10 myths about Sberbank mortgage insurance: nuances in 2021

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25.02.2020

Mortgage is a long-term housing loan for the purchase of housing secured by real estate. As a rule, banks lend for large amounts. At the same time, it is impossible to predict whether the borrower will make payments on time. For a bank, a mortgage, in fact, is not a risky type of lending, since the issued loan can be repaid through the sale of collateral. But along with this, the terms of lending include insurance obligations, in particular life insurance. Usually, it is not mandatory, but it provides additional security for the transaction both for the bank (in insurance cases, the insurance company is the guarantor of payments) and for the borrower himself, covering a number of risks. When applying for a mortgage, we also offer comprehensive insurance products.

Myth 1: Life insurance for a Sberbank mortgage is mandatory

There are 3 types of insurance that banks offer for mortgages:

• The property, or rather its main structures, without furniture or renovation;
• Life and health of the borrower;
• Title - protection of the purchase itself and the borrower's rights to the property.

Insurance of collateralized property is mandatory under the mortgage law. Without this type, it is impossible to get a loan for housing.

Basic real estate insurance with SberInsurance has a large list of risks, which include: fire, flood, illegal acts of others, mechanical action, natural disasters, lightning, aircraft crashes, destruction during construction.

At the request of a person, the list can be expanded and supplemented with necessary items, but because of this the price of the policy will increase.

Based on the law, life and disability insurance cannot be mandatory. But often such insurance reduces the interest on the loan. Sberbank gives a 1% discount on mortgages.

As a rule, Sberbank employees do not insist on registration of title. Most often, this service is offered when mortgaging a secondary home, warning the client about the dishonesty of the sellers.

Cost issues and calculations

The responsibility to insure the mortgage loan and the mortgaged property rests with the borrower himself. At the same time, he pays the insurance amounts from his own, not loan funds. During the mortgage lending boom, the cost of insurance for such contracts, as well as their conditions, changed significantly. The price of insurance has increased, and insurance companies, in pursuit of profits, have complicated insurance products, dividing them according to the principle of 1 risk - 1 insurance. By 2021, when the excitement subsided and policyholders began to take a more rational approach to choosing insurance products, universal insurance programs appeared that combined several possible risks. So, today the calculator allows you to calculate several insurance programs at the same time.

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When purchasing housing, borrowers are forced to simultaneously enter into several or at least two insurance contracts:

• compulsory mortgage insurance
• property insurance, that is, purchased real estate.

Additionally, it is proposed to obtain title insurance. In addition, a number of banks require life insurance for borrowers and co-borrowers in favor of the bank. Thus, all types of insurance contracts are aimed, first of all, at protecting banking interests, since the beneficiary of all insurance products is the bank that issued the mortgage loan.

Myth 3: You can only get insurance from a bank

Most clients are sure that they can only take out mortgage insurance from the company offered by the bank, but this is not the case. The borrower has the right to choose any organization independently, but in order not to pay additional interest for increasing the mortgage rate, it is better to choose organizations accredited by the bank.

Sberbank has about 20 companies. The most common are Sberbank Insurance, Absolut Insurance, AlfaStrakhovanie, VSK and others.

Any bank offers insurance companies that are beneficial to it (for Sberbank this is SberStrakhovanie), but this does not mean that the client does not have the right to choose an organization that is profitable for himself.

Subject of mortgage insurance

The subject is mortgage risk insurance. A loan for the purchase of housing, carried out within the framework of mortgage lending programs, involves the issuance/receipt of significant amounts. A change in the market situation for both parties to the contract. In other words, both the bank and the client can cease to exist, and financial risks cannot be excluded.

In general, all mortgage risks can be divided into systematic and unsystematic. The majority of risks are systematic. There are non-systematic ones, characteristic of a particular economy.

Thus, there are quite a lot of risks in mortgage lending; they depend on the course of inflation, economic development or crisis phenomena, the state of the real estate market and many other risk factors that are interdependent and influence each other.

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Myth 4: It is profitable to take out mortgage insurance from a bank

First of all, each bank will offer favorable conditions for them and will be extremely reluctant to compromise when registering with other companies.

It is best to check the list of accredited companies online in advance at Sberbank and select the necessary conditions. And after that go to the bank.

The borrower can choose organizations not accredited by Sberbank, but in order to agree on a discount on the mortgage, the bank will have to check the company for financial stability. Often employees don't want to do this and get into conflict that only senior managers can resolve. Even if they make concessions to clients and check the insurance system, they must be prepared that this will take some time.

The main advantages of Sberbank Insurance are an expanded list of insurance risks, but their policy is twice as expensive. So, they pay even if the damage occurred as a result of the actions of the insured person; in a state of intoxication; suicide, etc.

