Sberbank mortgage insurance: where mortgage insurance for an apartment is cheaper, how to pay for an online calculator, how to properly insure real estate, how much it costs, what are the required titles, return on

What is home and life insurance on a mortgage?

Before receiving a loan to purchase housing, a banking organization insists on concluding an insurance agreement.
The lender's goal is maximum security of the issued funds. When insuring the life or health of the debtor, the insurance company pays the remaining amount of the mortgage to the bank if the borrower dies or receives 1st or 2nd degree disability. A separate clause in the contract stipulates the situation in which the policyholder goes on long-term sick leave. If the borrower refuses to purchase the above policies, there can be two developments:

Refusal to purchase an insurance policy for a property will result in the inability to receive funds. After all, this is a mandatory condition, according to Federal Law-102, Article 31 “On Mortgage”.
Failure to purchase a life insurance policy will cause your mortgage interest rate to increase.

Attention
According to Federal Law No. 102, Article 31 “On Mortgages” states that issuing a policy on collateralized property is a legally mandated obligation for the mortgage borrower.

Consequences of systematic non-payment

Depending on the creditor bank chosen, the consequences of systematic non-payment of insurance may vary. Let's take a closer look at what happens if a person defaults on mortgage insurance at one of the large financial institutions, for example, Sberbank.

Requirements for early payment of mortgage

The bank may demand payment of the remaining amount ahead of schedule and in full by going to court. The claim will be satisfied if the loan agreement contains a corresponding clause. Therefore, first of all, the likely consequences of delay should be looked for in your copy of the contract.

Increase in interest rate

Filing a lawsuit is a costly matter, so the bank may limit itself to increasing the interest rate on the loan. The indicator may increase from 5 to 20%. This will significantly increase the cost of your mortgage. Therefore, it is unlikely that you will be able to save money on insurance.

Accrual of penalties

Also, as a penalty, the bank may impose a penalty, which will begin to “drip” starting from the first day of delay. Its average size is 0.5-1% of the amount of the missed payment.

Insurance collection through court

According to Article 310 of the Civil Code of the Russian Federation, the borrower does not have the right to refuse his debt obligations. Therefore, taking into account the legislative norms and the terms of the loan agreement, the court will take the side of the financial institution. The defendant will be forced to pay the debt, accrued fines and penalties, as well as reimburse the plaintiff for legal expenses.

What is mortgage insurance?

If a client receives a consumer loan, the bank does not insist on choosing an insurance company, but mortgage lending requires stricter control on the part of the lender. Banks have white lists and their own companies that insure borrowed funds.

In practice, the client can be offered a whole range of insurance services, but it is important to take into account that the legislation only provides for real estate insurance.

The cost of an insurance policy is influenced by such indicators as:

Type of lending program.
Mortgage term.
Estimated cost of purchased housing.

After determining the insured amount, it is multiplied by the tariff and divided by one hundred. In general, the amount of the annual insurance premium, depending on the category of the contract, varies from 0.3 to 0.6%.

VTB 24: online calculator for calculating mortgage insurance

Many Internet users prefer to calculate the cost of insurance before concluding a contract.
When taking out a loan for an apartment, the question of the cost of insurance at VTB Insurance Insurance immediately arises. But on the official VTB Insurance website there is no calculator for calculating the price of a mortgage policy. On the websites of other large insurance companies you can use a calculator for calculating insurance premiums at VTB. For example, on the Ingosstrakh or UralsibStrakhovanie page, there is a section with a calculator for calculating the price for an insurance contract at VTB.

Is it necessary to insure life and apartment every year with a mortgage?

For a banking organization, life insurance of the borrower is an additional guarantee of the security of the funds issued to him for a mortgage. When an insured event occurs, and this concept includes the death of the borrower, disability of 1 or 2 groups. As well as sick leave for more than 30 days.

That is why lenders insist on issuing a life insurance policy for a mortgage, so that in the event of an unforeseen situation, the insurance company will either pay off the borrower’s debt in full or take over payments for his obligations for a certain period (when taking out a long sick leave). Therefore, life insurance does not have to be renewed every year.

IMPORTANT

Life insurance is not a requirement for obtaining a mortgage loan. And you can refuse it. But in this case, some banks increase the interest rate, which makes refusal to purchase a policy pointless. At the same time, if an insured event occurs, the presence of a policy significantly facilitates the financial situation of the mortgage borrower and his family.

But the situation with purchasing a policy for an apartment that is pledged to a banking organization is completely different. According to Federal Law No. 102 “On Mortgage”, Article 31, the borrower is obliged to insure the collateral property and renew the insurance every year.

Attention

Even a short break in the validity of an apartment insurance policy can have serious consequences for the debtor. The bank has the right to go to court with a demand for full early repayment of the loan. Or sell the mortgage debt to collectors. Which makes the borrower's situation even more dire.

Purchasing an apartment insurance policy is a prerequisite when applying for a mortgage loan. Its cost depends on several factors:

Time frame for building a house.
The property was purchased on the primary or secondary market.
Floor material (concrete/slab/wood).
Material and condition of the roof.
The general condition of the house and apartment in particular.
Conditions of engineering communications (sewage systems, water supply, gas supply, electrical wiring, etc.).

The average cost of obtaining an insurance policy varies among different companies and ranges from 0.5 to 1.5% of the remaining loan amount. The amount of payments under the policy upon the occurrence of an insured event is equal to the market value of the property.

To make life and apartment insurance for a mortgage as profitable as possible for the borrower, factors such as:

The longer the policy period, the more profitable the insurance will be.
It is better to register your wife as a borrower. For women, the coefficient is not as high as for men when purchasing life insurance every year.
Many insurance companies offer a discount to their clients if they prefer to issue a policy online rather than in person at the company’s office.
Ordering a preliminary calculation of the cost of the policy in several insurance companies will allow you to choose the best option for the price.

Carefully study the offers of insurance companies and do not agree to the insurance policy offered by the bank. Often, the cost of the policy will already include a bank commission. And its size can be 10-20% of the total amount.

