List of documents for insuring an apartment with a mortgage or what documents are needed for real estate insurance

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 apartment insurance

Today, a borrower must take out compulsory insurance to obtain a loan. In this case, it is possible to conclude an additional agreement on real estate insurance. In addition to compulsory insurance, the borrower can also insure his own life, health, and ability to work. There is also a special type of insurance, which is commonly called title insurance.

Such an agreement is aimed at protecting the borrower from the influence of past events, the illegality of which may render the transaction invalid. This often happens when purchasing real estate on the secondary market, when, due to erroneous or fraudulent actions, the transaction is illegally executed and the borrower loses the right to own the apartment.

If the borrower enters into a comprehensive insurance agreement, he can count on a reduction in the mortgage rate on the loan. In this case, additional insurance is concluded only with the consent of the borrower, but if you refuse to enter into such an agreement, you should be prepared that the mortgage rate will be increased by the credit institution.

Traditional items include insurance against the following circumstances:

the occurrence of a fire, flood or explosion in the apartment;
illegal actions of third parties;
natural disasters.

Such items are intended to reduce the level of risk if negative events occur in the future.

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: Russian Railways JSC file a complaint

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 required?

To conclude an insurance contract, you need to provide a fairly large list of documents. The borrower fills out a standard application form, thereby indicating his desire to use the services of a specific insurance organization. The list of documents depends on the lending program and the requirements of a particular insurer. They can be divided into three main categories:

relating to a real estate sale transaction;
confirming the identity of the borrower, characterizing him;
relating to the property for the purchase of which a mortgage loan is issued.

An insurance contract can only be concluded if the following conditions are met:

house wear is less than 60%;
the client has an opinion on the condition of the apartment and an assessment report drawn up by an expert;
previously only legal transactions were made with the property;
The apartment has a full package of title documents.

Failure to comply with even one of the listed points will result in the insurance company refusing, and it will not be possible to conclude an apartment insurance agreement.

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.

Answers on questions

Is it necessary to insure an apartment with a mortgage?

Yes, insurance of collateral is a mandatory condition . Without it, no bank will issue a mortgage to a client. But there is one nuance here: some banks ask to leave as collateral an apartment that the borrower takes out as a mortgage, while others allow the use of real estate that a person already owns (he has ownership rights to real estate) as collateral.

What is the validity period of the apartment mortgage insurance contract?

In practice, such an agreement is usually concluded for 1 year or for the entire term of the mortgage with an annual renewal . This must be specified in the agreement concluded between the bank and the borrower. Typically, the term of the insurance is equal to the term of the mortgage agreement.

Can a borrower change insurance companies if a mortgage agreement has already been issued?

Yes, he can do this, but he can enter into an agreement with a new insurance company only after the previous agreement expires.

When purchasing an apartment with a mortgage, banks require borrowers to draw up an insurance agreement for the collateral. This requirement is justified and is enshrined in current legislation.

If it is not necessary to insure life, health and disability insurance, then the borrower does not have the right to refuse real estate insurance.

Apartment insurance is necessary for both the borrower and the bank. As part of the insurance policy, the borrower protects the apartment from the risk of loss, damage or loss. And the bank insures itself in case something happens to the mortgaged apartment and the borrower does not want to repay the mortgage loan.

Video: Mortgage insurance

Almost all banks offer a mortgage lending program. Interest rates may vary, but a mandatory condition of all credit institutions is mortgage insurance of the purchased property. An apartment purchased with a housing loan automatically becomes the subject of collateral. Therefore, the bank will require you to provide an insurance policy for your home before signing the contract. The terms of apartment insurance are usually equal to the terms of the mortgage loan.

When applying for a loan, the bank may require the borrower not only to insure the purchased living space, but also additional types of insurance, for example, life insurance, disability, etc. This significantly affects the cost of the insurance product, but is not mandatory. When insuring collateral, the bank tries to protect itself from the risk of loss of non-payment of the loan by the borrower, in other words, from the loss of expected profit.

