Late mortgage insurance Sberbank

The essence of mortgage insurance

If a person takes out a consumer loan, then insurance is a recommended, but not mandatory addition (the bank allows you to choose any insurer, change the conditions, etc.). In the case of a mortgage agreement, stricter control is assumed - the law obliges to issue policies in relation to real estate.

The client will be offered a whole range of insurance services. The final cost of the policy will be influenced by factors:

form of insurance;
duration of the mortgage;
assessed value of real estate.

After calculating the insured amount, it is multiplied with the tariff and divided by 100. In general, the size of the annual payment under the policy (depending on the type of contract) is in the range of 0.3% -0.6%.

Pay or ignore

A significant portion of mortgage holders are trying to figure out whether it is possible to refuse insurance and reduce the amount of regular payments. The law requires that loans for the purpose of purchasing real estate be protected by a policy. The insurance fee is included in the basic regular premiums.

Ignoring obligations will lead to sanctions:

if the bank does not receive additional funds, but begins proceedings (first, employees of the settlement department send notifications and try to reach the debtor);
if the money does not arrive, the bank goes to court demanding early repayment of the entire loan.

The court may decide:

for the client to forcefully repay the debt in full;
raise the interest rate against the debtor;
assign an additional penalty;
initiate a judicial penalty: if a person does not answer calls and does not make contact, then the court transfers the case to the executors, who issue additional fines, costs, etc.

If an insured event occurs, you need to notify the lender and the insurance company. Many borrowers worry that in this situation, the insurance will not pay out at the time of the event or will not cover additional costs. As stated in any bank, all money is insured, so such a situation cannot arise.

What happens if the next payment is not paid?

Recently, on Internet forums you can find many stories about how the loan recipient deliberately did not pay for insurance and did not receive any sanctions in return. You should not trust such sources. Even if such a situation actually happened in reality, most likely an error occurred that could be discovered at any time.

It happens that a person simply forgot to pay mortgage insurance on time, in which case it is necessary to contact the bank employees as soon as possible to explain the situation and pay off the debt.

As the payment deadline approaches, insurers usually notify the client of the need to pay the next installment. If funds are not received into the insurer's account within the specified period, information about the defaulter is transferred to the bank. The lender, in turn, may apply penalties, for example, increase the interest rate or charge a late fee.

If within a month from the specified payment date, payment is not received by the insurance company, credit managers will try to contact the client and the persons specified in the contract via calls and SMS messages. Having failed to achieve a result, bank employees may take more serious measures and, six months later, take the case to court demanding full repayment of the loan ahead of schedule.

In rare cases, the bank may sell the debt to a collection agency. The methods of operation of these services have often been sanctified by the press recently, as they often crossed all boundaries of what was permitted.

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

Insurance is a mandatory condition when applying for a mortgage. This rule is regulated by Article 31 of the Federal Law.

However, it is worth clarifying some nuances here. The policy is related only to the protection of the real estate itself. Banks often impose life and health insurance on borrowers. This clause may be written in fine print so that the client does not notice additional conditions and is obliged to pay premiums for the policy. However, such actions are considered illegal and can be challenged.

If the client did not notice that life and health insurance was imposed on him, then he has the right to refuse the policy after signing the contract. However, one must also take into account the fact that many banks refuse to issue a mortgage without debtor protection or increase the interest rate in order to cover their own risks.

What happens if payment is late?

If payment is late, the insurance premium must still be paid, otherwise proceedings or penalties will follow.

Related article: What is property loss insurance?

In this case, the client must take into account:

if the validity period of the agreement has been missed, then you need to contact the insurance company department and rewrite the agreement or try to extend it;
if a delay occurs, but the contract remains valid, then the debt must be paid in full - then no measures will be taken.

Based on the law, it is not possible to evade insurance premiums. The signature is considered legally valid, therefore the person undertakes to fulfill his obligations. Banks also have the right to force the borrower to work with a specific insurance organization. A person has the opportunity to study the entire list of accredited companies and choose the one that covers the borrower’s needs. Prices for different insurance companies can vary significantly, so it’s worth thinking about the choice.

