Mortgage insurance at Sberbank. Key Features

Mandatory and voluntary insurance for mortgages at Sberbank

It is imperative to obtain mortgage insurance for the collateral. Without this, such a loan simply will not be provided. After all, the purchased apartment or house is given to the bank as collateral, so the borrower must insure it by law.

At his discretion, a bank client can insure his health and life. Of course, these are additional costs, but they are fully justified. After all, during the period that you need to make regular payments to repay the loan, anything can happen. For example, the borrower may become ill or have an accident. As a consequence, loss of ability to work, and with it, loss of solvency. But in this case, the loan will still remain with the client. There is a risk of losing the collateral, i.e. housing. By insuring yourself against such events, you can be sure that the loan will be repaid and no one will take away the property.

Let's sum it up

Banks themselves determine how much insurance the borrower should have in the policy.
The insurance contract can be concluded for a year or for the entire term of the loan agreement and can be renewed annually.
Insurance must be in effect at any time during the term of the loan agreement.
An extension can be considered both the payment of the next installment and the conclusion of a new insurance contract for the next year. You can renew your insurance both at the insurance company’s office and on the website.
You can find out the cost of insurance renewal using the calculator on the insurance company’s website.
Be sure to notify the bank about this after renewing your mortgage insurance agreement.
The best option to notify the bank is to bring the documents on the renewal of the mortgage insurance contract to the bank in person and ask for written confirmation of this.

Share this article
Categories:

Mortgage

Tags:

Instructions

Which companies can you get insurance from?

Any policy can be issued only with an insurance company that is accredited by Sberbank or a subsidiary of a credit institution. Sberbank has two of them: “ Sberbank Insurance ” and “ Sberbank – Life Insurance”. The list of accredited insurers includes more than two dozen companies. Therefore, choosing the one whose services you can use is quite simple. In addition, all of them have already been thoroughly checked by Sberbank, so there is no need to doubt their reliability and solvency.

How and where can you renew your insurance?

The mortgage loan is issued for a long term. As a rule, it is 15-25 years. In this case, the policy has a shorter validity period. Accordingly, it will have to be extended from time to time. This can be done in different ways.

The first option is to contact the company where the contract was concluded. The insurer's employee will explain in detail what documents are required for this, issue the necessary forms to fill out, and check their correctness.

The same can be done at a Sberbank branch. Since insurance companies are accredited by this credit institution, the bank can provide insurance services on their behalf, including policy renewal.

The third method is the DomClick service. If directly when signing a loan agreement (and when initially taking out mortgage insurance ) you need to provide a large package of documents, then when renewing everything becomes much simpler. Moreover, when carrying out the procedure through this service, you will not need to go to the bank and provide documents there. They will all be loaded into the system at the stage of their registration.

In order to use this service, you must first register. After this, all you need to do is go to your personal account and select the “Policy renewal” option. A form will be displayed on the screen that you need to fill out. It should include information about the current policy, as well as the remaining balance on the loan. The same operation can be done through the Sberbank Online .

How to apply for insurance online?

Register in the system.
Log in to your personal account.
Activate the "Payments" option.
Enter the “Other” tab.
Go to the “Recommended” section.
On the list.
Go to the "Purchase" section.
In the list that opens, select “Mortgage Insurance”.
Read the terms and conditions of the service.
Click the “Go to calculation” button.
View loan information.
Click the “Buy policy” button.
Select payment method.

After confirming the transaction, an amount equal to the cost of insurance will be debited from the account. The entire registration process takes no more than 2 minutes.

Attention! During the insurance registration process, you do not need to enter personal data about the payer. All necessary information is contained in the system. This not only saves the client’s time, but also helps to avoid errors in payment calculations.

What documents will be required?

To obtain real estate insurance under a mortgage, the following documents will be required:

borrower's passport;
loan agreement;
living space assessment report;
documents confirming ownership of real estate.

Scanned copies of documents should be attached by clicking on the “Add file” field and selecting the corresponding images from the folder stored in the device’s memory. The package of documents may vary depending on the insurance company where the policy is issued.

Attention! After registering a policy online, you do not need to provide documents to a bank branch or insurance company.

Is insurance renewal necessary?

Yes, this definitely needs to be done in case of compulsory insurance. The property must be insured throughout the entire loan term. These conditions are specified in the contract and cannot be violated.

If we are talking about voluntary insurance, then the policy does not have to be renewed. But some risks will no longer be insured. And if an insured event occurs, you won’t have to rely on the policy. From now on, the borrower will solve his problems independently. Therefore, if it has already been decided that these types of insurance are needed, then it is better to renew the contract and obtain new policies.

What to do if the renewal deadline is missed?

