What does the price depend on?
The issue of determining the cost of insurance is of a private nature; it may vary among clients.
IMPORTANT! The price of real estate insurance is determined by the condition of the home and the cost of the apartment. Age, gender, presence of unhealthy tendencies, specialty, state of health of the person, etc. are also taken into account.
Insurance will not be paid if the client has hidden information about serious illnesses (tuberculosis, oncology, HIV, etc.).
The death of drug addicts, mentally ill, drunk, or clients with heart disease will not be an insured event.
The insurer will refuse payment in the following situations:
- intentional harm to health;
- if the client’s death was caused by an explosion or radiation;
- if a person has become a victim of military events or rallies;
- if you suffered as a result of a crime;
- if he violated public order and suffered;
- if you drove a car while intoxicated;
- if you have been poisoned as a result of consuming alcohol, narcotic or psychotropic substances;
- if you have suffered from extreme sports.
If the client himself refuses insurance, this will reduce the likelihood of purchasing a mortgage. If the application is approved, the person undertakes the obligation to make payments on time even in the event of disability, illness, etc.
In the event of death, his debt is inherited. In order not to repay the loan, the heirs may refuse the inheritance. Inheritance rights will pass to subsequent generations. If there are no heirs, the bank has the right to put the property up for auction.
When the loan is closed, the insurance continues to apply, and the cost of the policy remains the same. Then the insurance payment is made not to the bank, but to the client.
Read about where it is cheaper to get life and home insurance for a mortgage at Sberbank.
Life insurance for a mortgage at Sberbank. Peculiarities
First of all, it is necessary to note the fact that according to the current rules of Sberbank, taking out life insurance when receiving a mortgage loan is not mandatory. Thus, the borrower's decision to purchase a life insurance policy must be voluntary.
Practice shows that many employees of the credit institution in question forget to inform potential borrowers that taking out life insurance is not mandatory. Even those managers who inform clients that taking out a life insurance policy is not a prerequisite for obtaining a mortgage loan do their best to persuade borrowers to purchase it. They explain the need to purchase the policy in question by the fact that if you have it, you will be able to get a mortgage loan at a lower interest rate.
If you nevertheless decide to purchase the described policy, then you should know that there are no restrictions in choosing an insurer. Thus, you are not obliged to purchase a policy from a subsidiary of Sberbank, despite the fact that bank employees will try in every possible way to convince you to give preference to this particular insurance organization.
The credit institution in question, when considering applications for a mortgage loan, is more loyal to clients who have a life insurance policy. This is due to the fact that such a policy makes it possible to insure against such risks as:
- Death of the borrower.
- Temporary loss of ability to work of the borrower.
- Obtaining disability by the borrower.
- Temporary loss by the borrower of the main source of income.
Having insurance against the risks listed above can significantly increase the chances that the borrower will pay all the required mortgage loan installments on time.
If the borrower who has taken out the policy in question permanently or temporarily loses the ability to pay mortgage loan installments due to the occurrence of an insured event, then all necessary payments will be made by the insurance organization instead.
It is important to remember that when applying for such a policy, you must indicate a credit institution as the beneficiary. In this case, depending on what kind of insured event occurs, the insurance organization will transfer the following payments to the bank:
- Monthly payments in full, provided that the borrower is temporarily disabled.
- Half of the monthly payments if the borrower is partially disabled. If the borrower becomes disabled, the insurance company pays the mortgage loan premiums in full.
- If the borrower passes away, the insurance company will be required to pay off the mortgage loan in full. This eliminates the possibility that close borrowers will lose real estate acquired with a mortgage loan.
When taking out a life insurance policy, all the risks against which the client is insured are described in detail. It is important to mention the fact that the more risks specified in the insurance, the higher the cost of the policy will be. That is why, before you take out the policy in question, you need to carefully consider what risks you need to insure against in order to eliminate the possibility of overpayments.
What percentage of the mortgage amount is this?
The insurance amount usually ranges from 0.18-0.32% to 1-1.5% of the amount of debt.
IMPORTANT! Sberbank offers registration of an insurance document in . A person will have to pay 1% of the loan amount.
Sberbank offers various types of mortgage loans. Basic rates apply only to human life insurance. Refusal will increase the rate by 1%.
A mortgage loan always comes with insurance. We suggest you read materials about whether it is possible to return insurance if you repay a loan at Sberbank early, and whether it is necessary to insure an apartment with a mortgage every year. Also on our website you will find options for obtaining mortgage insurance from Sberbank for each year and lists of insurance companies accredited by Sberbank.
Life and health insurance
To make purchasing a policy financially profitable, you need to look for a company willing to insure you for less than 1% of the loan cost.
For example, in Ingosstrakh the cost of policies starts from 500 rubles, but it is important to take into account the insurance amount, which should cover risks in the amount of loan payments. This is the main catch - a policy for 1 million rubles. will cost 10,000 rubles.
