Mortgage insurance is a prerequisite for banks issuing a loan: the conclusion of the contract and the timing of its action, the types and cost of insurance.
Obtaining a mortgage loan, for many citizens of our country, the only way to solve their housing problems. But to provide this long-term loan, the creditor bank must be sure that the borrower will be able to repay it in a timely manner. It is for this that various types of loans are invented, one of which is insurance.
A loan for the purchase of an apartment or at home is a long-term loan, issued usually for 10-20 years. Akak to be a bank, if during this time a person will seriously get sick, will be disabled or in general, God forbid, die? Or if the house is pledged? Or the ownership of housing owned, which seemed to be a borrower and in a pledge of the Bank, will switch to one of the previous owners by the court decision?
Bankers respond to such questions equally: you need to insure all these risks. Ithak way shift the problems that may arise during the period of the loan agreement, on the shoulders of insurance companies. The borrower himself and the borrower himself and the borrower himself are interested in buying their lives and health, as well as acquired housing. If an insured event occurs, it is the insurance company that will pay the balance of loan debt to the bank, will compensate losses with complete death or damage to real estate and will present the interests of a person in court. Everyone decided to get a mortgage loan must understand the need for insurance (because otherwise there will be no money!) And be ready to provide complete information about your health and selected housing. Most credit institutions require insure the life and health of the borrower, acquired immovable property, as well as the risk of loss of ownership of it. Father, which represents each of the listed types of insurance, as you need to pay for insurance and why, we want to tell in this publication.
Comprehensive service
One of the mandatory conditions for the provision of a mortgage loan in many banks is personal, property and title insurance. Consider cases when buying housing in the secondary market, a comprehensive mortgage insurance contract is issued, which includes the life and health of the borrower, acquired housing and ownership of it (the so-called title). Getting a loan to buy a housing under the primary market, you will need to insure our life and health, because the property itself does not exist yet, there is no ownership of it. The aposal of the house of the State Commission and the design of ownership of the apartment will have to still arrange the insurance of the acquired real estate.The mortgage insurance contract is between the insurance company (insurer) and the physical personnel (insurer) in favor of a third party (beneficiary), which is the role of which is the Bank. Why is it done so, and not otherwise? The bank gives you his money, and instead, it receives, roughly speaking, a penny or other document confirming that the purchased housing is in his pledge. If something happens with the subject of pledge (apartment, house) or with the borrower himself, the bank must still return its funds. Having advocate to him their insurance company.
Banks and insurance companies enter into partnerships with each other. Usually insurers (or rather, their integrated mortgage insurance programs are undergoing accreditation procedure in various banks. Vitoga Borrower After notice of the possibility of obtaining a mortgage loan in this bank receives a list of insurance companies in which it can appeal. "The borrower cannot conclude a mortgage insurance contract with a company not agreed with the Bank," says Maria Serov, Head of the Marketing Department and the Development of Credit Products Management of Mortgage and Consumer Lending "Vneshtorgbank". "This requirement is dictated by the need to adapt the type rules and insurance companies insurance contracts. To the features of the mortgage transaction in a particular bank. "
The result of the "International Moscow Bank" works with Ingosstrakh companies and Rosno. Partners in the Mortgage Program "Raiffeisenbank Austria" are "Renaissance Insurance Group", "Ingosstrakh", "Progress-Garant", "Insurance Company AIG Russia" and "Military Insurance Company". Deltacredit Bank collaborates with the same organizations (except for the progress guarantor) plus with "AIG Insurance and Reinsurance Company" and "Alfares". Gazprombank partner is the Sogaz group, the "City Mortgage Bank" - Rosgosstrakh. "Vneshtorgbank" today works with Ingosstrakh and the "Military Insurance Company" and plans to significantly expand the list of its partners in the near future.
