between insurers, borrowers and lenders in order to increase the reliability of the mortgage insurance system.

Types of mortgage insurance:

• insurance of property under a mortgage, which according to the agreement was pledged, against the risks of loss or damage;
• personal, which is life and disability insurance of the client (borrower or co-borrower);
• title is insurance against loss of title to collateral as a result of termination of ownership.

As an additional option, insurers offer to insure the civil liability of the premises owner against:

• by third parties during the operation of the property (for example, from cases of flooding of a neighbor’s apartment);
• creditor for failure to fulfill accepted financial obligations(if there is a delay, if it is impossible to make payments in the future).

Features of this type of insurance

Mortgage risk insurance differs in that the beneficiary under the contract is the lender (bank). In the event of an insured event, the insurer will make an insurance payment in his favor. Its size cannot exceed both the amount of the outstanding debt and the amount of damage incurred.

There is a scheme for paying the insured amount in a lump sum - immediately - upon concluding an agreement for the entire loan term. A more common scheme is the annual payment of the insurance amount.

Do I need to insure my apartment every year if I have a mortgage? Yes. This is specified in the loan agreement.

Legality of requirements for concluding insurance contracts

Real estate insurance for a mortgage: mandatory or not – debates have been going on for a long time, but there is a law and there is judicial practice.

According to Federal Law No. 102-FZ “On Mortgages” mortgage borrowers are required to insure the collateral. The document does not say anything about other types of insurance.

Personal insurance for mortgage Art. 935 of the Civil Code of the Russian Federation is defined as voluntary. However, banks strongly recommend that their clients take out such insurance. It is optional, but its absence will result in an increase in the loan rate by at least 1%.

A similar situation has developed with regard to title insurance. The client has the right to refuse, but the loan, as riskier from the lender’s point of view, will be offered to him on other, less favorable conditions, than to those borrowers who agreed to fulfill the bank’s requirements.

Judicial practice in relation to such disputes indicates that in most cases the requirement to conclude a life and health insurance contract is recognized as an abuse of freedom of contract, since they refused to issue a loan without obtaining insurance.

According to the Directives of the Central Bank of the Russian Federation dated November 20, 2015 No. 3854-U, the borrower has the right to refuse the loan imposed on him insurance product within 5 days from the date of signing the relevant documents. The amount paid by him must be returned in full.

However, the Central Bank of the Russian Federation explained that if the borrower refuses this service, the lender has the right to change the conditions standard contract and increase the interest rate.

This clause is already included in most mortgage agreements. Lenders also widely use their right to terminate the mortgage agreement unilaterally due to the client’s failure to comply with its terms. This provision is also stated in the loan documentation. The bank sends a notice to the client requiring him to either take out insurance, or he will terminate the contract. The latter means that the borrower is obliged to repay the entire loan amount or face legal proceedings.

Citizens' appeals (usually during legal proceedings) to the fact that the requirement for insurance violates their rights are not accepted: the agreement was concluded under certain circumstances, about which the client was warned in advance.

Signing the documents means agreement with the fulfillment of the requirements established by them.

Typical insurance cases

Insurance of a real estate property typically assumes as an insured event:

• fire, including one that occurred outside the insured property;
• household gas explosion;
• natural disaster;
• flooding that occurred as a result of an accident in the water supply, sewerage or heating system, even if the water came from neighboring premises;
• illegal actions of third parties (hooliganism, robbery, vandalism);
• falling of aircraft (parts thereof) onto real estate;
• identification of structural defects in the structure, which were unknown to the policyholder at the time of concluding the contract.

You need to be prepared for the fact that the minimum package offered by insurers provides for payments only when the insured property has suffered significant damage.

For example, if your neighbors' wallpaper was damaged as a result of a flood, there will be no payment, but if someone breaks a window, you can count on compensation for its cost. The entire loan balance will be paid only when the object is completely destroyed. In the case of a private house, if the foundation remains, then only part of the debt will be repaid, because, from the insurer’s point of view, the rest of the building can still be used to build new housing.

To get more guarantees and more compensation, you should take out more extended insurance, but it will cost more.

The next type of mortgage insurance is life and health insurance of the borrower. Insured events under such a contract are:

• death of the insured due to an accident or illness that occurred during the period of validity of the contract;
• loss of ability to work as a result of illness or accident with the assignment of 1 or 2 disability groups.

What is title insurance for a mortgage is easier to understand from the list of insured events under the following contracts:

• recognition of the sale and purchase as invalid (based on clause 2 of Chapter 9 of the Civil Code of the Russian Federation);
• demand from the buyer of housing (in whole or in part) by persons who retain ownership of the property.