To make the process of obtaining life insurance and collateral real estate as comfortable as possible every year after receiving a mortgage, you should follow a simple algorithm of actions:

Select one or more insurance companies. Clarify the required package of documents, as well as the terms of the contract.
Collect a package of documents. It includes a passport of a citizen of the Russian Federation, a loan agreement, an application, a copy of the cadastral passport, a questionnaire (it must indicate personal data and characteristics of mortgage lending), a medical certificate (confirming the state of health based on the results of the examination, not required by all insurance companies), documents for real estate object.
Order a preliminary cost estimate for the policy from selected companies. This will allow you to choose the most comfortable mortgage insurance program.
Compare offers. When choosing, you need to take into account not only priority tasks (for example, the speed of issuing a policy), but also its cost, payment period, and ease of working with a representative of the insurance company.
Visit the office of the selected insurance company and sign the agreement.
Clarify whether the company representative transfers a copy of the insurance contract to the banking organization independently or is this your responsibility.
Pay the amount specified by the agent and, if necessary, personally deliver a copy of the agreement to the bank.

We suggest you read: Is it possible to issue a compulsory insurance policy in installments? Note:
If the main task is the speed of issuing a policy, then many borrowers every year choose in favor of the Sberbank-Insurance program. An undeniable advantage is the ability to purchase insurance without leaving the walls of your office or home. To do this, just go to the website and purchase a mortgage insurance product within a few minutes.

The legislative framework of the Russian Federation does not provide for any penalties or other punishment for the borrower’s refusal to renew the life and health insurance policy for a mortgage every year. Therefore, in the second and subsequent years, you can safely cross out this expense item from the family budget. Of course, only if the borrower himself wants it. However, your mortgage interest rate may increase.

But refusing to insure collateral (an apartment purchased with a mortgage) will not work. In this case, the optimal solution would be to renew the policy in a timely manner. Because in the event of a break in the insurance period, the insurance company independently transmits information to the lender. And the bank begins to charge a fine.

VTB mortgage insurance: calculator

To quickly and accurately calculate the required compensation and the amount of annual payments, you should go to the official website of the financial institution in a special section with everything related to housing lending.
If desired, you can extend the mortgage protection if the price of the policy suits you. During the calculation process, you need to take into account the fact that the final cost will automatically be influenced by factors such as:

Insurance calculation.
Annual payments.
General condition of the property at disposal.
Valuation of an apartment or house purchased with this loan.
Age and general health of the organization's client.
Validity period of the agreement.

What matters is the condition of the premises and their compliance with established quality and fire safety standards. All this is taken into account in the overall calculation.

VTB 24 Bank knows exactly what it wants and what the client wants. The bank has about 20 mortgage lending programs, but only 6 are the most popular.

A mortgage calculator will help you figure out which mortgage program is suitable for solving your housing problem.

Mortgage conditions differ significantly depending on whether you need a loan for a secondary home, for a new building, for the construction of a private house, or simply for a plot of land.

This is an extra expense for them. Next, we will tell you how much such a contract costs, how it is executed, and what the law says about this.

Pay or ignore?

Many bank clients have a question about whether it is possible to refuse insurance services, and what will happen if they do not pay mortgage insurance. failure to fulfill obligations is fraught with the following consequences:

If the borrower stops paying the installments, the bank gets involved. First of all, the client receives messages or periodically calls from specialists.
If payment is not received, the bank goes to court with an initiative to early repay the borrowed funds.

What decisions can the court make:

A decision by court to repay the entire loan amount.
Some lenders apply interest rate hikes.
A penalty may apply.
Judicial recovery. If the client does not respond to calls and SMS, continuing to wonder whether it is necessary to pay mortgage insurance, the court obliges the borrower to pay the debt, penalties, interest and all legal costs at the expense of the lender.

In cases where something happens to the apartment, it is necessary to notify the lender and the insurance company. And many people have a question about what will happen if, when an insured event occurs, the insurance is not paid, or simply does not cover the expected expenses. According to the bank's explanations, such situations are not acceptable, since the lender does not allow any part of its money to be unguaranteed.

Advantages and disadvantages

pros	Minuses
If an emergency happens to a VTB client, he will not need to worry about repaying the loan.	You cannot get a targeted loan to buy an apartment from VTB without taking out a policy.
When an insured event occurs, part of the policy can pay off the debt to VTB, and part is given to the borrower.	Additional expenses that significantly increase the amount of monthly payments, since the policy is not a cheap product.
The policy allows you to protect your home and its owners, who will not be left on the street.	Not all emergency situations fall under the insured event; there are many nuances and exceptions.
If desired, the conditions can be changed to more profitable and loyal ones.
The policy will not only cover all expenses and provide full compensation for damage, but will also allow you to restore the condition of the damaged property.

READ MORE: The culprit of the accident is not included in the compulsory motor liability insurance policy: what to do if such a situation occurs?

Is it necessary to insure life and apartment every year with a mortgage?

The cost of a life insurance policy for a mortgage is calculated by an insurance company employee at the time the client applies. In most cases, the amount of insurance will be from 0.5 to 1.5% of the amount of debt to the bank. When calculating the cost of the policy, factors such as:

Floor. For women, the risks are lower, so the optimal solution would be to issue a loan to the woman, and the husband can be made a co-borrower. This will reduce the cost of purchasing a policy by 30-50%.
Age. The older the insurance company client is, the higher the coefficient will be. Many companies refuse life insurance to borrowers whose age category is 60.
Chronic diseases also have a negative impact on the cost of the policy.
Health status. A mandatory condition will be to undergo a medical examination. Based on the results of the survey, the insurance company specialist makes a conclusion about the advisability of using an increasing coefficient.
Excess weight will also become an aggravating factor.
Professional activity. If the work involves health risks, then the cost of the policy will be much higher.
Loan amount. The higher it is, the more increasing factors will be used by the insurance company.

Please note:
To choose the best cost life insurance policy, experts recommend contacting several insurance companies and calculating the preliminary insurance amount taking into account all factors.

Let's look at the example of Sberbank, which methods of calculating penalties are used by lenders for untimely renewal of an insurance policy on collateral for a mortgage every year.