Requirements of banks to insurance provision of mortgage loans vary. No effort to conclude insurance contracts. "The term of insurance contracts should not be shorter than the credit period," comments Igor Sadovsky, Chairman of the Board of Deltacredit Bank. "In almost 100% of cases, the insurance contract is the entire validity period of the loan," continues Sergey Lesnikov, Deputy Head of the Office for the Implementation of Special Projects of the Alfactory Group. "This eliminates the client from the need for annual contract prolongation." "As a rule, the client chooses the annual payment of contributions, - adds Valery Ermakov, Head of the Banking Insurance Department of the SOGAZ Insurance Group." However, our insurance program allows you to pay contributions as at the same time and installments: every year, once every six months, quarterly, monthly. "Another point of view is adhered to Alexander Khoshenko, member of the Board, Head of the Department for Work with Physical Persons" Raiffeisenbank Austria ":" According to the requirements of our bank, insurance is drawn up for one year. As the market develops, its cost will decrease. Consequently, if now you are Decide to take a loan and accept the cost of insurance, after a few years your expenses will decrease. Already, insurance companies offer very attractive rates for subsequent years, especially if there has been no insured events. "
In the first scenario, during the term of the loan, the borrower annually contributes the same amount. According to the second, everything is happening: the insurance premium for the first year of the loan is fully paid. After 12 months, it makes a smaller amount, because the size of the insurance premium in this case is revised every year and is calculated as a product of the remainder of loan debt and the insurance factor in this type of insurance. Gradually, insurance premiums decrease. AESLI borrower repays a loan accelerated, the final amount of its insurance payments is reduced even faster.
Many readers of the magazine insurance costs in obtaining a mortgage loan may seem foreseeable. How to justify their need?
Nikolay Shitov, Chairman of the Board of the "City Mortgage Bank": "Insurance is aimed at reducing risks and, first of all, in the interests of the borrower. Of course, you need to hope for the best, but be prepared for the worst. Upon the occurrence of the insured event (for example, in a fire in an apartment or damage to health, which led to disability), the insurance company repays the Bank's debt, and the apartment remains owned by the borrower. "
Igor Sadovsky, Chairman of the Board of Bank Deltacredit: "Our bank as a serious partner seeks to optimize tariffs when working with insurance companies. The tariff policy established by agreement with them provides for the minimum level of rates. The integrated insurance rate is on average 0.8-1% of the loan amount and depends on the age and gender of the borrower, its health status, the term of the insurance contract and risk coverage. As for the need for insurance, I doubt that a person who had to face an insured event, regretted the money he gave for insurance. "
Maria Serov, Head of the Marketing Department and Development of Credit Products of Mortgage and Consumer Lending "Vneshtorgbank": "A characteristic example of the use of mortgage insurance in practice is the occurrence of an insured event under the risk insurance contract for the loss of loss and damage to the apartment. Always a partial damage to the apartment, for example, as a result of a fire, the insurance company will cover the costs of the borrower to restore the real estate object; if the damage is such that housing Recovery is not subject to, the volume of paid insurance compensation will, at a minimum, is sufficient to repay the bank to pay a loan debt residue. "
Alexey Aksenov, Head of the Department of Retail Products and Services of the International Moscow Bank: "As a rule, the comprehensive mortgage insurance contract is about 1.5% of the loan amount per year. But do not regret these money, because all participants in the transaction are interested in insurance. Forward, queue, in order to avoid a number of risks, including the risk of loss of law. Property.
Alexander Kvoshenko, member of the Board, Head of the Department for Work with the Physical Persons "Raiffeisenbank Austria": "Mortgage lending in Russia is still in its infancy, and overestimated insurance rates need to be perceived as a given. To justify high rates to the client and is either desire or the need to purchase real estate. After all, if the client cannot serve a loan or a literal situation, the question does not occur at all.
