Is insurance required when getting a mortgage at VTB 24?

Housing lending is always a risk for the bank and the borrower. Over the years, the financial well-being of the mortgage holder may be shaken, and the apartment may be damaged as a result of a natural disaster, fire, and so on. To guarantee the preservation of the liquidity of real estate, loan repayment, mortgage requires the registration of insurance. How much will it cost? Is it a must buy? Under what conditions does VTB provide mortgage insurance ? What will the refusal entail?

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:

1. Insurance calculation.
2. Annual payments.
3. General condition of the property at disposal.
4. Valuation of an apartment or house purchased with this loan.
5. Age and general health of the organization's client.
6. 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.

The cost of insurance in each case will not have a fixed amount.

A bank, when issuing a mortgage loan, does not have the right to point the subject to a specific company. Those. the latter decides for himself where to insure his life and health. These are two main conditions. In such cases, it is recommended to contact larger institutions, because...

Good afternoon. I have a loan agreement for a mortgage in Moscow. Please note that the next comprehensive mortgage insurance premium has been paid.

Also signed additionally. Agreement.

Sincerely, Mortgage Lending Support Group of the Customer Service Department of VTB24 Bank (CJSC) 8-800-700-24-24 (*5). That is, looking at the formula, the insurance amount is maximum in the first payment and minimum at the beginning of the last year of payments.

An example of calculating comprehensive mortgage insurance.

In addition, the conditions offered within each of the VTB 24 mortgage programs are variable: the borrower can choose not only the loan term and the size of the down payment, but also the type of interest rate, the period for fixing it (for a loan with combined rates), as well as insurance conditions. All these parameters will affect the final amount of the overpayment. An application for a VTB 24 mortgage can be submitted from the official website of the credit institution.

The field is required % per annum Payment type. 1st payment is interest only. Loan issue date: The field must have a numeric value.

The field is required. The field must have a date value in the format dd.mm.

yyyy (4 digits of the year) Take into account weekends Payment on the last day of the month Account for early repayment on the payment date Payment Only interest after early payment (Sberbank) Annuity on the original debt when % changes Calculation of interest per month as in Raiffeisenbank The calculator is designed to calculate apartment mortgage insurance .

according to the documents; The bank also provides “Mortgage Maternity Capital” and “Mortgage Housing Certificate” loans with the opportunity to use government assistance when paying the down payment, while the remaining conditions of these loans correspond to the conditions of the “Resale Housing” and “Apartment in a New Building” programs.

In addition, VTB 24 also has mortgage loans with individual

Insurance is offered not only by VTB 24, but also by other banks. At the same time, this service makes sense, since it is difficult to say what the borrower’s situation will be in the coming years.

In case of loss of job, disability, etc., the borrower may lose the ability to repay the loan.

Then it will be possible to use this agreement, which will pay off the debt partially or completely. Many borrowers are confident.

The program is designed for purchasing real estate on the secondary real estate market.

It’s nice that the rate under the program is fixed and does not depend on the loan term and the amount of the down payment.

Salary owners. Application Calculation Mortgage program from VTB24 with government subsidies!

Designed for the purchase of properties on the primary real estate market (new buildings). The loan currency is only Russian rubles.

The law states that life insurance is a voluntary choice of the borrower. It follows that insurance is optional. Unfortunately, the practice of obtaining a loan differs from what one would expect based on the law.

In practice, it turns out that banks force their clients to voluntarily and compulsorily take out loan insurance.

The innovation of 06/01/2018 protects clients, as it allows you to refuse imposed insurance if you manage to do this within the prescribed period.

Thus, if the balance of the mortgage debt decreases, the upcoming insurance premium decreases. The first insurance payment must be made immediately after purchasing the property with a mortgage.

Every bank requires this. You insure life and health, the risk of loss of property and the risk of loss of title in favor of the bank. This means that if an insured event occurs, the bank will receive the money and it will be able to pay off your debt for you.

What insurance do banks offer?