The amount of the penalty is calculated based on the annual interest rate. For example, if the mortgage is issued at 10% per annum, then to calculate the amount of the penalty the value of 5% will be taken into account.
Then the number of days of delay is determined. It is the interval between the expiration date of the previous policy and the beginning of the new one. Let's say 30 days.
The balance of the debt to the bank is taken into account. For example, 600 thousand rubles.
Total, we get: 600 thousand rubles * 5% (1/2 the annual loan rate) * (30/365). We get the amount of the penalty equal to 2465 rubles.

We suggest you read: Which insurance companies are the most reliable?

Using this simple formula, you can independently calculate the amount of the penalty.

Attention

If the policy was purchased in advance, and the bank began to charge penalties, then the only option would be to immediately provide copies of insurance contracts. Based on them, the employee will make adjustments to the program and the penalty will be removed from the debtor.

Such a demand from banks is unlawful. The bank can offer the client this type of insurance. This happens in cases where:

The client has health problems.
He is engaged in hazardous work.
He is interested in extreme sports.
The work involves a threat to life and health.

To prevent the situation, you can immediately submit a certificate from a medical institution about good health. If you do not pay for this type of insurance, the bank does not have the right to take measures to fully collect the debt or increase interest rates.

Many contracts are concluded at Sberbank, which is stable and reliable. The bank offers one mandatory type of home insurance; all others are considered additional and are insured on a voluntary basis.

Payment of the insurance amount involves an annual one-time payment. If the client does not have the opportunity, the amount can be divided into equal parts into four payments.

In case of late payments, Sberbank:

Notifies the debtor in writing or by email.
Has the right to apply penalties provided for in the current agreement.
Consider the issue in court by filing a claim against the debtor.

If the client did not pay the insurance premium on the military mortgage, but the agreement was signed by the borrower, all points must be met and payment must be made on time.

The insurance contract specifies what the insurer will pay for and what it will not pay for. Each line of the insurance agreement is a real life situation that can happen to anyone. Therefore, carefully study this document and assess the level of responsibility of the insurance company.

The borrower is required to insure the property. You need to know the following about this type of insurance:

if the apartment is flooded due to a roof leak, this is not an insured event. If the neighbors are at fault, the insurer pays;
if ceilings collapse due to a domestic gas explosion, the insurer needs to find out the degree of wear and tear on the gas equipment. For an old fund, there is a greater likelihood of non-payment; for a gas explosion in a new building, insurance will most likely be paid;
if a crack appears in the wall due to natural shrinkage or due to old age, the insurer does not owe the borrower anything.

If you are planning to buy health insurance as part of a mortgage, undergo a paid examination at an independent clinic and receive a certified medical report confirming the absence of pathologies. When insuring health insurance, insured events most often do not include:

oncological diseases;
suicide;
hepatitis;
tuberculosis;
injury or death due to alcohol or drugs.

If the cause of death is a chronic illness, the insurance company will try to prove that the borrower concealed the fact of having a fatal disease. Each insurer has its own list of diseases for which they do not pay.

A job loss insurance policy is another popular mortgage companion. Payment under this policy will be denied if:

the company ceased to exist;
the employment contract was terminated due to circumstances that arose regardless of the will of the employer and employee;
the borrower wrote an application of his own free will;
fired due to a change in management;
the borrower receives unemployment benefits;
The employee was fired due to his own fault.

Insurance against non-mortgage payments

Banks usually offer several types of insurance for mortgage lending.

This way you can protect yourself and financial institutions from:

damage or destruction of property,
death of the borrower as a result of serious illness or accident,
loss of ability to perform work duties due to acquired disability of the first or second group,
loss of property rights when purchasing secondary housing (title insurance).

If the insurance contract is signed, if one of the events specified in it occurs, the insurance company will pay the amount remaining until the mortgage is fully repaid.

Note! The law provides for mandatory insurance of collateral against unforeseen circumstances. Other risks may be included in the contract only on a voluntary basis.

Information regarding risks should be discussed with the loan officer in advance, even before the documents are signed. It would be a good idea to carefully read the contents of the loan agreement and insurance agreement.

You should not save much and refuse additional insurance, because, as you know, the stingy pays twice.

In recent years, statistics show that mortgage borrowers are increasingly purchasing complete risk protection. Their desire is quite understandable, because everyone wants to minimize the possibility of unpleasant situations arising.

Nobody knows how life will turn out next, and insurance is a kind of guarantor of safety.

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.

Advantages of taking out insurance when opening a mortgage at VTB

It is always useful for a borrower to evaluate the merits of signing an insurance agreement if there is a mortgage with VTB Bank. These include:

After purchasing insurance for the borrower, the financial risk in the situation of loss of work or legal capacity is reduced;
It is possible to select a suitable insurer from the proposed list or submit information on another company for consideration;
The object of insurance can be either a property on the new buildings market or on the secondary market;
After one year of insurance, you are allowed to change companies.

When applying for a policy, the client receives complete information on the terms and conditions of apartment insurance, which eliminates the possibility of questions arising in the future.

A policy that guarantees VTB 24 a return on invested funds should be purchased from organizations that are partners of the institution.

All insurers with whom the financial institution cooperates are thoroughly checked. Their financial condition is assessed, the stability of the companies is taken into account, as well as the purity of transactions.

VTB 24 imposes the following requirements on insurers:

Availability of a license.
Work on the market for more than 3 years.
No violations. Strict compliance with the law. Fulfillment of all obligations to the budget. Paying taxes.

The list of companies that were accredited by the bank includes more than 30 insurers. When concluding an agreement, the loan officer will offer the borrower a list of bank partners.

The list is as follows:

Copies of documents that prove the client’s identity. If the agreement provides for the participation of co-borrowers, it is necessary to provide copies of their documents.
Medical certificate about the client's health. It is required if personal insurance of the borrower is planned.
A document that confirms ownership of the apartment.
A certificate from the Federal Tax Service stating that there is no tax debt. Certificate of absence of debts on utility bills.
Estimation of the cost of the apartment.

We invite you to read: Raiffeisenbank termination of insurance contract

For example, an extract from the house register.

In the next section we will consider: VTB apartment insurance with a mortgage, cost.

After you calculate the insurance premium and find out where life insurance and apartment insurance for a mortgage are cheaper, you can begin registration.

The registration procedure includes:

calculation of the premium;
filling out an application;
contact the office or apply online.