Main consequences of systematic non-payment

If you do not pay insurance, coercive measures will follow. First, insurance companies remind debtors about the upcoming payment a few days before the deadline. If the money does not arrive in the account on a specific date, then the bank intervenes - it joins further proceedings and tries to receive the funds on a voluntary basis.

If the payment was overdue by 1 month, the client receives regular messages and calls asking him to repay the debt under the policy. Bank employees will also try to contact the loan guarantors if the person cannot be found. If the debtor evades obligations, does not make contact and does not make payment, then the creditor files a lawsuit or transfers the case to debt collectors.

If the case goes to court, the debtor is most often required to repay the amount in full ahead of schedule. This is an extreme measure, but if this condition is stated in the loan agreement, then the clause will work against the borrower in the proceedings. If the case is transferred to a collection agency, then a nervous life awaits the bank client. Company employees will try in every possible way to get money from the person. Sometimes debt collectors break the law in their attempts to collect funds.

However, many banks are loyal to customers. They are delaying filing a lawsuit. Most often, the company first raises the interest rate or imposes penalties for each day of delay. If you compare the amounts, the savings on the policy are much less than the overpayment on the loan.

Benefits of insurance

If you take advantage of the extended program, this will provide you with financial protection up to the amount of loan debt. In the event of the incident mentioned above, you will receive money for restoration work and for the purchase of similar housing. Your children will not pay off your debts. In case of incapacity for work, during this period you will not have problems with regular payments.

Recommended article: Tax deduction for mortgage life insurance

The presence of such a clause in the contract allows you to fulfill financial obligations even in unforeseen circumstances, such as illness or disability. You will avoid litigation and preserve your property.

In this case, the company will reimburse the funds to the bank:

compensation will be 100 percent upon the death of the borrower;
50–75% in case of loss of performance (complete or partial);
an amount equal to the monthly payment – in case of temporary illness.

The state also passed a law on obtaining a tax deduction for mortgage life insurance. The borrower must independently fill out the 3-NDFL declaration and indicate the calculated amount. A prerequisite for a 13% deduction is a long-term policy with a validity period of at least five years.

Important! Over the course of a year, a citizen can recover funds in the amount of no more than 120,000 rubles.
Mortgage insurance – what is required?

Is it possible to pay for insurance in installments?

Many clients are concerned about whether it is possible not to pay mortgage insurance every year. Most often, the bank recommends paying the full amount at the time of purchasing the property. They assure that this way no interest will be charged on the additional amount of money and the overpayment will be reduced.

The client agrees and pays the money at a time (up to 2% of the property price). If, for example, he decides to sell an apartment in six months, then he completely loses the funds allocated for the policy. When recalculating, the bank always finds reasons why the client should not receive a reduction in the amount. In such circumstances, it is recommended to enter into an agreement with annual contributions.

Related article: Features of insuring an apartment against flooding of neighbors

When paying outright, the agreement is concluded for the same period as the mortgage loan. For example, for 30 years. If the client signs the terms, he pays the entire amount at once. It is much wiser to claim an agreement valid for a year. In case of special circumstances, the borrower will not have to lose a large amount. In a year, he will be able to easily renew the policy.

The only negative is that in such a situation there is a risk that in each subsequent period the percentage of the insurance premium will be increased (due to the economic situation). However, there are also different opportunities to avoid overpayment.

General information

This condition is specified in the text of the loan agreement itself and its violation entails certain financial sanctions. You can find out what may happen in the event of a delay under the insurance agreement in the terms of the mortgage agreement itself.

More often than not, delays under an insurance contract occur due to the carelessness or forgetfulness of borrowers. But there are cases when contributions under an insurance contract are stopped intentionally, due to lack of money, in the hope that no sanctions will follow, out of a desire to save on additional expenses for the mortgage.