Our experience in Russia shows that the assumption that the increase in the cost of the loan occurs due to the cost of insurance, is ghostly. Over the past two or three years, the cost of real estate has grown at times. The achieved mortgage loan several years ago do not regret at all, and the maximum 2% of the cost of insurance seems on this background with extinvoable small. "
Life and health
The first step to the conclusion of any insurance contract is filling the questionnaire (it may also be called a statement, the IT questionnaire). In case of life insurance and health, it contains questions that allow the insurer to assess the degree of risk and apply one or another tariff. The circle of these issues is about the same in all insurance companies, only the wording and order of investigation differ. Questions relate to both directly medical aspects and the lifestyle of a borrower-policyholder: its growth and weight (including weight changes by 4-5kg over the last year), bad habits (smoking and alcohol use), the presence of neoplasms (malignant and benign tumors ), diseases of cardiovascular, digestive, urogenital and endocrine systems, kidneys, respiratory organs, view, musculoskeletal system, mental and nervous disorders IT. A separate group of issues is devoted to additional risks, that is, classes are one of the extreme sports: mountaineering, swimming with scuba, auto or motorcycle racing, wrestling, martial arts IT.D. The total number of issues can reach 35 (!). Inesl at least one of them you will answer positively, you will need to specify the details and explain everything in detail ...
Based on the information specified in the questionnaire, the company will conduct a pre-expert examination, and if doubts appear, a borrower-insured can be sent to a medical examination, and in rare cases, in general, to deny insurance. Depending on age and health status, a higher or low insurance rate will be installed for a person. The sizes of insurance premiums can be two, and sometimes three times. For example, with the same loan amount of $ 50,000, the life and health of the borrower costs about $ 80 for a person younger than 30 years old, and the age of 51-60 years is about $ 150 per year. The total cost of an integrated policy depends on these indicators.
All information in the questionnaire will be considered part of the insurance contract. Inesley the insured will hide anything from the insurer (for example, the presence of a serious illness), it will only make it worse, because when an insured event occurs, the company will be able to refuse to the client in the payment of compensation.
Real estate
All banks issuing mortgage loans require insure the purchased housing. We are talking about the structural elements of an apartment or house: carrying and non-relaxing walls, floors, partitions, engineering, plumbing communications, electrical wiring, doors and windows. Interior decoration may be insured by an additional agreement, the beneficiary on which will not be a bank, but the insured itself. "When buying an apartment in the secondary market, the insurance object is undoubtedly, only its design elements," says Mikhail Drozhkin, Chief Specialist of the Department of Banking and Mortgage Programs "Consent". But when implementing the subject of pledge of the bank in the housing market (if the borrower is not It can pay on the loan) Nobody takes into account the inner finish. Value represents only the apartment itself, its area, location of the IT.P..From what risks is the real estate insured? Their list in different companies are about the same: fire, natural disasters, explosion (including gas), unlawful actions of third parties, bay (damage to the property with water), the fall in aircraft and their parts. When determining the property insurance tariff, increasing and lowering coefficients can be applied, which will eventually affect the final size of the insurance premium (contribution). The tariff will be higher if, say, the purchased apartment is located in a house with wooden or mixed overlaps, in the old building, there is a sauna, the house is gasified IT.P. And, accordingly, below, if the housing is equipped with a fire alarm, a metal inlet door, cerebral windows, a contract with the Ministry of Internal Affairs IT.d is concluded. Maximum details about the insurance of apartments can be found in the article "My Favorite Apartment".
Can an insurance company refuse to insure life, real estate and title, if she has doubts about one of the types of insurance?
Sergey Lesnikov, Deputy Head of the Office for the Implementation of Special Projects of the Alfactory Group: "Can. At the same time, there is a specificity. If, when assessing the risk of life insurance for the insurer, there are reasons for assume that the risk of an insured event is higher than the average, but is within acceptable limits, then this is compensated by an increased rate. If, after checking the legal purity of the apartment, it turns out that the risk of loss of ownership is great, it will simply refuse to insure such an acquisition. "
Yana Klein, Head of the Rosno Mortgage Insurance Project: "The refusal is possible only after the risk assessment is underwriters of the insurance company. For example, in terms of titular insurance, it is possible to fail if it is possible to limit the life and working capacity of the life and working capacity, limiting risks or an increase in the coefficient, what the insurer does not necessarily notify the Bank and the Client. Preliminary Tariffs are announced immediately, and the process of foregone examination usually takes two days. "
Dmitry Maslov, Vice President, Head of the Center for Property Insurance of the Holding Company Rosgosstrakh Company: "In the formation of a comprehensive mortgage coverage, underwriting provides examination on the health of the potential policyholder, the conditions of its work and the history of the property - the subject of the pledge."
