Is mortgage insurance required (Sberbank)?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Many people in our country want to buy housing with the help of loans. Naturally, they are interested in whether insurance is required for a mortgage at Sberbank? Read more about this service in the article.

Types of insurance

There are 2 types of mortgage insurance in Sberbank:

• life and he alth;
• property.

The first type of service is not considered mandatory, but if you refuse, the loan rate increases. Mortgage insurance at Sberbank is mandatory. By purchasing real estate, the client transfers it as a pledge for the period that the contract is valid. Therefore, it will not work to refuse mortgage insurance at Sberbank. Insurance is issued for the purchased object.

Design

Insurance is issued at the conclusion of the loan agreement. If you need to renew the policy, then you can do this on the Sberbank website. There are 2 products that customers can use:

1. "Protected Borrower Online".
2. "Mortgage Insurance Online".

The first policy serves as protection against the risks of loss of he alth or carefrom life. And the second is designed to protect against loss, damage to real estate, which is a pledge.

Protected Borrower Online Program

To order this service:

1. Go to the Sberbank website;
2. Visit the section "Insure yourself and property";
3. You need to find a service and connect it.

This program covers the risks of group 1 and 2 disability and death. The amount of compensation is equal to the amount of the loan to be repaid. The policy is valid for 1 year.

Mortgage Insurance Online Program

The policy under this program is renewed on the site. To do this, you need to find the appropriate section and activate the service. It covers the risks of the collateral object:

• walls;
• partitions;
• windows;
• door;
• roof.

Insurance policy reimburses when:

• fire;
• gas explosion;
• lightning strike;
• natural disasters;
• illegal actions of third parties.

The policy is valid for 1 year.

Insurance companies

If mortgage insurance is issued at Sberbank, then full compensation for damage is guaranteed with the occurrence of an insured event. The activities of the insurance company are carried out by Sberbank Insurance.

Customers can choose from 17 companies:

1. "VTB Insurance";
2. "Ingosstrakh";
3. "RESO-Garantia";
4. "Absolute Insurance";
5. Rosgosstrakh.

Each program offers its own conditions, puts forward requirements for clients. The contract is drawn up at Sberbank, after which the service begins to operate. In the event of an insured event, each company guarantees compensation for losses.

Risk accounting

Insured events include:

• damaging the object;
• steal;
• fire, flood;
• gas explosion;
• natural disaster.

If the property is completely destroyed, the full repayment of the loan occurs. Partial damages are also compensated. The amount of coverage is determined on an individual basis.

Conditions

Insurance conditions vary by company. Not all policies are accepted by the bank. It is important that it fits all the requirements of the lender. Sberbank works with firms that cover common risks. This allows you to be sure of a refund.

On the Sberbank website you can find a list of insurance companies. At the same time, the creditor should not impose on the insurers with whom the contract is concluded. The client can choose the company himself.

Peculiarities of issuing a policy

Before mortgage insurance is issued at Sberbank, you need to pay attention to important aspects:

• coverage amount – according to the standard contract, an amount equivalent to a loan with an overpayment is assumed;
• the size of the company's premium to Sberbank borrowersa single rate is offered - 0.15% of the price of housing;
• policy duration - usually equal to the term of the contract;
• rollover conditions - some firms increase interest rates after 1 day;
• early repayment - usually insurance premiums are returned when the loan is paid prematurely. If this information is not in the contract, then difficulties may arise during the return.

Insurance should be taken out only if all the conditions for it suit you. It is advisable to familiarize yourself with the rules of several firms in order to choose the right one.

What do you need?

What is required for an apartment insurance for Sberbank? A mortgage with this service is issued together. To get a policy, you need a passport, a loan agreement, a certificate with an assessment of the value of the object. According to the last 2 documents, the price of the policy is set. The insurance premium is affected by:

• property condition;
• duration of insurance contract;
• number of risks.

Cost

How much does mortgage insurance cost at Sberbank? The price is determined by the condition of the property and the value of the apartment. The company performs individual calculations for all clients.

There are 2 options to choose from:

• policy is bought for the entire cost of the apartment;
• the policy is purchased for the amount to be paid to the bank.

The average rate is 0.225% of the loan amount. For example, real estate costs 3 million rubles,the first payment was 1 million rubles, and the policy is bought for the amount of the debt, then mortgage insurance at Sberbank will cost 4,500 rubles. The cost of the document is about the same in other institutions.

The policy has a validity period of 1 year. When it expires, it is possible to use the extension or issue a new document in another company. It is acquired through an annual fee. There are no benefits in insurance.

Return

The borrower has the right to return payments made beyond the term of the mortgage. There are some subtleties in this issue:

• if the policy is valid for 11 months or more, then the entire amount is returned;
• if the loan is repaid and the policy is valid for another half of the term, the client receives half the insurance premium;
• if most of the policy period has passed, then it makes no sense to return the funds.