Typical delay situations:

Forgot to renew the contract
They deliberately did not renew it after the expiration of its validity period, if it was concluded for a period less than the term of registration of the mortgage,
Forgot or missed another insurance payment.

Missing an insurance payment or not renewing it may well go unnoticed by either the bank or the insurance company, and the borrower may not even receive notification of a delay. This scenario is especially likely if the borrower pays the mortgage on time and there is no reason to doubt his solvency. But this doesn't happen often.

As a rule, insurance company representatives are the first to respond. They act proactively, warning in advance about the next payment or the need to extend the contract. In case of delay, the information is transferred to the bank that issued the mortgage. And it is from the bank that sanctions may follow in this regard.

Sanctions that can be applied by the bank in case of delay in insurance:

Penalties (0.5-1% of the overdue amount), fines, increased interest rates (up to 20%) and other financial sanctions,
Assignment of the amount of the penalty in the absence of a concluded insurance contract for the property,
Write-off of the monthly mortgage payment to pay for the insurance, so the debt will accumulate on the mortgage, and not on the insurance,
Requests for early repayment of the loan balance,
Reducing the amount of insurance payment upon the occurrence of an insured event,
The bank's appeal to the court for violation of the essential terms of the contract, which includes insurance of the collateral or the life/health of the borrower.

The imposition of any sanctions is possible only if they are specified in the text of the lending agreement. In most cases, banks limit themselves to imposing additional fines or changing the terms of the loan. The bank will apply to the courts only in case of significant delays, otherwise the legal costs will significantly exceed the benefit received.

Is it possible to reduce the amount of insurance payment?

There are several ways to save on your insurance premiums. The first is filing a tax deduction. Mortgage loan relief is associated with 2 factors:

the amount of personal income tax paid by a person when calculating wages;
the cost of the purchased property.

A tax deduction can be applied to the insurance and the entire amount of the debt if:

a mortgage has been issued to purchase an apartment;
a loan was issued to build a house.

If the client is going to quickly repay the debt under the contract, the insurance will still have to be paid without fail. Obtaining an uninsured loan to purchase an apartment is impossible due to legal regulations.

Before applying, it is recommended to obtain information on all loan offers available on the market. The best program can save you a few percent off your regular rate. It also doesn’t hurt to enlist the support of a lawyer - he will tell the client which products are mandatory and which ones can be discarded and save money.

The second way to pay less is to get money back for additional insurance. This option is only possible in the following cases:

Returns are processed within 30 days. The amount will be compensated with a recalculation of the days that have already passed (since at that time the insurance service was provided in full).
Within 3 months from the date of signing the contract - then you can request 50% of the paid insurance premium.
In case of early repayment of the loan (if the policy is not needed because the loan was repaid, then the insurance company can return up to 70% of the amount spent - the rest was used to pay for the service, commission, etc.).

The ability for clients to issue a refund for imposed insurance was introduced in 2021. You can apply for compensation only after the loan has been paid in full. If a life and health protection policy was concluded, but the client did not know that the service was not mandatory, then he must send an application to the bank. The request form can be downloaded from the company’s website or on the Internet.

Insurance in most cases is only useful for the bank. If something happens to the object of the pledge or the debtor himself (becomes incapacitated, dies, etc.), then the debt will not be repaid. This indicates losses - the insurance company is obliged to compensate them in relation to the bank.

If the client is under 30 years old, then the policy is several times cheaper. For example, for a 50-year-old borrower, insurance will cost 35-40 thousand rubles (for a 30-year-old - 4-7 thousand under similar conditions).

