Documents required to obtain insurance for a property

Questions and answers regarding insurance of apartments, houses and property

The most difficult stage is the process of choosing an insurance company. There are several tens of millions of sites on the Internet with advice on choosing an insurer. We won't repeat ourselves. Our company pays! And let’s add the following: always carefully study the rules of the company you have chosen before insuring. It is possible that what needs to be protected is not subject to insurance, or the interpretation of the risks is vague (unclear), or in general the alleged negative event is not an insured event under the company’s terms and conditions. Ask as many questions as possible to the insurer's representatives. Find out if they are as interested in your well-being as we are.

We determine the objects of insurance and insurance risks. If you have doubts or difficulties, we get advice from an agent.
We receive a preliminary calculation of the cost of the insurance policy
We call an agent to the property for photos and clarifications
We compile a list of insured property or engage an agent
We check and sign the insurance contract

Types of insurance

Apartment mortgage insurance can be divided into 2 types:

insurance of purchased housing;
life and health insurance.

Typically, banks require first of all to insure the collateral property, namely the apartment that is purchased with a mortgage. The structure of the building (walls and ceilings) and the decoration of the premises are separately insured. To save money, some borrowers use a trick and insure only the structure of the building, which allows them to reduce insurance payments. By concluding a mortgage loan insurance agreement, the client can expect to receive payment in the following insured events:

fire;
earthquake;
storms and showers;
floods;
tornado;
falling of manned aircraft;
collision with a vehicle;
any illegal actions of third parties.

If the borrower is over 40-45 years old, when applying for a long-term mortgage, some banks require additional life and health insurance for the person being borrowed. This allows the bank to protect itself in the event of not only the death of the borrower, but also his disability, which may lead to the impossibility of repaying the mortgage loan.

Most insurance companies today offer several mortgage insurance programs for the client to choose from. The most popular insurance product remains comprehensive insurance, which guarantees protection against all the force majeure events listed above. At the same time, the selected program must be agreed upon with the bank in order to obtain approval for signing the insurance contract.

What documents are needed to insure an apartment with a mortgage?

On the bank's official website you can find a list of companies where you can insure your mortgage from Sberbank. But this list is not final, since you can also use the services of a third-party insurer, and documents from the insurance company must be attached to the policy. This is required so that experts can assess the activities of this company and decide whether it can participate in the mortgage.

The main goal of insurance is to make mortgages more accessible to a larger number of solvent citizens. Having a guarantee that the loan will be repaid, banks reduce the down payment and interest rate, soften the requirements and conditions for their clients.

What documents are needed to insure an apartment?

But Sberbank offers only one type of compulsory insurance - for real estate; yet other types are voluntary. But you may be asked to purchase insurance for loss of title to your home. The average rate in this bank for this 2020 is 0.225% per year of the entire amount of your loan obligations. But you can choose one of 19 other insurance organizations working together with Sberbank.

We recommend reading: Registration of a garage as a property

Concluding an insurance contract to protect real estate is only possible if you provide the relevant documents to the relevant institution. After agreeing with the client on all the nuances and selecting suitable programs, insurance company employees will draw up a list of necessary documents for insurance.

What documents are needed to insure an apartment?

A document that confirms your right to own an apartment or house. After receiving such a document, it must be officially registered, and a certificate is issued based on the results. This must also be provided.
Certificate from the Unified State Register.
Apartment registration certificate.
Report from the assessment team on the condition of the apartment.
Personal account details for paying utility bills.

When purchasing an apartment with a mortgage, any bank or financial organization makes a basic requirement - to obtain an insurance policy for the property. Having an insurance policy guarantees the security of conditions and regular mortgage payments for the bank. You can also obtain life insurance for the borrower, but this procedure is voluntary. Since an apartment purchased on credit immediately becomes the object of collateral, Sberbank or another bank requires an insurance policy when applying for a mortgage.

What can be the object of property insurance?

The conditions and objects of insurance may vary among different insurance companies.

But the basic ones for everyone are a house, a cottage, an apartment, a building (garage, outbuildings, warehouse), furniture and interior items, decoration, as well as the civil liability of those who live in the apartment. But there are exceptions to this rule, and some of the listed objects cannot be insured for a certain reason. For example, these can be emergency and dilapidated buildings (structures), documents (plans, manuscripts, accounting documents, drawings), technical storage media (disks, cassettes), alcoholic beverages and tobacco products, food, explosives.