Most insurance companies refuse to pay in such cases. But if a person is sure that such risks can be eliminated, then there is no point in paying the insurance company twice as much.

In addition, by selecting different insurance companies, you will be able to take advantage of personal discounts, individual offers, etc. When registering through a bank, all this is not available.

Stages of changing insurance company for a mortgage

1. Accredited banks - you need to check with employees and check in the contract: insurance companies must be accredited by the bank or optional.
2. If the insurance company may not be accredited by the bank, then you simply need to continue the search using important criteria. In the case of a certain accredited list of insurance companies, it must be found on the official website of the bank, from employees in the office or by calling the hotline. Some banks separate lists of accredited insurance companies based on the subject of insurance: property or health of the borrower. Many may offer combined policies, so you can be on two lists at once.
3. Compare prices and conditions of insurance companies. The simplest option is an online calculator. On Polis812 you can easily calculate and select the necessary insurance option. The cost will depend on the balance of the debt; type of property; age and gender of the borrower.
4. Pay attention to the risks covered. Sberbank Insurance provides the most expanded list of risks, but the amount will be 2 times more than competitors. Therefore, the client needs to analyze what cases there may be and which insurance companies cover them. For example: some people need protection from a gas explosion, for others there is no point in this, because... gas is not equipped with it.
5. Submit an application to your favorite insurance company and wait for their decision. After receiving consent, proceed to the next steps.
6. Prepare a package of documents. There is a general list of papers: passport; ownership of property; mortgage agreement; debt balance (certificate is ordered from the bank); extract from the Unified State Register.
7. Conclude a new insurance contract. Each company has its own procedure for concluding contracts: in the office, online, or combined (i.e., documents can be sent electronically, but the contract can only be signed in the organization). The date can be set for the next day after the end of the previous policy or at the discretion of the client.
8. Terminate the contract with the old insurance company. The termination procedure is provided for in the agreement.
9. Provide the bank with a new policy. Each bank also has different options. Some accept scans by email, with a registered letter with notification to the main office, or only in person at the office.

Myth 6: You can’t get your money back for Sberbank insurance

The mortgage is not for 1 year. Anything can happen over a long period of time. Insurance may simply not be needed.

Each signed agreement must be read and thoroughly familiarized with each clause. The annex to the agreement must specify the conditions and procedure for termination.

Sberbank Insurance provides the possibility of returning money for insurance:

• Refund of the full cost - only if the application is submitted within 14 days after signing the contract;
• Partial compensation is realized in proportion to the number of days that the policy should have been valid.

A list of documents is attached to the application. The main ones include: passport, policy, confirmation of insurance payment. Additional papers are determined based on the situation. For example: heirs claim the right to inheritance; in case of early repayment of the mortgage, a corresponding document, etc.

At Sberbank Insurance, it is possible to terminate the contract during a personal visit to the bank or by registered mail with delivery to the main office, delivery by courier is also possible. If the decision is positive, the money will be credited to your bank account within a week.

Change of insurance if the contract is signed

Even if an agreement between the client and the insurance company is concluded, it is still allowed to change the company. First, the bank is notified, which provides documents for terminating the contract with the original insurance company. After signing them, the borrower enters into an agreement with the selected company.

It is also possible that the borrower enters into a new contract, and the old one is canceled automatically if it is not concluded for the entire mortgage period. It is better to clarify the exact procedure with the insurance company or read the contract in more detail.

It is necessary to pay attention to the terms of termination of the contract, because Not in all cases the insurance premium is refunded. Based on the law, during the cool period (the first 15 days after the conclusion of the contract), the entire cost of the policy is returned.

If the contract was terminated after this period, the refunded amount is calculated in proportion to the number of days remaining. Some insurance companies do not return the insurance premium at all or for a certain amount of time before the end of its term (a month, three, or half a year).

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Myth 7: Life insurance for a Sberbank mortgage is too expensive

Life insurance with Sberbank Insurance can be taken out by persons over 18 years of age, whose age at the end of the policy will not be older than 65 or 60 years (men and women, respectively). They may also refuse to pay or conclude a policy if you have heart, liver, or mental diseases.

When taking out health insurance at Sberbank, a person is insured not only against death and disability (only groups 1 and 2, since when assigned to category 3, the ability to work is not lost), but also if he becomes ill with Coronavirus infection.

In many contracts, Sberbank indicates the reasons for refusal to pay: war, strike, explosions, radiation and damage caused by the insured person. The caveat is that if a suicide occurs, then Sberbank makes payments to the heirs if at least 2 years have passed since the purchase of the policy.