If we are talking about compulsory property insurance, then for the period until the property was insured, the bank will charge penalties and fines. Therefore, you need to monitor deadlines. If the borrower has temporary financial difficulties and cannot pay on time, the most reasonable solution would be to immediately contact the bank. You need to describe the situation in detail and ask to find a possible solution. Credit institutions willingly meet borrowers halfway if they do not try to hide from the bank or otherwise violate the terms of the agreement.

Registration of an insurance policy for mortgage insurance

Is it possible to change insurance company?

It can be done. Firstly, such a replacement can happen for objective reasons. For example, the insurer will cease to operate or its license will be revoked. Then the client, in any case, will have to choose a new company from among those accredited by Sberbank.

Another situation is that another insurance organization may offer more favorable conditions. In this situation, the client has every right to terminate one contract and enter into a new one with another company. In fact, this can also be called a policy renewal. After all, only the insurer will change, but the very fact that property (or life and health) are protected will remain.

Is it possible to refuse insurance?

You can only refuse voluntary types of insurance. If you take out a mortgage from Sberbank , these are any types except property. The borrower has the right to immediately refuse to sign the contract. Of course, usually the bank insists that without a policy it will be denied financing or the loan rate will be higher. But this is illegal because it violates the provisions of the Consumer Protection Act. Therefore, if the client is completely convinced that he does not need a voluntary insurance policy , he must insist on observing his rights. But we need to think about whether it’s worth losing this option of financial protection. It is unknown what may happen in the future, but you still have to pay the loan. So purchasing a policy is a more than reasonable decision.

What is mortgage insurance

Mortgage insurance is insurance against credit risks that may arise for lenders as a result of circumstances beyond their control, for example, due to default and subsequent sale of property. All banks provide mortgage loans only on the condition that an agreement is also concluded with the borrower on insurance against certain risks. Insurance of the subject of the mortgage against accidents, unlawful actions of third parties, natural disasters and other possible risks is necessary and mandatory.

The size of the sum insured is the main issue, since the volume of payments under the contract depends on it. It is known that insurance premiums are equal to the “body” of the loan. Every year they decrease equally and evenly. The rule applies regardless of whether the agreement was drawn up immediately for the entire loan term or only for the current year with further extension.

Key Aspects

A mortgage insurance contract, or, as it is more often called, a “mortgage insurance policy,” is often concluded for the entire duration of the contract. This is the only criterion that unites products from different banks. Mortgage insurance is issued in cases where there is a possibility of complete or partial, as well as temporary loss of solvency on the loan. The most common reasons for taking out insurance:

to ensure that in any situation the payer will retain the right to repay the loan even with a short delay;
the loan facility (house, apartment, cottage) is damaged and urgent repairs are required;
insurance is paid in cases where the bank client has lost ownership of the purchased property;
any situations that threaten the life and health of the borrower, which are specified in the policy, will be reimbursed in cash;
other phenomena that may affect a person’s ability to repay a loan.

If something unexpected happens - a fire, flood or natural disaster - and the property is damaged, the bank will receive compensation from the insurance company. This way the mortgage will be paid off. If the property owner also insured the down payment, he will also receive compensation. Collateral insurance allows you to avoid paying the bank for lost property.

Is it possible to return the insurance?

The easiest way to get your insurance money back is during the “cooling off period.” It is 14 days from the date of signing the mortgage agreement. The borrower only needs to voice his decision in the application. The bank and insurance company are obliged to accept this document and return the money to the client within the period established by law. Of course, a certain amount will be deducted from the previously paid amount for the days that the policy was in force.

If the borrower repays his obligations to the bank ahead of schedule, he also has the right to a return of unspent money. After all, according to the agreement, the insurance policy applies only for the period during which the loan agreement was in force. In this case, the insurance company must recalculate only for this period, and the remaining funds must be returned to the borrower.

How to correctly refuse life insurance on a Sberbank mortgage

If for non-targeted loans the insurance contract provides for 1 type of protection (life and health insurance), then for a mortgage the situation is more complicated, since the contract with the mortgage borrower is signed on the terms of comprehensive insurance. If you refuse this service, the bank's rate increases and gives the bank grounds to demand early repayment of the mortgage.

Since the obligation of property insurance is confirmed by law, there is a need to re-issue the insurance contract with the exclusion of personal insurance from the list of services provided by the insurer.

If you initially decline life insurance, the mortgage borrower will face an increased rate or a rejection of your loan application.

Despite the possible consequences, the client retains the right to disable the services of the insurance company and return the entire amount paid if he submits an application within 2 weeks after signing the contracts and paying the premium.

The procedure for terminating a mortgage agreement is standard - the client submits a written request and within 7 days receives the paid contribution to the specified details. After terminating the contract with the insurer, it is necessary to resolve the issue of providing compulsory property insurance, since without it a mortgage is impossible. As with the refusal of insurance for consumer loans or a credit card, it is possible to submit by mail, by registered mail with a list of the attachments. When calculating the period for returning the amount, the time for sending correspondence is taken into account.