What documents are needed to insure an apartment?

Many people who are planning to take out insurance are interested in what documents are needed for insurance. Collecting documents for insurance is a rather difficult procedure. Depending on the type of insured event, documents are collected by the insurance company. In addition, to obtain insurance you need one type of documents, but to receive payment in the event of an insured event – completely different ones.

Did you know that according to statistics, 80% of fires in our country occur in residential premises. The deterioration of internal communications in Russian homes today reaches 90%. Almost every one of us has been the perpetrator or victim of a flood at least once in our lives. Theft of property from country houses and country houses is one of the most common reasons why citizens contact the police.

How to insure your apartment

Damage caused as a result of an insured event is calculated taking into account damage to all structural elements, finishing elements, engineering equipment, elements of internal communications related to the insured residential premises.

Why do you need apartment insurance?

a statement describing the insured event and damage to the residential premises;
a document confirming the fact of payment of the insurance premium;
document proving the identity, citizenship and place of residence of the policyholder, for example, a passport;
title documents for residential premises;
residential premises insurance certificate or policy;
a document from a competent organization establishing the date and cause of the event that resulted in damage (destruction) of the residential premises;
bank details for receiving insurance compensation.

This list is quite modest compared to what you can insure a house against in principle. Therefore, in order not to miss important details, many insurance companies offer comprehensive insurance. In this case, the maximum possible number of risks to which the housing is exposed is taken into account.

We recommend reading: Compensation for Material Damage from a Defendant in a High Security Colony

What documents are needed to insure an apartment?

To insure the client, an application form must be filled out; depending on the age and amount insured, they may also ask for medical documents: a certificate from the clinic about height, weight and blood pressure, as well as a cardiogram at rest and during exercise, tests and probably a chest x-ray .

The Federal Law “On the organization of insurance business in the Russian Federation” dated December 31, 1997 determines the voluntary nature of insurance of any property interests. Neither the Constitution of the Russian Federation nor any other legislative acts force insurance. In the article we will figure out what can be insured against, how to do it, and most importantly, what you can save on.

What documents are needed to insure an apartment?

How often do you have to think about how reliable the heating and plumbing system is in your multi-storey building? And about whether the neighbor above you turned off the faucet in the bathroom, whether the elbow under the sink is leaking? Many people who are planning to take out insurance are interested in what documents are needed for insurance.

These documents are required when applying for a loan from any bank. Some banks, in addition to the list of required documents, may require additional papers from a potential borrower. It is best to prepare them in advance or not to submit an application at all to that credit institution, which may refuse you due to the lack of additional evidence.

We recommend reading: How Much Do Realtor Services Cost When Buying a House

What set of documents must be provided to the insurance company to obtain mortgage insurance?

Application for insurance. Compiled directly by the insurance company. Filling out is required for each type of service. For example, the life and health of the borrower, the collateral itself, etc. Or one, with a comprehensive design of the service.
Civil passport of the insured person. That is, you as a borrower. If the mortgagor of the mortgage is a third party, then his identification document.
Loan agreement. You receive it when concluding a transaction with the bank.
Purchase and sale agreement and certificate of registration of ownership of the mortgaged property. If these documents were submitted to the bank during the mortgage process, contact the lender's branch. They will be provided to you upon request to obtain insurance.
Real estate valuation report. With a block of object characteristics and the appraiser’s conclusions.

Firstly, some banks provide free services for the preparation of insurance contracts. That is, managers independently create the necessary package of documents. Transferred to the company. Next, you enter into agreements with the insurance company or directly with the bank.

Documents for insuring an apartment with a mortgage

the amount at which the apartment was valued;
the conditions under which the mortgage was issued (loan interest, contract term);
the conditions under which the insurance policy was issued;
the currency in which the loan amount was calculated;
the condition of the purchased housing, the degree of its disrepair.

They have this right; according to Russian legislation, insurance of this kind can only be voluntary. What is voluntary in form often turns out to be mandatory in practice. The bank, citing high risks for issuing a mortgage, may refuse to issue a loan to the borrower if there is no insurance.