How to return Sberbank mortgage insurance? You need to submit an application, attaching a bank statement confirming the absence of debt. A refund can also be issued with life and he alth insurance.

Life and he alth insurance

Life insurance with a mortgage at Sberbank is not a mandatory requirement. But usually employees insist on registering a service to reduce the risks of non-payment of debt. If insurance is not taken out, then the rate rises by 1%.

Life insurance with a mortgage at Sberbank involves the imposition of an additional financial burden, and more than the mandatory property insurance. Butdue to its benefits, the service is considered in demand.

Why do you need life and he alth insurance?

The policy guarantees the reimbursement of funds to the bank in case of loss of he alth and death. Since a mortgage is issued for a long period, Sberbank protects itself from such risks. For the client, the policy is considered a guarantee that in case of accidents his credit obligations will not be transferred to guarantors and relatives, since the debt is repaid by the insurance company.

If the borrower is temporarily unable to work, his loan is also paid by the company. If you refuse to issue such a service, the rate increases. The list of risks can include:

• death;
• disability;
• loss of job.

Sberbank-Insurance operates under the following programs:

• standard program - 1.99%;
• he alth and job loss - 2.9%;
• self-selection of parameters - 2.5%.

Title Insurance

Sberbank offers title insurance, which involves insurance of property rights. If a client paying a mortgage for housing is deprived of the rights to it, then the insurer takes all material obligations to pay the debt.

A borrower who purchased an apartment on a mortgage is deprived of property rights in several cases:

• there are errors in the documents, due to which the transaction is declared invalid;
• new copyright holders were discovered, whose interests were not taken into account when drawing up the contract;
• the person on behalf of whom the transaction was executed was declared legally incompetent;
• fraud was used.

Title insurance is more suitable for resales, as new builds make borrowers the first owners. The rate for the service is 0.3-0.5%.

Documents

Mortgage insurance at Sberbank in Moscow and any other city is issued with the following list of documents:

• statement;
• passport;
• loan agreement.

Sometimes a sales contract is required.

Pros and cons

Insurance has the following benefits:

• renewal through the site;
• no need to visit the bank and the insurance company, as all actions are performed by the insurer on their own;
• policy is issued electronically;
• policy price depends on the amount of debt;
• favorable rates;
• reliable transmission of information;
• possibility of insurance premium refund.

From the minuses, the following aspects are distinguished:

• with a mortgage, it is necessary to issue a service;
• although life and he alth insurance is not considered mandatory, the loan rate increases by 1% if you refuse it;
• the policy is valid for 1 year, after which it requires renewal;
• renewal of the document with a reimbursement amount of 1.5 million rubles online will not work;
• additional costs.

Housing loans

Mortgage insurance covers everythingprograms offered by Sberbank:

1. Mortgage with state support. The first payment is at least 20%. The maximum term is 30 years. The overpayment is assigned individually, but from 11.4%. There is no commission for issuing a loan, but there are real estate appraisal costs.
2. Purchasing a finished apartment. Such a loan is issued when buying real estate in the secondary market. The amount is issued from 300 thousand rubles at a rate of 12.5% and for a period of not more than 30 years. The amount of the first payment is determined by several factors, but not less than 15% of the cost of housing. The first installment is paid by maternity capital.
3. Purchase of housing under construction. The terms of the loan under this program involve the provision of funds for the purchase of housing in new buildings. Its amount, as with the purchase of a finished object, is equal to 300 thousand rubles. The minimum rate is 13%. Mortgages are issued up to 30 years. The first payment can be made at the expense of maternity capital.
4. Individual construction of a house. A loan is issued from 300 thousand rubles at 13.5%. The first payment is equal to 30% of the cost of housing. A loan is issued up to 30 years.
5. Mortgage for the construction or purchase of a country house. The down payment is 30% and the loan period is 30 years. Amount - from 300 thousand rubles.
6. Military mortgage. Issued to military personnel. The amount is not more than 1 million 900 thousand rubles. The rate is 12.5%.

Requirements include a return of 21 years, and at the time of return must be a maximum of 75 years. Must have at least 6 months of work experience. It is necessary to invite co-borrowers - up to 3 individuals.

To apply for a mortgage, you need a passport, application form, ownership, certificate of registration of rights. You also need an expert opinion on the assessment and value of the object, the cadastral and technical passport of the object. Together with the registration of the mortgage, an insurance contract is drawn up. But if home insurance is mandatory, then life and he alth is chosen at the request of the borrower. With these services, material costs increase. Therefore, it is necessary to carefully consider whether there will be material opportunities to pay for such services.