To purchase insurance you will need:

borrower's passport;
certificate of ownership;
technical certificate;
statement;
loan agreement;
previously issued policy.

Let's look at the main advantages of purchasing mortgage insurance from VTB through our financial portal.

Pros:

Saves time because you don’t have to go to the office in person.
Each client independently chooses the risks under the contract.
Remote payment.
Opportunity to get an additional discount.
You can find out how to pay for mortgage insurance at VTB 24 in person and online.
Once you receive an offer, you can make an appointment at a time convenient for you.

Insurance: what is not an insured event

The amount of insurance payment is determined by employees of the insurance company in accordance with the terms of insurance. The bank is the beneficiary in the event of an insured event:

if a person is injured and as a result becomes disabled, the insurance will pay off the debt to the bank;
if the mortgaged home burns down, the insurer will pay the lender the remaining debt.

If the insurance premium exceeds the debt to the bank, the borrower will receive the remainder.

According to Federal Law-102 “On Mortgages”, Article 31, the only type of insurance that cannot be refused for 2 and subsequent years will be insurance of a property pledged to the bank. The remaining policies are optional and the borrower has every right to refuse to purchase them. However, if you refuse insurance, the mortgage interest rate may increase

Experts recommend resolving the issue by waiving voluntary life and health insurance, as well as title insurance (for real estate purchased on the secondary market) before signing the mortgage agreement. In this case, the procedure should be as follows:

Study the mortgage agreement. Clarify whether the banking organization provides for a change in the interest rate if the borrower refuses the imposed types of insurance for each year of the mortgage.
Write an application addressed to the credit manager assigned to your agreement. The application must notify you of the refusal to purchase the policy.
Having submitted the application in two copies, it is necessary for the employee to put his signature on one of them. Thus, this will be additional confirmation that the bank has notified the borrower’s intentions.
You should also call the Customer Support Center and try to resolve the issue promptly.

We invite you to read: CASCO Insurance Agreement

If, based on the results of all actions, the bank does not want to make concessions, then proposals from other credit institutions should be considered.

Is insurance required? Is it possible not to pay insurance for an apartment with a mortgage?

However, it only applies to insurance of purchased property, while many banks also force their clients to pay for life and health insurance. This may be stated in fine print, and the borrower, by signing the loan agreement, agrees to make monthly payments for all types of insurance.

Life or health insurance is not mandatory, and the client can exercise his right to refuse this type of insurance. Another question is that today not many banks agree to issue a mortgage without life and health insurance of the borrower. Or they increase the interest rate for issuing a mortgage without life insurance for the borrower.

Three ways to return insurance

According to the law, there are several ways to determine how to return mortgage insurance. They depend on the period within which, after concluding an agreement with the insurance company, the client wishes to issue a refund of mortgage insurance and only if the insured event does not occur:

within a month after the conclusion of the contract, the client can write a cancellation of the policy and issue a return - if the contract came into force after signing, the amount will be returned minus these days. If the contract was concluded with a deferred action and did not come into force during this period, the amount will be returned in full;
within a period of one to three months after concluding the contract - you will be able to return only part of the money spent, in some insurance companies it is 50% of the amount paid;
apply for a refund of the insurance after paying off the mortgage or within three months, but before the expiration of the document - you can return the funds for the remaining (unused) amount, depending on the remaining term.

In order for the borrower to have the right to return part of the cost of insurance, two circumstances must coincide:

the mortgage is paid on time;
there were no payments for insurance claims.

Insurance is usually paid in multiple payments. It usually represents the 13th payment in the annual payment schedule to the bank. Demand a refund from the insurance company of the overpaid insurance premium if you:

paid insurance several years in advance;
The mortgage was closed ahead of schedule (the principal and interest were paid, as confirmed by a certificate from the bank).

The insurance contract is valid for the entire period of validity of the loan agreement. It follows that, despite the content of the insurance contract itself, when the loan is repaid, the insurance contract terminates. That is, the borrower has the right to demand a refund of the overpayment. Before going to the insurance company, collect the following documents:

Russian passport;
a copy of the mortgage agreement;
a certificate from a credit institution confirming full early repayment;
application for early termination of the insurance contract with the return of part of the paid insurance premium;

Be mentally prepared for refusal and go to court with it. Remember that such cases are not always decided in favor of the plaintiff - the judge decides. In addition, you will have to pay legal costs.

If you pay the insurance not to the insurance company, but to the bank, it will be even more difficult to recover the overpayment. This is especially true for package insurance. Package insurance is generally an interesting thing from a marketing point of view. The bank sells it along with a low interest rate. At the same time, it is a rare borrower who bothers to consider what is more profitable - a mortgage at a higher interest rate with minimal insurance, or a low rate and a comprehensive all-inclusive package.

Most often, the first option is more profitable. In addition, it is impossible to take back from the bank part of the fully paid commission for comprehensive insurance services if the bank is against it. Sometimes, as part of promotions to attract new clients, banks include clauses in their insurance contracts on the return of part of the insurance premium in case of early repayment. Please clarify this detail before signing the loan agreement.

Many clients are faced with questions about whether borrowers are required to pay regular fees, and how to return money for mortgage insurance at VTB or Sberbank. Refund of insurance, according to law, is possible only in the following cases:

Return within a month. The amount will be returned minus the days during which the borrower used the loan money.
For a period of up to three months, the opportunity to return insurance payments is 50% of the premium paid.
Upon completion of all financial obligations. No more than 70% of the funds spent can be given back to the client.

Since 2020, legislation has provided borrowers with the right to receive back funds in court for the insurance that was imposed by the bank. However, you can apply for compensation only after the debt has been fully repaid.

VTB: apartment mortgage insurance

VTB 24 mortgage insurance is issued in the form of a comprehensive agreement. In this case, the term directly depends on the period for which the loan was issued and ranges from one year to 30 years.

Concluding an agreement is very simple. It is enough to fill out an application and provide the institution with information about previous financial transactions with real estate. This information will in any case be verified by the financial institution to ensure the veracity of the information presented in it.

VTB managers can assure the client that comprehensive insurance is mandatory, but the client, who is not savvy in this issue and in all its intricacies, most likely does not know that only real estate insurance is mandatory. Life insurance, in case of disability, against financial risks and other types of policies are voluntary and are issued additionally.