Over the past two years, the mortgage loan market has been at a stage of successful development. The unstable exchange rate and exchange rate of the Russian ruble, the increasing frequency of revocations of banking licenses and other aspects of the impact on the economic situation in the country force citizens to purchase housing on credit and consider this step as the most successful and stable form of preserving capital.

Mortgage insurance is a necessary condition for bank lending for the purchase of real estate. With its help, banking institutions seek to protect themselves from the possibility of financial risks. Insurance protects the interests of not only the lender, as the recipient of the amount in the event of an insured event, but also the borrower, from cases that do not allow the mortgage loan to be repaid to the bank.

According to the legislation of the Russian Federation, the loaned object is subject to compulsory insurance. In most cases, banks ask for additional insurance for the life and health of the borrower, the title of the apartment, the collateral and liability for the fulfillment of obligations under the mortgage agreement.

Today, the most popular new product is comprehensive insurance, which combines all of the above types.

VTB apartment mortgage insurance cost - calculator

You can calculate the cost of a mortgage taking into account the policy using an online calculator. The cost of insurance is influenced by many factors. When calculating the amount, you must take into account:

• annual loan rate;
• loan amount;
• lending period;
• condition of the insurance object;
• the result of a professional real estate appraisal;
• age and health status of the borrower;
• belay width.

To clarify the total amount, you should contact a VTB branch, where bank employees will help determine the approximate amount of the annual contribution. If we give an average value, then it rarely exceeds 1.5% of the mortgage amount, and in the case of comprehensive insurance - 0.7%.

Quite often, the amount of annual payments does not exceed 1%. If the client takes out a comprehensive option, the cost of insuring an apartment according to the VTB 24 mortgage calculator will average 0.7% of the total insurance amount. The cost of the next installment under the policy will directly depend on the price at which the mortgaged property is sold and how much debt remains to be paid.

If you don’t pay mortgage insurance, what will VTB 24 be like?

Protection against the risk of loss and damage to residential premises is strictly mandatory. You need to know that in the process of drawing up a document relating only to loss or damage, the rate may be slightly increased. An important point is the fact that if you do not pay for mortgage insurance at VTB, the loan funds and the purchased property will be subject to a certain risk.

At the same time as making mandatory payments, it is worth noting the following rules that must be taken into account so that the service is performed in full compliance with legal requirements. Here are the most basic of them:

1. Any company on the list of partners of the institution can act as an insurer.
2. The client has every right to invite his intermediary company to protect the property on loan.
3. Among the main items of standard insurance, there are four main types of risk.
4. As soon as this or that event occurs, the policyholder will have to notify the government agency and the official insurer.

In this case, a special statement is written regarding the occurrence of a particular case. Such a request must include the following information:

• Address and date of the situation;
• Reasons for what happened;
• Important digital parameters.

Over the course of several days, a company employee must review the situation and give a special response. After completing all the small details and following the formalities, an official insurance expert must arrive at the required address to assess everything that happened.

The required cash payments for mortgage insurance at VTB 24 can only be received after providing a special certificate at the branch. This can be cash or a transfer to a bank card. It is worth understanding that the amount of compensation directly depends on the established tariffs, on the rate for the type of insurance, and on the amount of the required amount of compensation.

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.

Step-by-step instruction

You can take out mortgage insurance for your apartment with VTB as follows::

1. Contact VTB 24 Bank. Fill out an application for a mortgage loan. The questionnaire has 10 pages, 6 of them are the main part. The document can be downloaded in advance on the bank’s website.
2. Select one of the insurance companies from the list provided by a VTB 24 employee.
3. Check out our insurance offers. Choose a suitable policy. This could be insurance for military mortgages, as well as a comprehensive product.
4. Select a payment method for insurance. The amount can be paid at once or in installments.
5. Prepare a package of documents in advance and hand it over to the bank employee. VTB 24 employees will check the purity of the transaction.
6. Specialists will make calculations and announce the cost of the policy.

When collaborating with other organizations, payment options must be checked with company representatives.

Typically, the cost of insuring an apartment under a VTB 24 mortgage does not exceed 1%.