Home mortgage insurance 2020

The insured amount for which the home will be insured, as well as the maximum amount of compensation. Usually equal to the amount of debt to the bank at the time of concluding the insurance contract. You can clarify this in your loan repayment schedule. Some banks, for example, VTB, Gazprombank require an increase of 10% or the interest rate. As the debt balance decreases, the insured amount will also decrease.
The object of insurance is a structure, namely walls, floors, foundations, roofs, entrance doors, stairs. Roughly speaking, only the walls of the apartment will be insured under mortgage insurance. Most do not suspect that everything else is not insured: repairs, decoration, plumbing, engineering equipment, household contents. This is the most common reason why the payment in case of an insured event with a mortgaged apartment will be less than the actual damage.
The minimum insurance period is 1 year. Be careful. Especially those planning to pay off their mortgage early. The bank offers VTB24 borrowers a policy for 3-5-20 years with a one-time payment for a long term. But if the loan is repaid ahead of schedule, termination of such an insurance contract and reimbursement of the insurance premium in proportion to the remaining period are not provided.
The insured event under the policy will usually be: natural and natural phenomena, fire, explosion, flooding, illegal actions of third parties, ingress of objects. Please pay attention to specific risks: damage resulting from structural defects, especially relevant for objects in new buildings. Usually it is included in the contract only for an additional payment.
Standard exclusions from coverage: acts of war, civil unrest, terrorism, effects of nuclear/nuclear energy, dilapidation, normal wear and tear, safety violations.

What documents are needed to insure an apartment?

Any apartments, dachas, houses are accepted for insurance. Even houses that are not privatized and rented or hired, or unfinished houses are subject to insurance. It is possible to insure dachas, houses and apartments that are in shared ownership. Any material interest associated with real estate can be insured. After all, the main task of insurance is to preserve the material interest of the policyholder in the event of any external negative events.

Next, the insurance agent himself will propose an insurance algorithm, tell you what is insured and what is not, create a list of property, help you decide on the insurance program, the value of the property, etc. In short, at this stage the client is not alone with the problem, but together with the insurance specialist.

How to properly insure a house or cottage and how much it costs

Example. When valuing suburban real estate at 500 thousand rubles. its insurance will cost no more than 5 thousand rubles. in year. At Rosgosstrakh, the cost of insuring a private home starts from 2,000 rubles.

What to insure against

At this stage , it may be determined that the cause of the event does not appear in your list of risks , then a refusal of compensation is issued. The same happens when the assessment determines the intentional motives of the owner or simply careless attitude.

By insuring your home, you can forget about problems and rely entirely on compensation . This is not entirely true. Firstly, the risk must be included in the policy, because only individual cases are insured. And secondly, if the event specified in the policy occurred through the fault of the home owner, then you should not expect any payments. For example, you forgot to turn off the iron and part of the house burned down - payment will be legally denied;
Many people believe that home insurance is a luxury that only the rich can afford . An erroneous judgment that may be true if the value of the property is several hundred million. Insurance for an ordinary house, and even more so for a country house, may not exceed the cost of the policy for the apartment;
When insuring a house, you cannot include a plot in the policy . Land can also be insured, but it must be entered as a separate item and reflect the corresponding risks;
Insuring a private home is a waste of money . In fact, this is an excellent opportunity to save your own pocket from big expenses for a small amount and at the same time preserve your property. It may not be possible to save, but getting the amount to buy a new one is quite possible.

Bearing structures;
Interior decoration;
Engineering systems;
Facade;
Furniture;
Valuables;
Associated buildings (baths, garages, sheds, etc.);
Architectural elements located on the site (fountains, sculptures, etc.);
Unfinished objects (for example, you are building a greenhouse complex);
Plot;
Liability to the owners of other houses (for example, children were playing with a ball that hit the glass of a house located behind a fence. As a result, the glass was broken, and the owners demand compensation for damage).

How much does it cost to insure a house?