A bank employee does not have the right to force a client to buy insurance. However, today many banks conduct special trainings that teach employees how to sell additional services. Therefore, gullible borrowers cannot always resist the pressure of experienced managers and agree to pay. If the insurance turned out to be unnecessary and imposed, then there is an opportunity to return it.

READ MORE: How much does it cost to include in driver's insurance?

Just a few years ago, it was almost impossible to get money back for unnecessary insurance. When making such a request to the bank, the borrower received a categorical refusal, because no one forced him to sign the agreement. However, in 2020, the Bank of Russia, which regulates not only the financial but also the insurance market, issued a law according to which a borrower can cancel a previously issued policy within 5 days. The latest changes to the law were made in 2020, then the period was increased to 14 days.

Refusal procedure

There is one option to refuse insurance. If you contact the bank in the first two weeks after receiving the service, you can count on a positive outcome. At the VTB branch you will need to write an application for refusal of voluntary insurance. It is necessary to indicate the account details to which the money will be transferred.

Real estate insurance is a mandatory condition that VTB Bank imposes on mortgage borrowers. Without this, VTB may not approve the mortgage. But despite the fact that insurance is not free, but, on the contrary, raises the amount of monthly premiums by several percent, it provides a reliable backing for both the borrower and the bank in case of emergency situations. You can also pay for the policy separately from the mortgage.

Insurance is an integral attribute of mortgage lending. At VTB Bank (formerly VTB 24), mortgage insurance is possible under different conditions, including both a mandatory program and additional insurance options. Mandatory insurance includes insurance for the possibility of damage or loss of the purchased home; others are taken out by the borrower on a voluntary basis. This:

life insurance of the borrower, health (both the client himself and his guarantors, if any);
protection against loss of ownership of housing or its termination during the first three years after purchase (applies to mortgage refinancing and purchase of housing on the secondary market);
comprehensive program;
product "Advantage".

Important! The interest rate depends on the conclusion of the insurance contract. Typically, VTB advertising brochures indicate mortgage interest rates provided that all types of insurance are included.

If the client decides to refuse additional types of protection, the amount of the mortgage overpayment will increase by 1 percent. The mortgage calculator available on the bank’s website allows you to calculate the cost of the loan, taking into account the inclusion of all insurances.

VTB has both its own insurance company and works in partnership with other organizations. The borrower has the right to choose the company he likes from the list of accredited organizations working with the bank. It can be found by following the link.

As already mentioned, protection against loss/damage is mandatory when concluding a mortgage agreement with VTB. You cannot refuse it; this basic insurance is necessary to obtain a mortgage.

The borrower has the right to contact VTB’s own insurance company or use the services of firms approved by the financial institution.

As of today, there are 24 organizations on the list (the link to it is given above). Among them:

AlfaStrakhovanie;
InGosStrakh;
RESO-Garantiya;
Renaissance Insurance, etc.

But the bank is not limited to this list: it is permissible to propose another company for consideration, which, in the opinion of the borrower, works stably and is reliable. Bank specialists will review the proposal and make a decision.

Insurance issues are handled by VTB Holding's subsidiary, VTB Insurance. They offer several insurance products for those wishing to purchase real estate with a mortgage: both basic insurance and additional protection.

Important! If the borrower evades payment of insurance premiums, the company has the right to demand compensation for losses, including in court.

It includes insurance against:

lightning strike;
burning of housing as a result of fire;
damage due to gas explosion;
damage from natural disasters, water damage;
soil subsidence, groundwater release;
falling aircraft, their parts, and other objects onto housing;
collision with property of vehicles;
loss/damage to housing due to the actions of third parties.

As part of the comprehensive program, the risk of loss of housing is also insured against loss due to restriction of property rights or complete termination thereof (so-called title insurance). Other types of insurance included in this offer:

life and health of the mortgage client from illness and accidents;
from permanent or temporary disability/loss of ability to work due to an accident.

If an insured event stipulated by the contract occurs, the company pays compensation to the bank in an amount not exceeding the insured amount. If the obligations unfulfilled by the debtor are lower than the amount of compensation, the citizen himself receives the rest of the money.

The average cost of such insurance per year is about 1 percent of the amount covered under the contract. The price depends on:

insurance period;
the client’s age, state of health;
the number of past real estate transactions;
condition of the purchased property.

The duration of the comprehensive program is from 12 months. up to 30 years old.

Important! VTB Insurance cooperates with many Russian banks; the full list can be seen on the company’s website.

The second program is “Advantage”. It expands basic insurance (protection against damage to structural elements and loss of home). The product allows you to insure your home for the full value of it and, if an insured event occurs, will allow you to purchase real estate of a similar value.

The program applies to:

fires;
damage due to exposure to liquids, flooding of the apartment;
illegal actions of third parties resulting in damage to property;
civil liability damage caused by neighbors;
gas explosions;
terrorist attacks;
natural disasters and other circumstances, if any are specified in the policy.

The cost of the policy is individual and depends on the amount, loan terms, age and health of the borrower, and the condition of the home.

To draw up an insurance contract you will need:

identification;
loan documents;
insurance application.

You can submit your initial application on the website.

After reviewing it, the manager will contact the client to clarify the time of the visit and other details.

Basic insurance is issued directly upon receipt of a mortgage loan; additional programs can also be activated when signing an agreement or by contacting VTB insurance company/other accredited organization later.

Connecting additional programs has a number of positive features, but also has some disadvantages for the borrower.

Pros:

extended protection in the event of force majeure situations;
eliminating the need to repay debt when insured events occur (both for the borrower himself and for relatives/guarantors);
the opportunity to purchase new housing with insurance money to replace the lost one.

Minuses:

an increase in the final cost of the loan for the bank client, although in terms of the interest rate the loan becomes cheaper;
the insured event may never occur, that is, the money will actually be wasted;
limited choice of insurance companies.

That is, by taking out a package of life and health insurance, the borrower receives the following benefits: But also the main advantage is that by including insurance against death, as well as partial or complete disability, in the package, the mortgage debtor receives a reduction in the interest rate, which is also positive moment.

For example, it makes sense to insure against dismissal and theft of property.