Mikhail Drozhin, Chief Specialist of the Banking and Mortgage Insurance Department of the Company "Consent": "Maybe if there is sufficient grounds to believe that, for example, the life and health of the borrower with a high degree of probability is susceptible to hazard. Or, for example, there is a construction work next to the house in which the apartment is purchased. And the refusal to insure will not sound as Open reluctance to insure life and health, property or title. Just the insurer will establish a deliberately unacceptable rate, and the potential policyholder will refuse his venture. Of course, such cases are very rare. There was no such precedents in the last three years. " .
Title
Insurance title, ownership of purchased housing, not all banks require. You do not need to pay additional money for this insurance in Sberbank of Russia and in those credit organizations that are issued mortgage loans under the AHML program (agency for mortgage housing lending).
Why do you need to insure title, that is, the loss of ownership of housing? "In the Russian real estate market there are appropriate risks," says Igor Sadovsky from Deltacredit Bank. - Everyone knows that in the middle of the nineties, violations were made in the exercise of citizens of privatization of housing, as well as at the conclusion of transactions, acceptance and registration of IT.d.D. Many negative examples of legislation violations and these days.
Alexander Khoshenko from "Raiffeisenbank" puts forward his arguments: "There is a possibility of losing the right of ownership of the acquired housing by the court decision, if the real estate transaction is invalid for any reason or other reasons. They may be the incompleteness of persons who sold an apartment, the lack of consent to the transaction of other persons who have the right to this property, other violations of the law. " The opinion of colleagues confirms Nikolai Shitov from the "City Mortgage Bank": "We focus on global practice, according to which title insurance is distributed in many countries."
To register insurance title purchased housing, the Insured borrower must answer questions about the question of the past and the present apartment / house and its former and current owners, as well as provide a number of documents confirming this information. If the housing is bought from a legal entity, it is necessary to assemble and provide information about him.
Insurance case, as a rule, the loss of the ownership of the insured to the insured property as a result of the court decision has entered into legal force, which deprives the insured ownership of this property in whole or in part. AB Some Insurance Companies The list of insurance claims complement two more: preservation of the rights of the use of real estate owners after the state registration of the ownership of the insured to real estate and state registration of encumbrance (restrictions) of the ownership of the insured without the consent of the beneficiary (mortgagee, that is, a bank issued a loan) . "This allows you to minimize the risks associated with the partner of the seller and / or its relatives from registration in the apartment acquired by the borrower, possible claims of the family members of the previous owner of the apartment and other violations," says Igor Sadovsky from Deltacredit Bank.
The cost of insurance
Insurance costs in each particular case depends on various factors. "Integrated mortgage insurance already provides reduced tariffs compared to insurance on individual policies, explains Valery Ermakov from Soghaz." In our company, a basic tariff for life insurance, property and title does not exceed 1.5% of the sum insured. We will have an annual annual The contribution for the insured for 30 years of male under the amount of a loan of $ 50,000 for 10 years will be $ 445, of which $ 270- on the insurance life and health of the borrower. "(In this case, the insurance contract is concluded for the entire period of granting a loan, and we are talking about identical annual contributions. ).
If the mortgage insurance contract is one year, and then it is prolonged, the size of the insurance premium is usually about 1.5% of the remainder of loan debt, increased by 10%, per year (!). How will these figures look like for a loan amount of $ 50,000 under a period of 10 years? For the first time, it will be necessary to pay $ 825, a year old- $ 743, after two-$ 660, after three- $ 578, and nine- $ 83, if the borrower will repay the loan on time. All will pay $ 454 per year. Thus, under different terms of conclusion of contracts, the total amount of insurance payments will be approximately the same. They will differ only in size in different years.
Mortgage lending is truly bottomless. Whether the wizard of different aspects can be returned again and again. Ima will definitely continue the conversation in one of the nearest magazine numbers.
The editors thanks "Vneshtorgbank", "International Moscow Bank", "Raiffeisenbank Austria", Bank Deltacredit, "City Mortgage Bank", insurance companies "Rosgosstrakh", "Alfastrak", "Sogaz", "Rosno", "Consent" for helping Preparation of material.