What is property insurance for individuals, conditions and price of insurance

What it is?

Apartment insurance is a contract for the protection of citizens' property, drawn up at the initiative of the home owner or third parties to minimize risks during the operation of a residential property.

Both the owner of the apartment and any of his friends or relatives can buy insurance.

In the US and Europe, 88% of the working population uses property insurance services. In Russia, the number of policyholders is several times smaller: only 1/10 of Russians use the services of insurance companies to protect property.

At the same time, the cost of the policy in the Russian Federation is 2/3 cheaper than offers from foreign companies (we discuss what factors influence the cost of insurance in this material, and you will find out how much a policy will cost to protect an apartment from various incidents here).

Pros and cons of this action

55% of Russians do not insure their homes because they do not trust insurance companies. This is due to the negative experience of relatives or friends who purchased insurance policies, but the company refused to pay them when an insured event occurred.

Those who also refuse to purchase a policy justify their decision by the high cost of services.

Large insurance companies of the Russian Federation (for example, Ingosstrakh, Soglasie, Rosgosstrakh), despite the low level of population involvement (less than 15%), always make a profit.

Supporters of policies insure an apartment, even if the cost of services increases by 20-30% (this is evidenced by data from insurance companies).

We consider the question of whether it is worth insuring an apartment in more detail here.

Advantages of taking out property insurance coverage

The choice of thousands of policyholders in the Russian Federation is not random:

• Protecting your apartment gives you a feeling of reliability and comfort.
• Policy buyers understand the responsibility for the safety of property.
• Clients are protected from unforeseen circumstances.
• Financial literacy increases.
• Relationships and understanding with neighbors improve. The policy guarantees that in the event of an insured event, property owners will be able to pay their neighbors without conflicts or litigation.

Minuses

But home insurance also has its downsides:

• High cost of payment for insurance coverage of over 3 million rubles and the number of risks from 5. Not every Russian can afford to purchase a policy for 10-15 thousand rubles.
• No 100% guarantee of payments. No insurer can say with complete confidence that the client will receive funds in the event of an insured event. If the beneficiary is partially at fault for causing the damage, payment of funds will be denied.
• Unreliability of some service providers. Unaccredited companies, deprived of a license, “lure” buyers with attractive amounts of payments at a very low insurance premium (up to 5 thousand rubles). As a result, buyers purchase a policy from a bankrupt company or a third-party organization that is not directly related to insurance.

Real estate insurance: types, conditions and tariffs

Transactions with real estate, whether buying or selling, donating or exchanging, involve serious risks.
And since real estate costs a lot of money, which many families have to accumulate over the years, it makes sense to insure yourself in the truest sense of the word. That is, we are talking about insuring real estate against the risks of loss and damage. If you want to find out how to solve your particular problem, please contact the online consultant form on the right. It's fast and free! Or call us at :

+7 Moscow, Moscow region

+7 St. Petersburg, Leningrad region

8 Federal number (free call for all regions of Russia)!

You can easily lose or damage a purchased house or apartment. Fire from faulty wiring, domestic gas explosion, earthquakes, recognition of a real estate transaction as unlawful, etc. For any of these reasons, you can be left homeless. But if they become insured events, then you can receive compensation from the insurance company. Just think about this before it’s time to come to the insurer and sign a corresponding agreement with him.

Types of real estate insurance

It is impossible to foresee all unfavorable circumstances. It is the insurance of real estate that is the best and most effective method of warning owners, protecting them from unforeseen expenses and unpleasant surprises. There are the following types of real estate insurance:

• title insurance;
• insurance against damage caused by repairs;
• property loss insurance;
• civil liability insurance.

Title insurance

Title insurance is recommended if you are faced with purchasing real estate on the secondary market. It is in this case that there is a high risk that any of your transactions for the alienation of the property you have acquired will be canceled by a court decision as illegal. In this case, all subsequent transactions with this real estate will also be declared invalid. You will have to return the home, but it is not at all necessary that you will receive the money paid for it back.

To prevent this, or rather, to receive compensation if such a situation arises, the insurance company draws up a title insurance contract. In the event of an insured event, the insurer compensates for the losses of the insured. But before concluding such an agreement, insurance company specialists carefully check all transactions with the property. If they determine that the risk of an insured event is very high, then the amount of the monthly insurance payment will be increased, or the company will refuse to sign the contract altogether.