It is useful to add temporary disability to your policy. Before signing the contract, check the terms of payment of the insurance premium.

It can be paid at once or in installments.

READ MORE: Loan secured by a car at VTB Bank

Pay attention to what program was offered to you.

It can be basic or advanced.

The first guarantees the protection of the interests of the borrower within the amount of debt.

A comprehensive policy, in addition to property insurance, provides life insurance and the risk of losses in the event of loss or limitation of property rights.

Personal insurance risks include loss of ability to work due to accidents, illness, death or disability of the borrower. Insurance against the risks of complete or partial loss of rights to real estate (title) applies only to the acquisition of secondary residential real estate and is issued for the period of possible limitation of actions (three years).

In this case, the term directly depends on the period for which the loan was issued and ranges from one year to 30 years.

Nuances

It is important to understand that banking organizations strive to maximize the security of their funds issued to the borrower. Therefore, before refusing life and health insurance for the second and subsequent years of a mortgage, you should carefully study the contract. Often, there is one unpleasant point in it. It states that if a banking organization refuses to insure life or health, it will raise the interest rate by 1-2%.

Only after the mortgage agreement has been carefully studied can a decision be made to refuse to purchase a life and health policy. Otherwise, there is a high risk of getting a mortgage interest rate that is 1-2% higher than initially expected.

Risks and insurance programs

Mortgage insurance at VTB can be mandatory or voluntary. For your convenience, we will consider the available products and consider what is required by law and what is at the discretion of the borrower.

According to the insurer, comprehensive mortgage insurance from VTB is the most profitable product that will help protect against certain risks.

As part of the comprehensive program, compensation is provided in case of:

Damage to structural elements of the purchased property.
Permanent disability resulting from disability due to an accident or serious illness.
Departure from life.
Complete loss or partial damage to property purchased on credit.
Loss of property rights.

Additionally, the insurance company offers to issue a voluntary product “Advantage for Mortgages”, the cost of which is only 1,800 rubles per year. Under the program, the insured client can be guaranteed to receive payment in the event of a fire, gas explosion, lightning strike, illegal action of third parties or a natural disaster.

Real estate insurance for a mortgage with VTB is mandatory, namely for structural elements. All other products listed are voluntary.

For military personnel

There are favorable mortgage programs for military personnel. This category of citizens can receive a mortgage, the fees for which will be paid by the state. Mortgage property insurance at VTB is paid personally by military personnel annually.

Product advantages:

favorable tariff up to 30% cheaper than the basic one;
To purchase insurance coverage, you do not need to waste time and personally visit the office, since you can apply for insurance online;
there is no need to photograph documents and send them to a company specialist, since it is enough to provide the necessary information.

When applying to a bank for a mortgage, some borrowers are interested in whether it is possible to obtain insurance from VTB only for an apartment or life. It is worth considering that, within the framework of the law, every borrower is required to insure the apartment, since it is collateral.

As for life insurance, this is a voluntary type. However, do not rush to refuse. You need to find out how much life insurance for a mortgage at VTB costs and only then make a decision. If the cost does not exceed 3,000 rubles, then it is more profitable to buy a protection form, since it will cover losses on the mortgage if an insured event occurs to you.

In accordance with the implemented strategy, the company provides protection for the subjects and objects of the contract:

Loss of life and ability to work of the borrower, which implies death or loss of legal capacity (disability). As a result, the borrower’s relatives or he himself gets the opportunity to close the mortgage loan thanks to the insurance policy.
Loss or damage to real estate that is the subject of a loan agreement. The risk package includes protection from natural disasters, fire, flooding, and illegal actions of third parties. If you purchase housing in a new home, you can insure it after registering ownership of the property.
Termination or restriction of ownership rights after the purchase of premises. This risk is insured subject to the execution of an agreement with refinancing or payment for real estate on the secondary market, when there is a danger of challenging the right of ownership.

VTB 24 Bank reduces the loan rate when the borrower takes out comprehensive insurance and pays for protection against all risks. But it is possible to conclude an agreement with insurance of one risk - loss or damage to real estate.

The rate under the contract when canceling a comprehensive insurance policy increases by 1%. This condition is mandatory when concluding a mortgage agreement.

Necessary documents for purchasing insurance at VTB

requests the following documents:

Documents for identification of borrowers and their copies;
A medical certificate indicating the absence of serious chronic diseases;
Reference papers characterizing the balance of the debt for mandatory payments (taxes, alimony);
Papers characterizing the property (extracts, certificate);
Loan agreement.

The option of providing other securities is not excluded when the number of borrowers increases or their age is not within standard limits.

1. Go to the official website using the link;

2. In the window that opens, you need to fill in: first name, last name, city, email, phone number, type and purpose of insurance, bank (VTB 24).

An operator will contact you within 30-90 minutes (depending on operating hours) and tell you the details of applying for mortgage insurance at VTB.

1. On the VTB insurance website, find the “Conclusion of a mortgage insurance agreement” section in the “Property” block;

Advantages

1. First of all, try to minimize the damage and report it to the relevant government authorities.

2. Next, call the hotline (payment according to tariff) or (toll-free call).

3. They will set up a meeting with a representative over the phone and allow them to inspect the damaged property to assess insurance payments.

You can obtain mortgage insurance from any of the following institutions. The list approved by the bank includes 19 insurance companies:

VTB insurance,
Alfa insurance;
Sogaz;
MAX;
Reso-Garantiya;
Ingosstrakh;
VSK;
Energy guarantor;
Alliance;
Surgutneftgaz;
ERGO;
Yugoria;
Zetta insurance;
Renaissance Insurance;
BET;
Liberty;
Absolute;
Rosgosstrakh;
Agreement.

When operating, these insurance companies comply with the requirements of VTB, which has maintained a partnership with them for several years. But this list has been expanded by other insurers, whose policies are accepted by the bank when concluding a mortgage agreement.

Additionally, borrowers can use the services of RSHB-Insurance, Cardiff, Adonis, Chulpan, Tinkoff.

If you decide to take out a mortgage, remember that the property must be insured.

This condition must be observed; the requirement is contained in 102-FZ.

Without a policy, no financial institution will issue a loan to purchase a home.

Insurance is important for a bank, as it hedges risks. The client also needs it, protecting him from significant expenses in the event of an unforeseen situation that results in damage or destruction of property.