All these risks, together with property insurance, will cost the client about 4,000 thousand rubles. per year (if you take out insurance through Polis812), while for life insurance Sberbank gives a discount of 1% per year on the mortgage (with a debt of 1 million, the savings will be approximately 6,500 rubles).

Consequently, even by taking out a mortgage and concluding a life insurance agreement, a person remains in a small financial advantage and does not have to worry about the mortgage if an accident occurs.

Registration of the contract

Data on the amount, loan term, existing diagnoses, facts of visiting a doctor, hospitalization are usually asked to be indicated in the client’s questionnaire. With personal insurance, the insurance company is interested in the client’s profession, his lifestyle (activity, extreme sports, etc.). Such data influences the assessment of insurance risks and tariffs. The client submits an insurance application, a copy of his passport, SNILS, and mortgage agreement. If the questionnaire indicates serious, chronic diseases, the IC may need a medical report on the person’s health status (or medical record). All conditions of the life insurance contract are specified in the contract, which must be read carefully and pay attention to important points.

List of mortgage insurance cases

Standard insurance cases, which are most often prescribed in a contract for the safety of life and health:

• Disability of groups I-II - the amount of coverage (fully, partially) is prescribed in the contract;
• Temporary loss of ability to work (for a period of no more than 30 days) - compensation of debt, in proportion to the time spent on sick leave;
• Death - the insurance company fully repays the debt; after the encumbrance on the property is removed, the relatives become the heirs of the deceased.

It is worth studying the terms of the contract as carefully as possible. Clear wording eliminates discrepancies and possible disputes and guarantees payment of compensation.

In what cases will there be no compensation?

In most cases, compensation will not occur if:

• The borrower is registered at the dispensary and has been diagnosed with HIV or AIDS;
• There was a suicide;
• Injury or death while under the influence of drugs or alcohol;
• If a person lost his life/health while driving a car without having a license;
• The insured event occurred during the commission of a crime, which was proven by the court.

Important! If a citizen received a disability, was paid compensation, and then died, then there will be no death benefits. If you concealed the presence of an occupational or general disease when filling out an insurance application form, the insurance company will also refuse payments.

Amount of insurance premium and calculation of monthly payments

The insured amount is usually equal to the loan debt. Tariff - 0.17-1% of the insured amount. Conditions that increase the coefficient:

• The age of the policyholder - the older, the higher the rate;
• Lifestyle - dangerous profession, dangerous place of residence, extreme sports and other factors;
• Having a chronic, serious illness.

If the client’s health condition worsens during the policy period, the insurance premium may be reduced (the reason is that the real health condition was hidden).

Franchise type

Franchise is part of the damage in the form of a percentage or a fixed amount that the client reimburses at his own expense. The type and size are determined by agreement of the parties. There are mainly 2 types of deductibles used in insurance:

• Conditional - when the amount of damage is equal to or less than the deductible, compensation is not paid and vice versa, the amount of damage exceeds the deductible, the insurance compensation is paid in full;
• Unconditional - the client receives the difference between the amount of loss and the amount of the deductible.

The advantages of a franchise are savings due to lower insurance premiums, discounts on the purchase of a policy, and it is beneficial for large amounts of damage.

Conditions for payment of compensation

A mortgage has its own peculiarities of recognizing an event as an insurance event. For example, regarding the risk of “death,” the relatives of the deceased must notify the insurance company before the expiration of the policy, but no later than a year from the date of the event. Disability - during the insurance period, but no later than 6 months after its expiration. Temporary disability - after 30 days of continuous sick leave. After recognizing the event as an insurance company, the insurance company repays the bank the entire amount of the insured person’s debt. Compensation for the risk of loss of ability to work is made for each day of loss of ability to work in the amount of 1/30 of the mortgage payment.

Payment documents:

• Statement;
• Certificates from a medical institution confirming the fact of the insured event (certificate of death, disability status indicating the cause, sick leave);
• Documents for the right of inheritance from relatives (upon death);
• A certificate from the bank about the amount of mortgage debt (with details for transferring compensation).

Important! Until the money is transferred to the lender, you must continue to pay the mortgage according to schedule, since the insurance company does not compensate for fees and penalties for late loan payments.

Early termination of the contract

The cooling-off period is 5-14 days, during which the insured person can terminate the insurance early (without giving reasons) and receive back all the money paid (if the insured event did not occur during this period).

If the cooling period is missed, then you can terminate the life insurance contract at any time during the term of the mortgage loan, since this is a voluntary type of insurance. The periods when the client can terminate the contract early, the amount of funds for return (25-75%) are established by the insurance company.