Rosgosstrakh - offers inexpensive insurance programs, and in some regions there is free home delivery. The company does not offer to issue a policy yourself via the Internet, and therefore it is better to leave a request on the website, through which a specialist will contact you;
AlfaStrakhovanie – you can take out a policy in installments. There are three programs of insured risks, as well as a set of additional ones at the discretion of the client;
Ingosstrakh - for housing whose cost does not exceed 8,000,000 rubles, tariffs start at 350 rubles per year. You can select a ready-made program and send an application for consideration by a specialist;
Renaissance – payments are made within 15 days. The company offers 5 programs to choose from, 4 of which do not require you to provide title documents for your home. They will be required only upon the occurrence of an insured event;
VTB – offers to pay the payment in installments for 4 months. Payments are made within 10 days after the occurrence of the insured event. However, some programs allow you to issue a policy without first inspecting the house;
Sogaz - there are 4 insurance programs. It is possible to conclude a contract for a period of 7 days or more if you are going on vacation. The cost of the policy starts from 2000 rubles.

Mortgage apartment insurance: what a borrower needs to know

Choose an insurance organization, preferably from among the bank's partners.
Collect a package of documents:
certificates of state registration;
conclusion of the appraisal company on the value of the apartment;
extract from the house register. Specify the preliminary cost of insurance and the list of necessary documents for its registration. As a rule, you will need title documents to verify the purity of transactions with an apartment in the past:
Write an application at the office of the insurance company and submit copies of the necessary documents.
Wait for your insurance application to be approved (this usually takes several days).
Draw up an insurance contract. As a rule, it is signed the day before or on the day of signing the mortgage loan agreement.
Pay the insurance premium.

Registration procedure

There are a number of steps you need to go through to purchase title insurance.:

You need to choose an insurance company.
Collect a fairly large package of documents that the insurer will take for study before agreeing to conclude an agreement.
After receiving a positive response from the company, issue an insurance policy and pay its cost.

Let's look at each stage of the insurance registration procedure in more detail.

Choosing a company

Title insurance in Russia is provided by a very limited number of insurers . All of them insure risks when purchasing an apartment, house, non-residential premises (for example, industrial complexes), land plots, and some are even willing to insure the risk of purchasing unfinished construction projects.

But mostly companies cooperate with borrowers from partner banks or legal entities. Before drawing up an insurance contract, an examination of all documents for the purchased property is carried out.

SK name	Rate	Insurance period	Insurance risks
Rosgosstrakh	0,25-1%	up to three years	loss of ownership
RESO-guarantee	0,3-1,4%	for the loan term	loss of ownership, encumbrance
Alfa insurance	from 0.3%	up to 10 years	loss of ownership

What documents are needed?

For title insurance, you will need to fill out an application form that describes the property being purchased , as well as all information about ownership and previous transactions. Along with the application, you must submit a package of documents, most of which are related to the real estate itself.

For insurance you will need:

copies of the parties' passports;
title documents for the apartment;
extended extract from the Unified State Register of Real Estate;
BTI technical plan;
extract from the house register;
a copy of the financial and personal account;
documents confirming the seller’s legal capacity;
permission from the guardianship and trusteeship authorities for sale (if the seller has small children);
consent of the seller’s spouse to complete the transaction;
refusal of neighbors or co-owners of the pre-emptive right to purchase the alienated room/share (if a share is purchased).

If the apartment has previously been frequently bought and resold, title documents for previous transactions may be required. Additionally, the insurer has the right to request extended extracts from the house register to ensure that minors are not registered in the apartment. After all the documents have been studied, the insurance contract is signed.

This is done without notarization in simple written form. Title insurance can be purchased both before and after registering ownership of an apartment. But the policy will come into force only after the registrar's mark appears on the bill of sale .

Term

The period for which insurance is purchased usually does not exceed 3 years (the general limitation period).

What is the price?

The cost of the policy averages from 0.2% to 1.4% of the insured amount. The insurer has the right to apply increasing (from 1.1 to 5) and decreasing (from 0.9 to 0.1) coefficients to the calculated basic insurance rates, depending on various circumstances affecting the degree of insurance risk.

For example, the policy will cost more if the apartment was sold more than twice a year or by proxy. The size of the payment also depends on the insurance period - in the first year it is the highest, and then gradually decreases. The insured amount is usually tied to the market value of the property or the size of the loan.

Title insurance is an expensive service . However, you can only pay for the first three years, and not the entire loan term, as is the case with conventional property insurance.