In this article we will talk not only about what such a policy is, but also about how much insurance for an apartment with a mortgage in VTB 24 costs?

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If you want to find out how to solve your particular problem, please use the online consultant form on the right or call. It's fast and free!

The policy that the client receives when taking out a mortgage loan reliably protects him and his property from any troubles that arise. If the mortgage is repaid early, the bank client can return the unspent amount to his account.

Only the collateral property needs to be insured. Property rights, life and health do not need to be insured if you are not personally interested in it. But sometimes banks insist on taking out all types of insurance under pain of refusing a mortgage. It is illegal. But reviews on the Internet say that it is almost impossible to refuse them. After all, the mortgage agreement specifies sanctions that can be applied in case of refusal.

Mortgage insurance rates are determined individually. Therefore, it is impossible to name their exact value. But we can introduce you to the general conditions of concluding a contract with various insurance companies.

The cost of housing taken out on a mortgage is subject to a limit of 15 million rubles. Contributions for insurance of collateral must be made every year at a rate of 0.25% per annum. Interest is charged only on the balance of the principal debt. If the mortgage was issued for 1 million rubles, then in the first year you will need to pay 2500 rubles. As the debt is eliminated, this amount will decrease.

Life insurance accounts for 1% of the debt. If rejected, the mortgage interest rate increases by the same amount. Therefore, refusing insurance in this case is not advisable and even more profitable, since the annual insurance premium will decrease over time.

Sberbank does not offer title insurance. If you need title insurance, you will have to arrange it yourself.

VTB insurance

At VTB, when obtaining a mortgage for a home, they require comprehensive insurance (all three types of insurance). But instead of three contracts, one is drawn up. If the loan is issued in this bank, then the term of the agreement corresponds to the term of the mortgage, if in another - for 1 year or another period with the possibility of extension.

Insurance costs on average 1% of the mortgage amount in the first year and 1% of the remaining principal in subsequent years. Discounts are provided when paying for insurance for a period of 1 year or more. When switching to another insurer, no premium is paid. In case of early liquidation of mortgage debt

VSK Insurance House

Here only life/health and collateral property are insured. In the first case, the cost of insurance is about 0.55%, provided that the mortgage is issued for an amount not exceeding 4 million rubles. Otherwise, in addition to the health questionnaire, you will have to provide a medical declaration. In the second case, the cost will be approximately 0.43%.

This is one of the companies that pays a partial refund of the insurance premium in proportion to the unused term when the borrower switches to another insurer. You can receive an absolute payment if you refuse VSK services within 5 days from the date of conclusion of the transaction.

Here the rates depend on which bank you take out a mortgage from. After all, different organizations are required to pay different commissions for expanding their client base. Average insurance rates are:

Sberbank: 1% – life/health; 0.18 – deposit.
Absolut-Bank, Raiffeisenbank and VTB: ownership – 0.25%; deposit – 0.1%, health/life – up to 1%.

A full refund can be made no later than 5 days after signing the agreement. In other cases, upon termination of the contract at the initiative of the mortgager, only part of the contribution is paid.

Alliance (Rosno)

The average tariffs in the Alliance are:

0.87% – life/health;
0.16% – deposit;
0.18% – ownership.

The Alliance does not insure a mortgage taken out from Sberbank due to its lack of accreditation.

Here you can get insurance at a reduced cost:

Interior finishing of residential premises;
Civil liability to other persons arising from the use of housing;
Life and health, collateral property in order to increase the amount of payments in the event of insured events.

We invite you to familiarize yourself with: Compulsory and voluntary insurance table

Since the company’s departments in the regions are closing, you can contact it through the Central Office located in Moscow.

Rosgosstrakh

Approximate rates for mortgage insurance are shown in the table below (on the left - for men, on the right - for women).

Banks	Life and health	Mortgaged property	Ownership
Sberbank	0,3%/0,6%	0,2%	–
VTB and others	0,28%/0,56%	0,17%	0,15%

Every year the amount to pay for mortgage insurance will decrease. You can receive a partial refund if you liquidate your debt early. But 65% of the absolute amount of the premium will be deducted from her. If you wish to terminate the contract for a reason unrelated to the repayment of the mortgage, no refund will be issued.

Ingosstrakh

Here you can conclude both individual and complex agreements. Approximate tariffs are not disclosed. But we can give a comparative description for a specific example. We will consider as a borrower a man and a woman 38 years old, who do not drink, do not smoke, have no serious illnesses, and are employed. As a home - an apartment on the 5th floor, which has a history of only 3 owners. Mortgage volume – 8 million rubles. We will indicate the approximate cost for men on the left, for women on the right.

Banks	Life and health (thousand rubles)	Collateral (thousand rubles)	Ownership (thousand rubles)
Sberbank	35,5/25,2	11,2	–
VTB and others	44,4/18,1	12	16

On average, mortgage insurance for women is 30-40% cheaper than for men. At Sberbank, the contract must be renewed every year. At VTB, an agreement can be concluded for the entire term of the mortgage.

Alpha insurance

Here you can also choose individual or comprehensive insurance. Sberbank has a tariff equal to 0.18% of the mortgage loan. The contract is concluded for 1 year and is renewed annually as necessary. Only collateral property is insured, and Alfa Insurance has not been accredited for life and health.

Tariffs are not specified for VTB and other banks. Therefore, let’s return to the example from Ingosstrakh and indicate the approximate cost of insurance:

Life/health: 46.9 thousand rubles. for men and 30.5 for women.
Deposit: 9.2 thousand rubles.
Ownership – 12 thousand rubles.

An absolute or partial refund is made under the same conditions as for VSK Insurance House.

Here the borrower will receive reduced rates and an expanded base of insurance claims. You can also insure furniture, plumbing, decoration and civil liability for only 1,150 rubles. Tariffs for main types of mortgage insurance:

Life and health – 0.17%;
Collateral property – 0.1%;
Ownership – 0.08%.

