VTB 24 offers clients favorable conditions for purchasing housing, both on the primary and secondary markets. Mortgage insurance at VTB is a prerequisite for obtaining a mortgage loan.
An insurance policy is purchased for the entire period of validity of the mortgage agreement, and insurance premiums must be paid once a year according to the monthly payment schedule.
VTB mortgage insurance
VTB company offers three types of insurance programs. The client can choose any suitable offer. Mortgage conditions will be more favorable when purchasing a comprehensive insurance policy. You can also return the insurance after receiving the loan.
Mortgage life insurance
Many clients wonder whether life insurance is required when taking out a mortgage loan. This type of insurance is not mandatory and can be issued at the request of the borrower. However, this policy option has a number of advantages:
- when taking out life insurance, the bank can reduce the interest on the loan , thereby reducing the amount of monthly payments and the total overpayment;
- in the event of an insured event (death), close relatives will not be liable for the borrower’s debts, and all expenses for repaying the debt will be covered by the insurance company;
- in the event of disability or a period of temporary incapacity associated with illness, the insurer undertakes to pay the insurance payment, which is specified in the contract.
VTB Bank becomes the beneficiary here, since in the event of the death of the borrower, the insurer transfers the insurance premium to the lender. This policy insures not only the borrower, but also co-borrowers on the loan.
Insurance risks include :
- death of the borrower or co-borrowers;
- disability of 1-2 groups resulting from illness (heart attack, stroke, cancer, etc.) or accident.
The contract provides for exceptions to insurance risks, upon the occurrence of which the premium will not be paid :
- suicide;
- intentional infliction of harm to health;
- an insured event that occurred as a result of alcohol intoxication;
- HIV and AIDS diseases;
- An accident that occurred as a result of driving a vehicle without a license.
Apartment insurance with a mortgage at VTB24
Property insurance is a prerequisite when applying for a mortgage loan . This condition is mandatory not only for the financial company VTB, but also for other commercial institutions.
Property insurance is the financial protection of residential property in the event of an insured event, as well as from illegal actions aimed at deliberate damage and destruction of housing. The borrower can choose the validity period of the policy
Insured events include:
- collision with a motor vehicle;
- intentional damage to real estate by third parties;
- falling aircraft debris or other objects;
- groundwater outlet;
- subsidence of soil under the house;
- explosion of domestic gas or steam boiler;
- lightning strike, etc.
Title
Includes insurance for loss of property as a result of restrictions or deprivation of ownership rights to a property during the first three years of home ownership. Typically, this option is used when purchasing real estate on the secondary market.
Risks include loss of property rights to housing by a court decision, due to the invalidity of executed documents, or recognition of the previous owners as incompetent.
Important!
VTB may offer to issue a policy for three years, five years, or for the entire period of the mortgage loan. However, do not forget that in case of early repayment of debt obligations, money for the unused insurance period will not be returned.
Is it necessary to pay mortgage insurance annually?
Typically, an insurance contract is signed for the entire term of the mortgage loan, breaking it down into annual payments that must be made on a mandatory basis. Such payments are especially convenient because in the future you will not need to draw up a new agreement every year; you can simply limit yourself to making the next payment.
Consequences of missing regular payments
When a person’s mortgage insurance is overdue: what to do, what will happen - these are the main questions to which he is trying to find an answer. Sometimes the debtor simply forgets to do this, because payments of this nature are made once a year. In this case, you should not delay resolving the issue. It is better to immediately call the bank operator and explain the current situation, and then pay off the debt as quickly as possible.
But in practice, it is quite difficult to forget about a payment, because bank employees try to remind their client that the deadline for making an insurance payment is approaching.
When the borrower has not transferred the funds to the insurer within the period established by the contract, the latter transmits information about the defaulter to the banking institution.
It has every right to:
- imposition of a fine;
- increase in percentage;
- accrual of penalties.
When, within a month, starting from the date of late payment, the insurance company does not see the funds due to it, credit managers should try to call the clients or guarantors, information about which is indicated in the contract. If it was not possible to get through directly by phone, managers send SMS messages describing the current situation and an offer to discuss further resolution of the issue in person.