You can fill out the form by hand or on a computer.

In the application form that the client submits to the bank, he indicates personal data, provides information about the apartment, whether there are loans from other banks.

The client also transmits information about employment and availability of assets . The latter include vehicles, funds in accounts, and real estate.

The borrower indicates the level of education and enters information about the institution from which he graduated.

He then selects a payment period and insurance package. It can be complete, or the package will only include mandatory risks.

Where is it cheaper?

A modern developer, who is an official partner of a financial organization, bears a certain responsibility and coordinates all his work and tariffs with each other. In all cases, without exception, the list of insurance rates directly depends on the rates established by current bank lending, which is confirmed by numerous reviews.

If you need to find the most profitable solution for drawing up a contract, it is worth studying the proposals of all companies that work closely with the constructor. Among the most popular companies that fully comply with the requirements and provide benefits, we can note such organizations as the RESO department, SOGAZ, VTB Insurance, as well as the bank’s partner - Rosgosstrakh.

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.

Where to get insurance

When you come to any bank for

mortgage loan processing

, you are right there

will offer a company

, which can insure you and your property. During their activities, credit institutions establish relationships with insurers, and some themselves are the founders of such institutions.

In the first case, the bank has its own considerable percentage of the insurance amount, in the second, all the profit goes to the bank. We can conclude that the lending institution is interested in obtaining insurance on the spot. But is this really beneficial for his client?

Of course, not always. Counterparty companies must transfer a percentage to the bank for each client. Naturally, they do this not at their own expense, but by increasing insurance rates for the policyholder. Therefore, if desired, the client has the right to find another insurer, at least in order to compare the offered conditions.

But we must keep in mind that the search for the “ideal” insurance company, on the one hand, can lead to saving money, and on the other, to wasting time. In addition, when searching on your own, there is always a risk of stumbling upon scammers.

Documents for registration

To obtain insurance, a VTB client must contact one of the accredited insurance companies. A complete list of them can be found on the official VTB website. He must have the following documents with him:

• Russian passport;
• a certificate confirming the cost of housing;
• a certificate confirming ownership of the property;
• certificate of absence of debt for utility services;
• health certificate (for life and health insurance).

The borrower must also write a corresponding application, taking into account the type of insurance and the tariff he has chosen. He must also fill out a VTB form, in which he should indicate his address, telephone number and other contacts.

To conclude an agreement, you must provide the institution with several statements:

• for property insurance;
• comprehensive security of property;
• for the safety of life.

For the Advantage product, you must write an application for life and disability, title and liability insurance.

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:

1. Availability of a license.
2. Work on the market for more than 3 years.
3. 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 agreement is drawn up when the borrower fills out the application. It should be accompanied by papers relating to both the borrower himself and the property he is going to buy with a mortgage.

The list is as follows:

1. 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.
2. Medical certificate about the client's health. It is required if personal insurance of the borrower is planned.
3. A document that confirms ownership of the apartment.
4. A certificate from the Federal Tax Service stating that there is no tax debt. Certificate of absence of debts on utility bills.
5. Estimation of the cost of the apartment.

The insurance company has the right to check the transaction, so the client may be asked for additional documents.

For example, an extract from the house register.

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

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.

Online application for mortgage insurance

On the official website you can leave an online application to obtain mortgage insurance from VTB, follow the steps:

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.

Step-by-step process of purchasing an insurance policy

The primary step towards purchasing an insurance document is to review the application, which is submitted electronically or during a personal visit to the branch. To send via the Internet, follow the steps:

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

2. Click on the “Application” item and download the document “Comprehensive Mortgage Insurance Application”;

3. Download the papers to your PC (or print) and enter (print) personal data;

4. Send the form to a VTB employee, whose email address can be found via the “Employee” link in the same paragraph (Block for concluding contracts).

During the review process, the insurer’s employee will contact the client and make an appointment, notifying him of the package of necessary documents. First, he will request information about the property in order to carry out the procedure for confirming the veracity of the transaction when purchasing real estate. Subsequently, payment for the policy is made.