Insurance against damage caused by repairs

Another type of insurance is associated with the risks of damage to expensive repairs already made. This type is especially relevant for apartment buildings. The fact that you have made repairs in your apartment is not a reason for your neighbors to behave more prudently and take all possible measures to prevent fires, floods, etc. Most often, one flood is enough to ruin painted walls or wallpaper, a suspended ceiling, or expensive parquet flooring. It is possible to contact the building management, call experts to assess the damage caused and, based on the documents received, file a lawsuit, calling the unlucky neighbors to account.

The court may even admit that you are right, but it turns out that the defendant’s income allows him to pay 500 rubles in compensation every month. And if the damage caused was 100-200 thousand rubles, then how long do you have to wait for the defendant to pay the full amount? A rough estimate shows that the waiting period will be 17-35 years. But repairs need to be done now, and money for this is also needed now. In this case, insurance to insure damage caused by repairs is better than contacting the house management, experts and the court.

Property Loss Insurance

The third type of insurance can be applied in all cases, but not for old houses. Moreover, for those properties that are recognized as being in disrepair, this insurance will not be provided. It’s a different matter for new buildings, for which companies do not refuse to insure, but in which partial or complete destruction of the building is quite possible. It often happens that poorly executed construction work and non-compliance of the building materials used with the design and estimate documentation become the cause of cracks in buildings, collapse of balconies, stairwells, etc.

It is possible (and necessary) in such cases to sue the developer. But, firstly, it is not always possible to find it. And secondly, the trial can drag on for years. The best way out of this situation would be a property loss insurance contract. If an insured event occurs, it can be used to cover financial losses due to partial or complete destruction of the building.

Civil liability insurance

The fourth type of property insurance is that you now proactively insure your civil liability. After all, not only you can be flooded, but a fire can occur due to your negligence or the carelessness of one of your family members. Not only will you personally suffer financial losses in the form of damaged interiors of your own home, but you will also have to restore the same losses of your neighbors.

This type of insurance is especially worth considering if one of the neighbors below has made expensive repairs. A banal flood due to an open tap in your apartment or a damaged hose from a washing machine or a burst pipe will cause damage to them for a round sum, which will have to be paid to you. But it will be better if these costs are covered by payments under a civil liability insurance contract.

Conditions and tariffs for real estate insurance

It should be noted that when drawing up a mortgage agreement, banks require the borrower to insure the property being purchased using one type of insurance or several at the same time. In this case, it seems beneficial for the borrower to use the comprehensive insurance service, because this reduces the financial burden and the total monthly payment will be lower.

You need to draw up an insurance contract with a trusted insurer. Making sure you are dealing with the right insurance company is simple. Go online and look at reviews about it and how insurance claims are paid out. Pay special attention to negative reviews. Please note that some of them may be unfounded.

The cost of an insurance policy depends directly on two factors:

• validity period of the insurance contract;
• how long the insured object was in operation;
• degree of deterioration of real estate;
• where the insurance object is located;
• the cost of housing that is insured.

But even here you need to take into account that rates for real estate insurance will fluctuate within some limits. In addition to these two factors, the cost of the policy is affected by the likelihood of an insured event occurring. Giving an example of title insurance, it was indicated that if there is a high risk, the company may refuse a request to issue a policy.

In general, you need to be prepared for the following tariffs that apply in Russia.

When insuring residential buildings, the policy costs from 0.5%, and when insuring suburban real estate - from 0.3% to 1.4% of the cost. To insure the interior lining of residential and industrial premises, you will have to pay from 0.4% to 1.4%.

As for specific companies in the insurance market, full insurance in ROSGOSSTRAKH is offered at a rate of 2.8%, and insuring a house under one of the types will cost 0.9-1.5%.

Full insurance from Alfa Insurance will cost from 3.5%, and insuring valuable property will cost from 0.015%. This company can insure a building at an insurance rate of 0.07%.

When calculating the monthly cost, the insurer is based on the market or estimated value of the insurance object. In general, it is worth noting that participants in the insurance market offer similar rates and services.

Real estate insurance against risks of loss and damage

When taking out a mortgage loan for a home, be prepared that you will have to sign a compulsory insurance agreement. According to the rules of real estate insurance, each lender can determine different types of insurance that are mandatory when applying for a mortgage loan . In most cases, the bank protects its interests, therefore obliges it to insure real estate against the risks of loss and damage. That is, if the collateral is damaged or destroyed due to any accidents or careless behavior of someone, the insurer will be forced to compensate the amount of damage.

If you insure your property against the risks of loss and damage as part of compulsory property insurance, the bank will indicate to you the amount of the insurance policy. Failure to comply with this condition will result in refusal to issue a mortgage loan.