When the efforts made do not bring any action, bank employees have the right to resolve the issue more harshly. After just six months, you can transfer the case to a judicial institution and demand final repayment of the loan ahead of time.
Note! The practice, according to which banks sold their clients' debts to collection agencies, has not been in effect recently. This is due to the fact that the above-mentioned organizations have shown themselves to be bad, which was recently covered in the press. Therefore, if a bank values its image, it will not use this method.
Cost of insurance for a mortgage at VTB 24
Each borrower has its own price for the policy, since it depends on a number of factors that will be taken into account when calculating the final cost of insurance services.
Insurance rates are distributed as follows:
- financial protection of the property – 0.33%;
- life and health of the applicant – 0.33%;
- deprivation of property rights – 0.33%.
On average, the price of the policy will be 1% of the amount of the mortgage loan, and every year 1% will be charged on the remaining debt.
How much does life and health insurance cost?
When calculating the cost of a life and health insurance policy, the characteristics of the applicant are taken into account. Such indicators as the borrower’s age, weight, gender, lifestyle, social status, place of work, etc. will be considered.
The average price for life and health insurance for a client in the first years will cost about 8,000-15,000 rubles, or 650-1,250 rubles monthly. Over the entire lending period, the total overpayment for the financial protection service will cost 80,000-200,000 rubles.
How much does apartment insurance cost?
To obtain the final price, the features and characteristics of the premises will be taken into account, such as the price of the apartment, the insurance risks covered by the policy, the size of the down payment on the mortgage, the condition of the premises and the territorial location of the residential property.
There is no mortgage insurance calculator on the official page of the financial company, but the borrower can use the website of one of the accredited organizations, for example, ingos.ru. Let’s say the principal amount is 1,853,000 rubles, then the cost of the policy will be 4,699.09 rubles.
Cheapest offers
Based on the information received, you can determine which of the accredited insurance organizations will provide the most profitable insurance. However, borrower protection and real estate insurance should be considered separately , since these are different types of insurance, with their own tariff features.
For life and health
Borrower insurance at Renaissance Insurance will be the cheapest. Its maximum cost is 0.77% per annum of the loan amount. The minimum is only 0.1%. At the same time, the gender, age, place of work, current state of health and financial situation of the borrower are taken into account. The organization offers insurance not only against obvious risks (death from an accident or loss of ability to work), but also against cases of life-threatening viral diseases.
Insurance is also provided in cases of loss of solvency by the borrower. However, only the termination of the employment contract through no fault of the client will be considered an insured event.
For real estate
Rosgosstrakh company is one of the most experienced insurers. Therefore, it is not surprising that this particular insurance organization was able to offer its clients the most favorable conditions for real estate insurance. The insurer offers a minimum rate of 0.1% and a maximum rate of 0.65%. The cost will depend on the condition and location of the property. At the same time, the client protects his property from accidents, natural disasters and actions of other persons.
In this case, the amount of insurance will be equal to the market price of the lost property or the cost of work aimed at restoring its original condition and suitability for use.
Read about what kind of real estate insurance there is for a Sberbank mortgage here.
Read our other materials on this topic:
- Is it possible to return the insurance if the loan is repaid early at Sberbank?
- Options for obtaining mortgage insurance at Sberbank for each year.
What documents need to be provided
When applying for a financial protection policy, the borrower must provide the following package of documents :
- Original and copies of all pages of the general civil passport of the title borrower, as well as all co-borrowers, if they are provided for in the agreement.
- Certificate of pension insurance (SNILS).
- To issue a life and health insurance policy, the applicant must provide a certificate from a medical institution about the client’s health status. It must indicate that the borrower does not suffer from severe chronic diseases.
- A certificate from the tax service, which indicates that the client has no debts to the State for taxes and duties. You also need a document confirming the absence of debts on utility bills and the absence of arrears on alimony.
- Documents confirming ownership of the living space.