In the event of damage to the apartment in the form of fire, flood, illegal actions of other persons, or natural disasters, all costs of compensation for damage are borne by the insurance company.

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: Examples of a Statement of Disagreement with Collection of Legal Costs

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: Why do we need a Cadastral Passport for a Land Plot and Land Surveying?

Insurance of private residential buildings

When choosing insurance risks included in the contract, it is necessary to soberly assess the likelihood of their occurrence in each specific case. For example, if the house is located in the central part of Russia, where droughts and, as a consequence, fires caused by them are common, it would be appropriate to include such a risk in the insurance. And many country houses used as summer cottages do not have central heating or running water, which minimizes the number of domestic accidents. In theory, after inspecting a home, an insurance company representative should analyze the most likely risks and advise the client about them, but in practice, they often advise purchasing a policy with the maximum number of insured events included, since they have a financial benefit from this.

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 obtaining mortgage insurance at the bank and insurance office

A mandatory type of mortgage insurance is constructive - financial protection of the apartment pledged as collateral from critical damage due to various circumstances beyond the control of the borrower. You will need to prepare papers related to the property and personal ones for the client. Title insurance involves providing written confirmation of the legal purity of the property. On the contrary, life insurance can be issued without medical certificates and opinions.

Important! In addition to the basic package, the insurer has the right to request additional information to calculate the final cost and make a decision on the possibility of concluding a contract. The borrower must be responsible for preparing the necessary documentation.

Next, we will consider in detail what documents are required for insurance, and what additional papers may be needed.

Life and health insurance

Before concluding a health and life insurance contract, the borrower must fill out a questionnaire containing questions about the current state of health, the presence or absence of chronic, hereditary diseases at the current time and in the past. We previously wrote about this type of protection and its cost. In addition to the insurance application, you will also need your passport information.

Based on the questionnaire data, the insurance company may additionally request:

An extract from the medical history, if any.
Certificates of absence of oncological, chronic and hereditary diseases at the current time and in the past.
Conclusion of the pre-insurance medical commission.
Information about practicing hazardous sports.

Important! In the event of an insurance situation, a thorough check will be carried out to pay compensation. If it is discovered that false information has been provided at the registration stage, the money will not be paid.

Insurers almost never ask for documentary evidence of personal data. By signing the application, the borrower confirms the accuracy of all information specified in the application form and accepts responsibility for knowingly incorrect information.

Apartment insurance

The required package of required documents for the borrower consists of:

A copy of all pages of the passport.
Completed insurance application.
Loan agreement.
Certificates of marriage and birth of children.
Documented information about income and methods of obtaining it.
Notarized consent of the second spouse to conduct the transaction. This document must contain complete information about the loan being received.

Mandatory documents for insuring an apartment with a mortgage are:

A report on the assessment of the market value of the property that is pledged as collateral under a mortgage.
Proof of ownership.
Cadastral passport of the object.
The act of acceptance and transfer of the apartment.

To insure housing purchased with a mortgage on the primary market, the basic package will be sufficient. For the secondary, additional papers may be needed:

Extract from the house register.
Floor plan of the house.
A certificate or statement from a personal account confirming the absence of debt on utility bills.
Legal confirmation of the redevelopments carried out.

Title Insurance

Real estate title insurance provides financial protection in the event that the borrower may lose ownership of the property. Read more about the cost of such a policy here.

Additional documents required to obtain mortgage title insurance include:

History of transfer of ownership with justifications for the last 3 years.
Conclusion of the guardianship authorities if there were shares of minors in the apartment.
Certificates from a psychoneurological clinic from all parties to the transaction. This document must confirm the absence of registration for diseases that imply the possibility of challenging the transaction.
Extract from the house register.
Explication and floor plan.
Extracts from the Unified State Register.

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.

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.

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.