If you want to find out how to solve your specific problem, please contact the online consultant form on the right. It's fast and free! Or call us at :

+7 Moscow, Moscow region

+7 St. Petersburg, Leningrad region

8 Federal number (free call for all regions of Russia)!

Types of policies

Depending on the type of purchase, there are:

1. classic policy issued at the insurer's office;
2. online document.

They differ in the method of registration, set of certificates and cost.

According to the target characteristics of insurance, there may be:

1. voluntary;
2. related to the lending agreement (in a mortgage transaction).

By payment type:

1. one-time payment;
2. installment policies.

By choosing parameters:

1. fixed, when types of services are included in the price, without the possibility of adjustment (generated protection package);
2. floating, with independent selection of necessary functions.

If I want to secure my home, whose services should I choose?

The buyer can purchase a policy either from a large supplier or from a private seller. Most Russians prefer large insurance companies that have a license and positive reviews.

Purchasing insurance from a dubious organization carries financial and intangible risks. In the event of an insured event, such sellers may refuse to pay without reasoned reasons or justification.

Often there are fly-by-night companies whose main goal is to receive funds from the buyer, without providing services and permission to carry out activities.

We have prepared and provided a rating of companies that provide apartment insurance services in a separate material.

How to take out an insurance policy for property

Before contacting a property insurer, you need to find out what types of insurance for movable and immovable property of individuals and under what conditions are offered by insurance companies.

Currently, to insure property, you can do the following:

• visit the insurer's office;
• apply for a policy on the company’s website.

The first method implies that the policyholder will receive explanations about the features of certain insurance programs. When working via the Internet, a citizen saves significant time, but must be confident in his choice.

For IFL insurance, you need to indicate the main characteristics of the object, the desired terms of the contract and other conditions, in accordance with the insurance rules.

What documents are needed

When concluding a contract, you must present documents confirming your identity, as well as materials on the object (title, valuation), such as:

• passport;
• extract from the real estate register;
• expert assessment of valuable items.

Attention! It is not necessary to be the owner; often the property is insured by its tenants. To apply for a policy, you will need to fill out an application for insurance, pay a premium and present a receipt for payment.

Cost of insurance

When insuring valuable property, real estate or other property, the cost of insurance is calculated.

Various factors may be used to determine the price, such as:

• property value;
• the condition of the property and its characteristics, for example, the material of walls, ceilings, year of construction, and so on;
• the likelihood of risks, for example, the number of accidents in the previous period when concluding CASCO, or the number of payments made for civil liability;
• type of insurance (duration, number of insurance payments taken into account);
• statistical data (percentage of theft of a specific car brand, number of fires in a given category of housing).

Related article: Features of smartphone insurance: is insurance required and how to insure the device
Typically, such complex calculations are made by the insurance company, and the policyholder is informed of the final rates for each insurance product. When several contracts are concluded simultaneously, preferential conditions at reduced rates are possible.

For most typical cases, a calculator is provided on company websites that allows you to independently calculate how much an insurance policy will cost.

Insurance risks

Apartment insurance includes several protection options:

1. Decoration inside the apartment. In case of damage and flooding, as well as fire and other unforeseen circumstances, the buyer receives compensation from the insurance company. Find more information about home insurance against unpredictable elements here.
2. Movable property. These are all things, personal, sports, except for jewelry and fur items, as well as all equipment in the house, including furniture.
3. Responsibility to other residents. Even if the client lives in a wooden house or “Stalinka”, in the event of flooding, gas leaks, lightning strikes, etc., the beneficiary receives funds to resolve the housing issue with neighbors.

Types of packages and comprehensive services from leading Russian companies

When buying apartment insurance, clients should focus on the reliability of the supplier, the availability of a license and the terms of the contract offered by the company.

Conditions for Russian companies - leaders in this field

When choosing an individual package, the policy buyer must decide which services to insure. This allows you to adjust the cost of the policy and the amount of insurance coverage.

Distinctive features of box insurance

In the early stages of application, packaged products were very different from standard programs - since it was an untested novelty, insurers were hesitant to take on greater responsibility.

Differences manifested themselves in all sorts of exceptions from insurance cases, the establishment of sublimits , etc.

At this stage of using express insurance, almost all restrictions have been removed, and the wide variety of package conditions makes it even more attractive than the classic program.

The main characteristic of box insurance is the maximum standardization of the policies sold.

That is, the insurer does not set itself the goal of finding an individual approach to each client and developing contract terms that are suitable specifically for him.

The policy is designed in such a way as to satisfy the needs as much as possible while covering a wide range of potential clients.

Simplicity of registration and lack of requirements for a package of documents may seem like ideal conditions for fraudulent clients.

Since there is no assessment of the value of the property, the client can declare any amount , even several times higher than the real cost of the property (for example, not 20 thousand dollars, but 200 thousand).