Name of accredited company	Peculiarities	Company address and contact details
Ingosstrakh	It is one of the largest insurance companies in Russia. The organization's offices are located in 214 cities of the Russian Federation.	117997, Moscow, GSP-7, st. Pyatnitskaya, 12, building 2 8
Sogaz	The organization provides insurance services on favorable terms. There are more than 600 company divisions located in Russia. Thanks to the huge number of offices, the company's services are especially popular.	107045 Moscow, Ulansky lane, 26 8 800 333 0 888
Liberty insurance	It is a universal insurance company, occupying 40th place in the overall ranking of leading insurance organizations located in the Russian Federation.	196084, St. Petersburg, Moskovsky pr., 79 a, lit. A 8
AlfaInsurance	Carries out insurance activities in 270 regional representative offices of Russia. Has a high financial stability rating.	115162, Moscow, st. Shabolovka, 31 B 8 800 333 0 999, 8 495 788 0 999
VSK Insurance House	Occupies a leading position in the general insurance market. Provides more than 100 modern services under insurance programs.	121552, Moscow, st. Ostrovnaya, 4 8
Reso Guarantee	It is the largest Russian insurance network with more than 800 branches located throughout the Russian Federation.	117105, Moscow, Nagorny pr., 6 8,
Max	Has a high reputation among insurance representatives. Bears full financial responsibility for standard obligations.	115184, Moscow, st. Malaya Ordynka, 50 8(495)730-11-01
Energy guarantor	Constantly expanding the number of regional offices. The company operates on all current types of insurance.	115035, Moscow, Sadovnicheskaya embankment, 23 8
Rosgosstrakh	An insurance company operating in all regions of the Russian Federation. Provides favorable conditions for mortgage insurance.	140002, Lyubertsy, Parkovaya street, building 3 8 800 200 0 900
Renaissance insurance	The state insurance company has a high reliability rating. Branches are located throughout the Russian Federation.	115114, Moscow, Derbenevskaya embankment, 7 building 22 (4th floor) 8 800 333 8 800
Uralsib	Operates on the standard insurance market and is a member of the All-Russian Union of Insurers. It has a fairly high rating among insurance organizations.	129226, Moscow, st. Agricultural, house 16A 8

Tips – How to save money and insure your mortgage cheaper

To assess the cheapness, it is worth considering many options by contacting the offices of different companies directly. After all, sometimes insurers carry out temporary promotions to reduce the price of popular contracts that must be executed when taking out a loan for real estate. Popular organizations offering flexible terms are:

VTB - insurance that allows you to save due to the summed up payment for 3-5 years when purchasing the policy for the first time;
VSK is a loyal system for calculating premiums based on the age and gender of the borrower.

And also, many clients note the Alliance company, where it is possible to purchase a policy at a cost of 0.34% of the price of the mortgage agreement.

Today, at VTB Insurance you can purchase a contract under a special program. It implies a reduction in annual payment by 25% if paid at one time.

So, if the client decides to take out a mortgage for 15 years, when the price of the apartment is 3,000,000 rubles, then he will have to pay 91,824.48 rubles. in 5 years. If you agree to a special program, a discount of 18,744.48 rubles is given. All that remains is to pay 73,080 rubles. at one time.

When choosing a company, you should pay attention to the following points:

There are no pitfalls, for example, the document states that the applicant will not be able to terminate the insurance contract or will have to pay a high commission;
Elimination of some risk situations;
Compare the pricing policy for calculations and protection conditions in several companies.

When weighing the safety, reliability and availability of an insurance company, in most cases a person makes the right choice for himself. You can always purchase a policy on favorable terms, but first you should familiarize yourself with the offers of several insurers.

While the policy is in effect, the person stops making payments. What happens then? The insurance company begins sending notifications about the need for payment.

If the citizen continues to refuse to pay the fees, information about this is sent to the banking organization, which will also begin to harass the client in various ways - SMS messages, letters, calls. In the worst case scenario, the case goes to court.

You can significantly reduce the cost of your policy if you use a special insurance program. It involves a one-time premium payment for 3 or 5 years.

To connect to the program, wait for a positive decision on your mortgage. When it is accepted, contact a bank employee. Pay the full cost of insurance, the policy will cost 25% less.

There is no one insurance company that would be more profitable for everyone to insure themselves with. Different companies have different approaches to calculating risks. Therefore, their tariff policies are also different. And if, according to your neighbor or adviser on an online forum, he managed to get cheap insurance from a certain company, this does not mean that it will also be profitable for you to get insurance there.

The following tips will help you save on protecting property interests when applying for a mortgage:

Don't sign up for insurance at the bank. Typically, when issuing a mortgage, a banking organization offers to insure itself with a certain company that it trusts. But according to the legislation of the Russian Federation, the bank is obliged to accept insurance from any accredited insurance company. But the borrower does not know his rights well, so he often agrees to conclude a collective deal right in the office. However, the insurance premium in this case may be 2-3 times higher than if the insurance was taken out in another company. The markup is formed in connection with the commission that the bank requests from the insurer for attracting a new client.
Let the main borrower be a female person. The cost of insurance for women is lower than for men. If you have already signed up a male person as the main mortgager, you can try to replay the situation. However, be prepared for the fact that the bank will not cooperate.
Take advantage of the capabilities of the Transition program. Insurance is issued for a limited period. If the mortgage has not been paid during this time, the contract is extended. But you can choose another insurance company for renewal. When switching, many companies offer discounts of 10-15%. If you express a desire to use the services of a competitor, the former company may also offer you a reduction in the cost of insurance. But in the case of Sberbank this is impossible.
Get a discount if you are already a client of the insurance company. Insurers offer discounts to regular customers. If you already have your home or car insured somewhere, try insuring your mortgage there. Tell them that you already have a policy with this company. When applying for a mortgage at Sberbank, this advice does not apply.
Get a discount if you are an employee of a corporation that is a client of the insurance company. Large companies provide voluntary health insurance to their employees. If you are one of these workers, you may qualify for a discount on life insurance for your mortgage.

We invite you to read: Is it possible to refuse insurance for a family mortgage?

By choosing the most suitable insurer, you can save a significant amount of money. But make sure that the reduction in the cost of insurance does not occur due to the exclusion of insured events from the contract.

If you insure yourself only against accidents, then in the event of death or disability due to illness, no one will pay the insurance. Despite the low cost, such transactions should be avoided in order to protect yourself from all possible risks.