This type of insurance is designed to protect the rights of a bona fide purchaser. Confirmation of the occurrence of an insured event will be a court decision. Payments under such agreements should compensate the borrower’s financial costs and guarantee the lender’s repayment of the loan.

In such cases, the insurance company has the right to provide full legal support, including representation of the client’s interests in court.

The problem of receiving insurance payments

The insurer has the right to refuse to pay insurance compensation in a number of cases. All of them are specified in the insurance contract.

Personal insurance for mortgage lending involves, as an insured event, the identification of the borrower with the 2nd or 1st disability group or his death. In this case, the payment is made in full as a one-time payment. In the first case, the property remains the property of the borrower, in the second it will be included in the inheritance estate and the heirs will receive it without any encumbrance (without collateral or the obligation to repay the loan debt). But for example, compensation under a life insurance contract will be denied if death occurred as a result of suicide or a car accident in which the policyholder was at fault. They will not pay compensation in cases where the client initially knew about health problems, confirmation of which the insurer will find in his medical records, but did not inform about this when concluding the contract.

There will also be problems with compensation for persons who have suffered from professional risks, as well as for those in whose blood at the time of the insured event alcohol or drugs are found that were not prescribed by a doctor. According to the law, the insurer in such a situation is not obliged to repay the debt.

If life and health insurance was taken out in relation to both spouses-co-borrowers, then in the event of the death of one of them, the debt to the bank will be repaid only by half, i.e. by 50% of the loan balance. If the insurance was made taking into account certain proportions, then the payment will be made taking into account how it was stated in the contract. For example, in the event of the death of one of the spouses, compensation may be 70% of the balance, while in the event of the death of the other - 30%.

In cases where there is no firm certainty that the insurance company’s refusal is correct, it is worth contacting a lawyer specializing in this area.

Already at the first consultation, having studied all the documentation, the specialist will be able to confirm or refute the legality of the insurer’s actions and suggest the advisability of protecting their interests in court.

How to save on mortgage insurance

The insurance program offered by the lender's employees is, as a rule, a product that is unprofitable for borrowers. Most banks act as intermediaries between the true policyholder, the organization with which the contract is actually concluded, and which will subsequently, if necessary, make insurance payments, and the client. Accordingly, the lender most likely receives a discount from the “supplier” and at the same time makes an allowance to cover its own costs.

As a result, an insurance contract concluded in a bank office may turn out to be 10-20% more expensive than an agreement drawn up on the same terms either with the insurer itself or with its other official partner.

If you decide to purchase insurance directly from the insurer, check with the lender for a list of accredited companies. Despite the fact that any restrictions when choosing an insurance company are unacceptable by law, they can be established in spite of them. Therefore, it is still wiser to check with the bank for a list of accredited insurers.

Considering that the insured amount is calculated based on the loan balance plus interest that will be accrued over the next year, savings are possible due to early repayment loan

The faster the mortgage debt is repaid, the less percent the borrower pays, the less the insured amount will be.

You should also consider the loan repayment date. Ideally, you need to guess the deadline full repayment loan by the time the next insurance contract expires. If this does not work out, then you can, by obtaining a corresponding certificate from the creditor about the absence of debt, contact the insurer with a request to return part of the insured amount according to the actual time of existence of the loan obligation (debt to the bank).

How to properly insure yourself with a mortgage so as not to overpay. When determining the sum insured, insurers take into account:

• client's age. The policy will be cheaper for people who are 25-35 years old;
• the price of the property - the more expensive it is, the more the insurer needs to pay;
• at personal insurance may be asked to undergo a medical examination, based on the results of which the cost of the policy will be determined. The fewer health problems a person has, the fewer bad habits he has, the greater the discount he will be given;
• the larger the loan amount, the greater insurance amount will be assigned for payment.

Resume

Mortgage insurance: required or not? Insurance contract for collateral real estate necessary. The rest - formally no; in fact, the bank indirectly (through deterioration of lending conditions or even refusal to conclude a mortgage agreement) forces clients to agree to this requirement.

From a financial point of view, sometimes it is a little more profitable to agree to an increase in the loan rate, but refuse additional insurance.

Interest is accrued regularly on the debt balance, which decreases as payments are received to repay the loan, i.e. monthly or even more often. When determining the insured amount, the amount fixed at the beginning of the year is taken into account.

A reasonable solution to this issue is to comply with the lender’s request, but enter into a mortgage insurance contract directly with the insurance company.

The benefit of the borrower with mortgage insurance is that if an insured event occurs, although the bank will receive the payment, the citizen will be released (partially or completely) from the obligation to pay the mortgage.

In difficult times, which are designated in insurance as insured events (loss of property, disability, etc.), this can come in very handy.

Taking into account the above, we can say that a mortgage is a risky project for the borrower and the insurer. The bank, if it has a full package of insurance and collateral, risks less.