When planning to apply for a mortgage at Sberbank, it is necessary to study in detail the issues related to insurance. You should find out the need and price of the policy, how insurance is issued for a mortgage at Sberbank, what situations are considered insurance. Another important nuance is whether it is possible to terminate the contract and return the fee.
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Mortgage insurance in Sberbank
At the moment, registration of an insurance policy at Sberbank is mandatory only for housing purchased on credit. All other financial organizations in Russia operate under such conditions. The main reason for this is risk minimization.
If the borrower loses housing or property is damaged, you can receive insurance payments in the specified amount, which are automatically redirected to Sberbank to pay off the loan debt. Therefore, it should be understood that the home insurance program is beneficial, first of all, to the bank.
All reputable financial institutions cooperate with insurance structures. Sberbank has its own company - Sberbank Insurance, which issues policies to persons applying for housing loans.
Possible risks covered by insurance
There are a number of situations that are considered to be insurance:
- intentional damage or complete destruction of housing;
- theft or robbery;
- explosion or fire;
- disaster;
- flooding.
The amount paid by the insurance company is determined independently, based on one of the options:
- the cost of the insurance policy is equal to the cost of housing, according to the expert assessment of specialists;
- the amount is equal to the balance of the loan debt. As monthly payments are made, the sum insured decreases.
With all this, if one of the insured events occurs, Sberbank Insurance pays compensation equal to the amount of losses within the total cost.
Calculation of the amount of the insurance policy
Taking into account the fact that a mortgage is issued for several years, and sometimes for several decades, an insurance policy must be obtained annually anew. This is because the standard validity period is 1 year, and then it must be renewed.
The amount of insurance premiums is calculated individually, but its size does not exceed 1% of the loan debt per year.
Mortgage life insurance at Sberbank
If an insurance policy for real estate is issued mandatory, then life insurance of the borrower is a completely voluntary matter. From the bank's point of view, it is most beneficial to cooperate with an insured debtor in order to have guarantees regarding the return of borrowed funds in any case. In addition, debt obligations are automatically removed from close relatives in case of unforeseen circumstances.
When purchasing a life insurance policy, all debt obligations are removed from the borrower in the event of:
- of death;
- loss of working capacity, disability or serious injury;
- temporary disability due to an existing illness or accident;
- job loss against their will.
If you wish, you can supplement this list with your own risks. Each insured event is coordinated with bank employees. The price of the insurance policy will depend on the nature and number of situations.
In each situation, certain refund rules will apply. For example, if death occurs or disability is registered, Sberbank Insurance assumes all responsibility and fully repays the entire remaining debt. If support is needed temporarily, the company will make monthly payments for the entire period until the client can do it himself.
Favorable terms of life insurance
To stimulate the number of issued insurance policies, the company has reduced the interest rate on mortgages from Sberbank. That is, the loan rate is reduced by 1% compared to other loan programs without insurance. In addition, there is a guarantee of repayment of debts, if something happens to the borrower during the entire period of mortgage lending.
Return of mortgage insurance
Based on the foregoing, housing is necessarily insured, and a life insurance policy is purchased at will. In addition, the right is given to terminate the insurance contract and return payments. Bank employees rarely report this, so all Sberbank customers should be aware of this possibility.
Conditions under which you can return the sum insured or part of it:
- If, after the entire debt is repaid, and the validity of the insurance policy is equal to or exceeds 11 months, you can return the entire amount of the policy.
- If less than or exactly half of the term of the insurance policy has passed, a payment in the equivalent of 50% of the paid amount of insurance is due.
- If more than half of the term has passed, the return of funds, most often, will be refused. You can try to resolve the issue in court. Here it is important to understand whether such a decision will pay off. The company will attach a list of expenses where the money was spent and their balance may turn out to be quite insignificant.
The procedure for reimbursement of insurance payments is accompanied by the submission of an application by the borrower, as well as a corresponding statement from Sberbank on the absence of debts.
Documents required for the return of mortgage insurance
Samples of documents that need to be collected for reimbursement of insurance premiums can be downloaded here:
Video - mortgage insurance
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