Reflection of conditions in the agreement with the bank

Insurance is, one might say, a guarantee to the bank that the loan will be repaid regardless of the circumstances. So, if the client is unable to make payments as a result of an accident, injury or illness, then the insurance company will cover all costs.

According to current Russian legislation, the borrower is obliged to insure the purchased property against accidents leading to its severe destruction or complete destruction. The object can be an apartment in a new building, an object from the secondary real estate market, a private house, real estate in shared ownership, or a plot for construction.

If desired, you can take out comprehensive insurance, which includes the following types of insurance:

• Health and life. If the cost of an apartment is several million, VTB will offer to insure the client’s life. In this case, insured events are considered to be the death of the borrower due to illness or accident and loss of ability to work. At the same time, at the time of the incident he should not be under the influence of alcoholic beverages or drugs.
• Failure to fulfill assumed financial obligations. If the mortgage client does not repay the loan, then VTB sells the property and repays the debt with the funds received. But if this amount is not enough, the insurance company pays the difference.
• Ownership. This is a title type of insurance that provides for VTB to pay the remaining amount of the debt if the borrower has lost ownership of the mortgaged home or it has become limited.

Insurance companies accredited by VTB Bank can act as insurers. An insurance company and a financial institution are partners with each other. Therefore, they coordinate their work and any actions. For example, the cost of the policy directly depends on the mortgage interest rate. VTB values ​​​​its reputation, therefore it cooperates exclusively with reliable and proven companies.

The agreement is drawn up in writing in one of the bank’s departments. The document stipulates the minimum list of risks that the policy covers. This list cannot be shortened, it can only be supplemented. It also indicates the details of the parties, their obligations and the cost of services.

As a rule, the policy is valid for one year. During this period, the client can terminate the agreement early. He can also change the company that provides this type of service. After a year, the policy can be renewed.

Down payment from 15%

Advantages and disadvantages

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How much does apartment insurance cost for a mortgage with VTB 24?

The policy contains the following three items:

1. Title Insurance. It is necessary in order to protect the rights to real estate acquired with a mortgage. If the heir of the previous owner challenges the rights of the new owner, the insurer will pay compensation to the bank client.
2. Real estate protection. If the property is damaged due to fire or flooding, all costs associated with repairing the property will be borne by the insurer. It is possible that the property will be damaged beyond repair. In this case, the insurance company will pay off the entire mortgage loan for the borrower. In this case, the debt will be written off, because the bank will receive its money back.
3. Life insurance, it effectively protects the interests of the borrower. The policy guarantees that the insurance company will pay the loan if the borrower dies, is injured, or becomes seriously ill.

Purchasing insurance is mandatory due to the fact that taking out a mortgage loan is associated with great risks.

This is not only the safety of the collateral, but also the health of the bank client.

If the client wishes, other risks can be included in the contract.

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. 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. This is title insurance, damage to structural elements of the property.

A bank client, when applying for a mortgage loan, can choose “Advantage for a mortgage.” This product allows you to create a reserve that covers the full cost of the apartment.

If an incident occurs, the client will not lose the invested funds, he will be able to purchase similar real estate.

Such a policy will reliably protect the interests of the borrower in the following situations:

in case of a gas explosion;
• fire and exposure to liquids;
• theft or intentional damage to the apartment by third parties, as well as other illegal actions;
• terrorist acts;
• flood, hurricane or other natural disasters;
• other emergency situations specified in the policy;
• damage caused to neighbors.

You can apply for insurance online.

The main ones include the following:

1. The cost of the apartment, its location.
2. Loan size.
3. The amount that the borrower plans to pay upon purchase.
4. Condition of the building. The material from which it was built.
5. The number of risks that are planned to be included in the policy. The more there are, the more expensive the insurance will be.

For example, a client is going to buy an apartment, the cost of which is 5 million rubles. The loan term is 25 years. It is planned that a mortgage loan in the amount of 3 million rubles will be taken out. The insurance premium is 2,000 rubles per year, and with a one-time payment you will have to pay 50 thousand rubles.