In February 2021, a loan was issued to me through deception by scammers and money was withdrawn from my credit card. This happened after supposedly Sberbank employees called me with an offer to work remotely and I agreed to undergo training because I was looking for remote work. When completing my studies, I had to familiarize myself with the point of applying for a loan, since my task was to help clients further with this particular issue, then I was informed that I needed to go to the bank and remove the insurance for the loan and say that I would not use this loan. It sounded like a refusal of an approved loan. I went to the bank and said so, I won’t use the loan, I need to close it and cancel the insurance. I did not receive an explanation from the bank employees, but I received an offer for a credit card, after which I activated the credit card that I had had for a long time. Then I found out that I had received my child’s pension and allowance and transferred this money to my Tinkoff card, since I sometimes opened it with Sberbank during my studies. Then I received a call from 900 about transferring funds to Tinkoff Bank. I was also surprised why the call came so late and after the operation. And then I checked all the accounts and reviewed the SMS codes. As soon as I found out that my money, pension, and even money from my credit card had disappeared from my account, I called Sberbank, where they simply refused to connect me to the operator three times. A statement was filed with the police, and a statement was also filed with the bank under the return clause. Of course, the police have already suspended the case, the bank is accusing me that I was provided with all the codes and I myself made transactions through the mobile bank. Yes, during the training, I had to open a mobile bank and look at the applications that I was trained on, but I didn’t apply for a loan, I didn’t tell anyone the codes. Yes, I didn’t even see them myself, didn’t open them, didn’t read them. She did not perform any operations. Now the bank requires payment for the issued loan and credit card debt. There are two children in her arms, one of them is disabled. I do not work. We live only off benefits and pensions. The police tell me to pay my debt. The bank calls too. There is a mortgage. I do not work. What can I do in this case. How to write off this debt? I can’t afford to pay a lot of money for services. What can I do myself? I contacted the bank and reported everything about this. I asked that transfer operations be canceled and all that. The only thing the bank says is that I provided the data, but I don’t know how this is possible. The bank insists that all transactions were made through a mobile phone, but I did not make any transactions other than sending an application for a loan and indicating there that I am a pensioner, although I am not a pensioner. Then she went and refused the same loan. But there is no reaction. What can I do in my defense? After all, you have children and the possibility of having your apartment taken away is scary? What can I offer the bank? It's already three months overdue.

Is it possible to cancel mortgage insurance in advance?

First, it is worth distinguishing between compulsory insurance and additional (life and health policy). It is impossible to refuse the first option, as stated in Article 31 of the Law “On Mortgage”. However, it is worth introducing a few nuances here. In the same standard there is a note: if otherwise is not regulated by the agreements. There are banks that allow the refusal of real estate insurance when issuing a mortgage. For example, "Delta Credit". It has a “Assign Insurance” program, which allows the debtor to calculate the risks himself and choose an option.

Article on the topic: Features of insurance of a private house and cottage, its cost and registration

Since refusal of insurance increases the risk of property loss, this will affect the interest rate. Such a service will cost an additional 1.5%.

However, real estate insurance is considered mandatory in relation to mortgages, since most banks are not ready to work with high risks and indicate in the contract that the policy must be issued.

In the second case (life and health protection policy), insurance can be refused, regardless of the terms of the contract. Here it is worth understanding whether it makes sense to save at this point. The bank tries to impose several types of insurance to reduce its own risks. The company cannot force the customer to buy the product in question. However, there are loopholes in the law. Since cancellation of the policy increases the bank’s risks, it has the right to change the interest rate. The surcharge ranges from 0.2% to 5%.

In addition to additional expenses, the client needs to understand: if something happens to him, he will not be able to earn money and pay fees. The bank does not intend to engage in charity - all obligations to repay the mortgage will be transferred to the heirs. If they are unable to pay the loan or refuse to inherit, the company takes the collateral.

However, if he does not refuse life insurance, then when the event occurs, the borrower is guaranteed to receive a payment. It greatly exceeds the cost of the premium and will cover a significant part of the debt (depending on the type of contract and the term of the mortgage). The borrower must calculate the risks and benefits independently. If refusing additional insurance turns out to be more profitable, the client may demand that the policy be removed from the contract before signing it.

Mortgage insurance is a service that is primarily of interest to the bank. This way he covers his own risks of losing funds. The client is obliged to take out real estate insurance, but may refuse additional policies imposed by the bank.