However, if an insured event occurs, such a client will not receive anything - according to the terms of the contract, the provision of false information is grounds for its termination.

You may be interested in insurance of movable property in an apartment, how to properly issue a policy and what is best to pay attention to when drawing up a contract.

Or read HERE about making insurance payments and the documents required for this.

Instructions for applying for a policy

Insurance buyers have the opportunity to obtain a policy in 2 ways: in the office or via the Internet.

Purchasing apartment protection from an insurance company

To register at the office, the client must take the following documents:

• Passport. If the purchase involves registration in favor of a third party, it is advisable to have a copy or data of the homeowner’s document with you.
• Information about the apartment. To make the task easier for the manager, it is recommended to take a property valuation document. They contain all the data about the residential property, including the infrastructure of the area and information about the developer.

The registration process takes 15-45 minutes.

1. The manager helps the client select an insurance protection package of interest, calculates the cost and coverage in the event of an insured event.
2. The client and the insurance agent fill out the information. It is recommended to check the contract for typos, errors in the owner’s name, or the address of the residential property. This data may affect the payment: if the information is not up to date, the policy is considered invalid.
3. The buyer reads and signs the contract and makes payment.
   If the cost of the policy is higher than the client expected, the company may offer payment in installments. But this may increase the price of insurance.

   It is more profitable to purchase apartment insurance online. The time to fill out is reduced to 15 minutes, a minimum of documents is required.

   The cost of online policies is up to 30% lower than issuing a similar service in the office.

After purchasing a policy, the client must check whether the insurance requires activation.

In Alfastrakhovanie or Sberbank Insurance, clients must activate the service in order to receive an insurance premium. Without activation, the service may be provided not to the beneficiary, but to the insurance buyer, or the policy will be “expired.” Activation should be performed within the time period specified by the company: usually 14-30 days after purchasing the service.

In special publications, our experts provide ratings of the most reliable insurance companies, and also talk about what title insurance is.

Online apartment insurance: instructions

When applying for a policy via the Internet, the policyholder enters all the data independently.

Companies have optimized the process of purchasing a policy for clients:

• Reduced service time. The buyer determines the parameters without the participation of an insurance agent and enters the policy data himself. With fast character typing and a pre-selected package, registration time does not take more than 5 minutes.
• Reduced the cost. An online policy is “more economical”: the cost of services on the website is 10-30% cheaper.
• Equated an electronic document to a paper medium. It is not necessary to print the insurance: a payment receipt in electronic form indicates the presence of protection on a par with a “paper” copy.

The process of applying for an online policy is simple:

1. The buyer chooses a company, goes to the website and selects a product.
2. Fills in information about yourself and the beneficiary (if he is not the owner of the property), the property.
3. Calculates and adjusts types of risks, policy cost and term.
4. Pays for the purchase and (if necessary) activates the policy.

We talk in detail about how to get apartment insurance and what methods this can be done here.

Home insurance allows the owner not to worry about the safety of property. You can purchase a policy without leaving your home and choose the optimal insurance conditions. Whether it is necessary to insure an apartment if there are no conditions stipulated by law, you decide for yourself.

The most important tips

Before choosing a bank where you will receive a mortgage loan, and an insurance company, it is advisable to study the terms of the mortgage loan and the requirements for the policy being issued. The requirements depend on the specific policies of the banking organization, so the list of required policies varies.

The current legislation of the Russian Federation determines that insurance of a mortgaged apartment is mandatory. This aspect determines the level of protection of financial and credit organizations.

However, many banks have additional requirements regarding protection:

• housing must be insured against common risk events that may negatively affect its condition;
• the borrower’s ability to work, and even better, his life insurance;
• title insurance, which is one of the most necessary due to frequent fraudulent litigation.

Additional requirements for borrowers are determined individually, because the main task is to protect the interests of the bank. Moreover, in many situations concessions are allowed, because when purchasing an apartment in a new building, it is not necessary to insure the risk of loss of property rights, since the purchase of residential real estate on the primary market eliminates almost all risks.

Some banks require title policies that will be valid for the entire period of the mortgage loan. Other organizations only allow documents to be filed for three years, which is considered the statute of limitations for invalid real estate transactions.

Sometimes citizens may worry about their protection and insure their collateral housing on their own. Similar situations occur if an existing apartment is used as collateral. In order to eliminate the requirement to issue a new policy, it is advisable to find a bank whose employees are willing to take into account the current insurance. A positive resolution of the issue becomes possible even if the insurance company is not considered a partner of the bank that issued the mortgage loan.