This is an approximate calculation that was made based on general statistics.

In reality, the premium is calculated individually, and many factors are taken into account.

The cost of insuring a VTB mortgage apartment will be calculated by a bank employee or an insurance company specialist.

VTB 24 property insurance calculator

To calculate the cost of an insurance policy at VTB, you must:

2. Next, fill in all the fields of the online calculator:

• Area of ​​the apartment in sq. meters (including balconies and loggias);
• The region in which the insured property is located;
• Does the apartment belong to you? (in the case of non-privatized or rented property, it is not possible to select coverage for structural elements);
• Is the apartment for rent? (insurance policy for rental apartments is a little more expensive).

3. Four proposed property insurance policies at VTB will be displayed; the fourth package can be assembled independently based on your preferences.

Structural elements (walls, ceiling, floor, balconies, support beams);

Payment deadlines

The calculated insurance premium is subject to transfer by the policyholder within the time limits specified in the relevant agreement. There are several options:

• Monthly payment together with the principal loan installment;
• Quarterly transfer of money;
• Insurance payment is made once a year.

Some banks, for example, VTB, offer a different scheme for paying insurance contributions. Its essence is that the client immediately pays the cost of the policy for 3 or 5 years in advance. This allows you to significantly reduce the cost of the insurance itself, as well as monthly loan installments, save time, and issue a policy in a fixed amount.

At the client’s request, he has the right to pay insurance benefits in one of the following ways:

• Cash through the cash register;
• By replenishing your current account;
• Through your guarantor.

Insured event on mortgage property, what to do?

An insured event occurred, the neighbors were flooded, there was a fire, and so on, first you need:

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.

4. Prepare a number of all necessary documents for an application for insurance payment:

• Identity cards (passport);
• Confirmation of ownership;
• Originals from the competent authorities (fire department, Ministry of Emergency Situations, police);
• Confirmation of the amount of damage;
• Details for payment of insurance compensation;
• Application form, which can be downloaded on the official website in the “Documents” section.

Service cost

Most lending institutions offer comprehensive insurance. In addition to the object of the transaction (housing), the life and health of the borrower are insured. Some banks require that a policy be issued not only for the borrower, but also for the guarantors. VTB life insurance provides this in case of unforeseen circumstances with the borrower:

• Death as a result of illness or accident;
• Loss of ability to work (receipt of disability group I or II).

If any of the above cases occurs, mortgage payments continue to be paid at the expense of insurance in an amount that does not exceed the insured amount. This helps maintain ownership of the loan items. If, after repaying the mortgage, there is a balance of unused money, then this amount is transferred to the borrower or members of his family (in the worst case scenario).

Typically, the mortgage period is very long, usually 15-25 years. During this time, anything can happen to any person. Therefore, many bank clients unconditionally agree to life insurance for their mortgage. Despite the fact that this increases the number of loan payments, and in general, it is not mandatory by law.

To answer the question of how much mortgage insurance costs, you need to know the amount of the insured amount. The cost of the policy depends on the following criteria:

• Insurance period;
• State of health and age of the policyholder;
• The number of transactions with real estate carried out in the past;
• Technical condition of the mortgaged property.

Let's take the following example:

1. A mortgage is issued for housing worth 1 million rubles.
2. The borrower does not have his own funds.
3. The term of the loan agreement is 60 months (5 years).
4. The interest rate is 12% per annum.

https://www.youtube.com/watch?v=8bzFe7L_hks

Under the given conditions, the average monthly insurance premium is 280 rubles. Over 5 years, the total amount of overpayment is 16 thousand 800 rubles, that is, 1.5% of the size of the loan itself. This example is average. Based on the results of analytical studies, it was found that issuing a life and health policy for the mortgage borrower varies from 1.4 to 1.6% of the total loan amount. No offers were found below 0.5%, nor above 2.2%.

The amount of the insurance premium should gradually decrease. Because interest is calculated on the outstanding balance.