- Papers for the property regarding the assessment of the value of the apartment.
- Mortgage agreement.
Important!
The insurer may check the legality of the transaction, so additional documents may be required.
Tax deductions for insurance
Tax deductions for mortgage lending depend on two factors:
- The amount of personal income tax that the client pays when calculating wages.
- The cost of the acquired real estate.
A tax deduction is applied to insurance and the total loan amount in the following cases:
- Registration of a mortgage for the purchase of real estate.
- Obtaining a loan to build a house.
Even if the applicant plans to quickly close the loan debt, paying for insurance is a mandatory requirement. Therefore, you should not count on receiving an uninsured loan.
It is important to obtain information on all possible loan offers in advance. The best solution is the services of a credit lawyer. Especially if you need to get a mortgage. Particular attention should be paid to those products that are mandatory and those that can simply be imposed on the client.
How to apply for and pay for mortgage insurance VTB 24
Registration and payment for financial protection services is as follows:
- The applicant must contact VTB commercial bank to fill out an application. On average, the application form contains 10 pages, which you must read before signing.
- A financial institution specialist will provide a list of accredited insurance companies from which the borrower will need to choose the appropriate option.
- After reviewing the financial protection programs provided, the borrower needs to select the type of insurance policy, for example, a comprehensive product.
- The client must choose a convenient option for paying the insurance amount. It can be paid in installments or in one payment in full.
- The applicant must submit a package of documents to a specialist from the institution to verify their authenticity.
- A company employee will use a special calculator to calculate the cost of the policy and notify it to the borrower.
- Finally, the applicant must pay the cost of insurance in any convenient way. If you have chosen the insurance company VTB Insurance, you can make a payment on the company’s website. The receipt will be sent to the client's email address.
Important!
Methods of payment for policies of other insurance companies must be clarified directly with this organization.
What happens if the delay is systematic
If the debtor systematically fails to fulfill its obligations under the insurance contract, the consequences will depend on the specific banking institution.
It is worth considering in more detail the consequences that occur in the absence of insurance payments:
- Early mortgage payment. The bank demands early repayment of the remaining amount. He does this through the courts. If the loan agreement contains the relevant information, the request will be satisfied. Therefore, when trying to find out the consequences of delay, you must first turn to the terms of the contract.
- Increase in interest. Filing a claim with the court is quite a costly procedure, so to begin with, the bank is trying to simply increase the interest rate on the mortgage. Moreover, this growth is considerable, it can reach up to 20%. This greatly increases the final price of the mortgage.
- The accrual of penalties is characterized by the establishment of a certain amount of penalties, which begins to accrue from the day of delay. Usually it is 0.5-1% of the amount of the outstanding payment.
- Collection of insurance funds in a judicial institution. Article 310 of the Civil Code establishes the impossibility of repudiating one's debt obligations. For this reason, the court takes the side of the financial institution in such cases.
After the issue is resolved in favor of the plaintiff, the defendant will have to:
- pay the debt off,
- pay penalties and fines,
- reimburse all expenses of the plaintiff that were associated with the trial.
Where is life and apartment insurance cheaper?
Before purchasing a policy, you must familiarize yourself with the offers of all accredited insurance companies. The difference in cost can reach 20-30% . When choosing an institution, various factors should be taken into account:
- Experience in the insurance market for at least 3 years;
- availability of a license to carry out this type of activity;
- the amount of insurance payments should not exceed 10% of the company's authorized capital.
Comparative table of mortgage insurance costs by company:
| Name of the organization | Property, % | Life and health, in% | Title, % |
| VTB Insurance | 0,33 | 0,33 | 0,33 |
| RESO | 0,1 | 0,26 | 0,25 |
| Rosgosstrakh | 0,17 | 0,28 | 0,15 |
| Ingosstrakh | 0,14 | 0,23 | 0,2 |
| Sogaz | 0,1 | 0,17 | 0,8 |
This is not the entire list of accredited companies where you can apply for financial protection services. It can be seen from the table that cost the client the most , since the minimum percentage of the insured amount is established here.
