Mortgage insurance requires

At current housing prices to buy an apartment on their own savings are only capable of one. Most have to borrow money from the bank and the next 20 - 25 years to pay. What if there was a fire in an apartment or you will lose the ability to work, who will pay your debt to the creditor? It is necessary for this insurance. Mandatory condition Imagine you buy an apartment, take it at the bank a lot of money, spend their pennies before. Picks repair, and are ready to welcome guests to a housewarming party! And then a person comes and says that the real owner of your chorus is, he still shows a makeweight in the court's decision, which confirms it. As a result, you are on the street, every month you pay the bank for a loan. Here is a nightmare of anyone who buys an apartment. After all, no real estate agency does not guarantee 100% that this will not happen. A flat is pledged to the bank until such time as you do not pay credit to the penny. What's that, but for his safety cans baked the most. Therefore, insurance - one of the prerequisites for a mortgage. - Conclusion of the contract of insurance is a prerequisite for granting a mortgage, because no bank will loan if the borrower's life, property (as collateral) are not insured - says Daria Soldatenkova, head of mortgage insurance Insurance Group RPRA. - In this case, insurance is a guarantee for bank loans. But since you do not want to take on additional costs, because the cost of buying an apartment and so huge. So many are looking for a way to get by without insurance. - If the borrower before signing the credit agreement will refuse insurance, the loan is likely to fail, and to challenge the decision of the bank is almost impossible - continues Soldatenkov. - Bank, guided primarily by how easy it will get the money back, wish to compensate for the increased risk of default of money more profitably and raise interest rates. So, if the loan will still be issued without a contract of insurance costs the borrower will still increase due to higher interest rates. If the borrower refuses to insure after receiving the loan, the bank's future actions will depend on the content of the loan agreement. As a rule, there is indicated that the failure by the borrower to ensure repayment of the loan the bank has the right to prepay debt. If the contract does not provide early repayment, the bank has the right to claim the money in court, arguing his claim that the denial of insurance is a material breach of the interests of the lender. Choose risks - Traditionally, a contract of mortgage insurance includes insurance triple protection - says Helen Pavlovsky, Head of Property and Liability Insurance JSC "DGC." - Insurance of the real estate - apartments, real estate insurance - the subject of the mortgage in case of loss at his right of ownership (title insurance). Finally, life insurance, health and ability to mortgage the borrower in case of death, disability temporary or permanent, until the receipt of disability resulting from an accident (injury) or disease. But in addition to the client's request can be insured its civil liability to third parties in the operation of real estate. Insurance will pay up to the moment when you do not pay the bank. Pleasure is not cheap, and if it proves futile, assume you are very lucky. But what if an accident did occur? - When the death, destruction of property, for example due to fire, payment shall be made first to the bank in the amount of outstanding obligations of the borrower on the loan (including interest on the loan), the remaining amount is paid to the client - the owner of the subject mortgage. For all other risks of the payment will occur in the same way. First, the insurance company pays your debt to the bank, and all that remains of the sum insured, up to you. Price subject to insurance rates depend on many factors. On the characteristics of planning, administration, the house in operation, location, environment protection, fire safety and so on. And the sex and age customer. But in general insurance apartment will cost you 0.1 - 0.2% of its value. Title insurance - 0.2 - 0.4%, also the price. Life and health (death from any cause disability and I, II group), women 0.2 - 1.7%, men 0.3 - 2.9%. Important: Read the contract before signing the contract should read it carefully. If you do not understand the terminology or language do not hesitate to ask again the consultants. Because it affects your spending. Pay special attention to the following conditions of the contract: * procedure of making insurance payments and a list of insurance claims for which damages would be reimbursed, or, conversely, the insurance company has the right to refuse to pay the * insurance policy must define the rights and obligations of the parties. Which facilities are subject to insurance (eg, structural elements apartment building, finishing, etc.) * sum insured shall not be less than you owe on the loan plus interest. By the way, Save will not work despite the fact that the Supreme Arbitration Court invalidated the requirement of banks to insure the life and work capacity. For more than a month has passed since the day that the Supreme Arbitration Court invalidated a requirement to insure the life and ability to work to get a mortgage. Many hoped that now will be able to save the policy. But no such luck. Banks have been slow to cancel the item in the contracts of mortgage insurance. In Russia nepretsedentnoe right, and the decision of a court in a particular case may not be the basis for making the same decision in another case, the lawyers explained. In order for this rule to work, you must modify the legislation on mortgage, which is not available. Of course, citizens can easily sue and even hope that he would take their side. But the fact that the banks by law can deny you a loan without any explanation. And most of all, if you decide not to insure the life and work capacity, the lender will do so. Banks, too, can understand. Without the guarantee of the old loans they can not produce new ones. Another scenario is also not good consumers do not promise. Banks may waive the condition of life insurance, but then they lay this risk in interest rates. As a result, loans are so expensive that they will be able to pull one. In addition, even if you sue the right not to insure their lives, this does not mean that you can forget about policy. Property insurance and title insurance has not been canceled. And these risks are in any case would cost a minimum of 0.8 - 1% of the loan amount.