The procedure for terminating an insurance contract is regulated by the general rules of Art. 958 of the Civil Code of the Russian Federation, the Law “On the Protection of Consumer Rights”.

Amount to be refunded = the amount of the insurance premium paid minus the days that have passed from the date of conclusion of the contract to the day of termination minus income tax minus the cost of agency support services.

Responsibility for failure to fulfill obligations

The policyholder is responsible for providing false information on the insurance object. In this case, the insurer has the right to recover losses from the violator by offsetting the insurance payments made.

If the insured event occurs due to the fault of the insured person, the beneficiary, they are deprived of the opportunity to receive compensation. The absence of guilt is proven by the offender.

Liability for violation of the insurance contract is established by Art. 937 Civil Code of the Russian Federation.

Myth 9: I took out insurance at the bank, and I’ll sort out the problems there

If problems, questions or insured events arise, contact the insurance company. Even if the agreement was concluded at a bank branch, it is only an intermediary of services.

Before applying for a policy, you must carefully read the list of insurance services and the procedure for resolving issues. This will help you avoid having to resolve problems in another city, receive payments and be confident in the legality of the policy.

There are no problems with well-known companies (VSK, Reso-insurance, AlfaStrakhovanie), because offices are located in Moscow and they have transparent conditions. With start-up and unknown companies, everything can be much more complicated.

Rating of companies offering NSZH

Many well-known organizations offer endowment life insurance - some are cheaper, some are more expensive:

1. Renaissance Life.
2. Alpha Life Insurance.
3. Russian Standard Insurance.
4. Rosgosstrakh Life.
5. Capital Life.
6. VSK life line.

This industry is growing slowly but surely. According to experts, the insurance market will expand by 5% annually.

By choosing the right insurance company, you can save a significant amount. However, it is important to ensure that cheaper does not turn into worse: insurers may exclude some insured events from the contract.

So, if you insure only against accidents, then you may not expect insurance payments in the event of death or serious illness leading to disability. Therefore, life and health insurance services should not be too cheap, as this can be risky.

Myth 10: It is more profitable to issue a policy on the official website

It is much more profitable to take out insurance on Polis812:

• It is possible to select insurance from the required list of insurance companies accredited by the bank;
• The conditions are briefly described;
• There are additional discounts and extended policy terms (compared to Sberbank);
• All insurance issued online through Polis812 is accepted by Sberbank;
• When using the promo code, an additional 15% discount.

Take out mortgage insurance

How to choose the best mortgage insurance company

• Initially, insurance companies accredited by the bank are selected. Next, you need to organize suitable insurance companies according to the cost of annual payment, list of conditions and risks.
• If you need to take out property and health insurance, you can consider comprehensive policies. In some companies they are much cheaper.
• A convenient way to select and issue a policy is the online insurance calculator on Polis812.

On Polis812 you can get insurance online at a competitive price and with a 15% discount. Additional extended terms and conditions are also provided.

Take out mortgage insurance

We calculate the insurance amount

First, let's calculate the total amount of insurance payments that you must pay over the entire term of the mortgage. To calculate it, you need to use the formula:

D=S+(P/100)*S,

where D is the total amount of insurance, S is the amount of debt on the date of its payment, P is the interest on the loan. Let's assume that the amount is 2,000,000 rubles, the rate is 13%. Thus, you can calculate the amount of insurance using the formula:

2,000,000+(13/100)*2,000,000=2,260,000 rubles.

This figure can be scary, because it exceeds the amount of debt, which is already quite large. But you need to understand that the lower the debt, the lower the amount of insurance payments. It decreases proportionally. The insurance amount is recalculated either annually or upon expiration of the period specified in the contract.

Now that you know your total mortgage insurance amount, you can calculate how much you will pay per year. The formula looks like this:

Y=D*i/100,

where Y is the amount of the annual premium, D is the total amount of insurance, i is the rate of the annual insurance premium. In the previous example, we got an insurance amount of 2,260,000 rubles. Let's say the rate is 1%. Then the result will look like this:

2,260,000*1/100=22,600 rubles.

As you can see, the amount of mortgage insurance is calculated quite simply. And the amount of monthly contributions looks much less daunting than the total.

What to insure for a Sber mortgage in 2021?

The terms of mortgage insurance have remained unchanged for several years. Now borrowers are still required to insure their property (apartment). Title and personal insurance remain voluntary types of protection.

You need to insure your apartment for a mortgage every year. The cost of insurance will be recalculated and reduced in accordance with the repayment of debt. In addition, you have the right to change your insurance company every year and take out personal or property insurance where it will be cheaper.

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