For insurance companies that are ready to protect the health and lives of their clients, the current state of health and place of work are important. The presence of chronic diseases and dangerous service can increase the cost of the insurance premium by up to 2.5 times.
How much does insurance usually cost?
Apartments
Sberbank provides a program - “Online Mortgage Insurance”.
The price of insurance is determined by the amount of debt based on a 1% tariff. You can register it through Sberbank Life Insurance.
The policy will be sent by email, and a copy of it will be sent to the bank.
Insured:
- parts of the structure (walls, ceilings, partitions, windows, entrance doors, roof, foundation);
- property in general from fire, lightning strike, gas explosion, car collision, natural disasters, unlawful acts of strangers, falling trees, poles, billboards.
Find out what kind of real estate insurance there is for a Sberbank mortgage here.
What types of insurance arise during mortgage lending?
When concluding a mortgage agreement, three types of insurance are possible:
- Property.
- Title.
- Personal.
The first type is mandatory. This is explained by the fact that with a mortgage from Sberbank, it becomes necessary to register the purchased property as collateral, and the collateral must be insured by law. The second type is rarely used. The bank usually insists on such an agreement if it finds in the documents any risks of loss of ownership of the property.
As for personal insurance, in this case it is life and health insurance. It's not necessary, but the benefits can be huge. For example, if the borrower becomes unable to work, it may be very difficult for him to continue making mortgage payments. That’s when insurance comes to the rescue: if an insured event occurs, you don’t have to worry about where to get the funds to repay the loan.
What to do if an insured event occurs
The amount of insurance coverage changes taking into account the balance of mortgage obligations, the compensation will exactly correspond to the amount that the client owes the bank at the time of the insured event. It is calculated according to the bank’s data, taking into account all interest accrued to that day.
It must be reported within 30 days. This can be done by relatives or a representative of the partner bank acting as the beneficiary in any convenient way by contacting the insurance company.
We invite you to read: Alfa insurance Sberbank for VHI employees
Then you need to provide a package of documents to confirm what happened:
- For risks of death due to an accident or illness, you will need: a death certificate; documents indicating the reason for death - a report of a forensic medical examination, a pathologist's report, a post-mortem epicrisis, a death certificate from the registry office; medical examination data during life - an extract from an outpatient card or from a medical history; act on an industrial accident, protocols, certificates, acts of authorized persons and organizations (Ministry of Emergency Situations, Ministry of Internal Affairs, Prosecutor's Office) on recording the circumstances of the emergency and the results of its investigation.
- For the risk of disability as a result of illness or injury due to an accident, the following papers will be required: a medical and social examination conclusion on assigning the insured person 1 or 2 disability groups; referral for a medical and social examination, where the cause and main diagnosis are indicated; an extract from an outpatient card or medical history, which contains the results of examinations, tests, and studies; if the disability arose due to an accident, then documents from the Ministry of Internal Affairs, the Ministry of Emergency Situations, the prosecutor's office and other departments whose employees recorded the incident, and, if available, an industrial accident report.
To contact the insurance company, you will need to fill out the appropriate application using a special form and provide documents confirming the applicant’s authority and his identity. It is necessary to attach to the application a certificate of the balance of the mortgage debt to Sberbank on the date of the insured event, as well as the mortgage agreement itself.
Before paying compensation, the insurance company will check whether the situation complies with all the clauses of the insurance contract and whether it is possible to pay off the mortgage with compensation in the event of an insured event.
If something that the borrower was insured against does happen, it is necessary to immediately notify both the bank and the insurance company. After all, further communication will take place mainly between them.
After this, the borrower must do everything in his power to save the property or reduce the extent of the damage. If third-party organizations are involved for this, then contracts with them are required, as well as documents confirming expenses.
IMPORTANT! The borrower needs to ensure that the damage to the property is not intentional. A representative of the insurance company will assess the amount of damage, after which a decision on compensation will be made.
It is important for Sberbank that insurance policies are purchased from organizations that have been accredited and meet all the bank’s requirements. A list of such organizations is posted on the official website of the financial and credit organization.
These include:
- LLC Insurance.
- Absolut Insurance LLC.
- LLC "SF "Adonis"
- JSC "Alfa Insurance"
- LLC Insurance.
- Insurance LLC.
- LLC "Insurance"
- JSC "Insurance"
The borrower has the right to insure an apartment or other property with another company. In this case, Sberbank checks whether the selected insurer meets its requirements. This procedure may take up to 30 calendar days.
The main criteria for checking Sberbank include:
- The period during which the company operates in the insurance market.
- Absence of persons with an outstanding criminal record in the management team.
- Indicators of the company's financial stability and solvency.
- Absence of regulations that limit the activities of the insurance company.
Compliance with Sberbank requirements is mandatory throughout the entire period of cooperation.
