Collateral insurance involves a number of procedures. Citizens applying to the bank consider that insurance is an extra burden on their pocket that is not beneficial. Is it so? Consider why and how property is insured.
Why get insurance
Mortgage property insurance is a way to protect the rights, first of all, of a creditor in case of property loss or damage. I must say that the willingness to insure property increases the chances of obtaining a loan at the bank. Banks do not hide this, posting relevant information on their resources.
Borrowers often ask themselves, "Why should they insure the same security deposit (car or real estate)?" It is one thing to pay insurance in the event of a small loan, another thing is when acquiring real estate or even a car. The amount of regular payments in insurance of collateral is significant.
In case of destruction or significant damage to the facility, the insurance company will pay the damage, and the client will pay off the debt to the bank at his own expense.
Features of insurance through banks
Most often we are talking about houses, land and vehicles. All other objects, as a rule, do not fall under insurance of collateral. For example, no one agrees to cover risks arising from entrepreneurial activity. Share in authorized capital and securities are excluded.
Banks offer to arrange insurance of collateral property either in the company with which they cooperate, or in a company that meets their requirements.
Usually the service is aimed at covering cases of damage, destruction, loss of ownership due to actions of people or force majeure.
At the same time, the risks of paying a loan are almost never covered. If such insurance is offered, it extends to a limited number of cases, then it is almost impossible to achieve its payment.
Insurance
The mortgage property insurance contract is signed in accordance with the insurance rules. The company develops them on the basis of current legislation. According to him, the following points are prescribed in the document:
- participants in the transaction (bank, insurance company and debtor);
- insured property (in particular, real estate rights);
- the nature of the event, in the event of which money is paid by the insurance company;
- amount of insurance compensation.
In principle, the registration system is unified, and Sberbank insurance of collateral is not very different from other banks.
The client has the right to choose: pay for the service in one payment or agree to an installment plan. The contract is in writing. Most often, the questionnaire is filled out, and several documents are attached to it. The list is determined by insurers.
Features of insurance in Sberbank
What insurance is offered from? Options:
- fire, explosion, flooding;
- natural disasters;
- theft, robbery, robbery;
- damage or destruction of property by third parties;
- other circumstances.
In addition, property right is insured (title insurance). For example, a court will be deprived of property rights due to dishonest actions of strangers.
Amounts paid are calculated by insurers based on two options:
- according to the size of the remaining amount of debt;
- according to the market value of the property at the time of signing the agreement.
Mortgage Insurance and Sberbank
In one of the largest banks in the country, the conditions are offered the same, but with some nuances.
The institution does not limit its customers to who to take out insurance, it only requires a list of documents. Bank specialists then study and make decisions on them.
Desiring to attract customers and protect their own interests, the bank points to a single tariff for companies with which it has cooperation agreements. It may change, therefore it is desirable to clarify this nuance in the bank.
What documents are requested in accredited companies:
- application completed by the client;
- copy of the client’s passport;
- mortgage agreement;
- real estate purchase and sale agreement.
Making a mortgage, the bank seeks to resort to the help of its own appraisers. The difficulty is that they underestimate the value of the object, and it’s difficult to fight.
If we talk about a mortgage, property insurance is inevitable. And the bank simply will not agree to do otherwise.
Thus, Sberbank mortgage insurance is an established process. It remains for customers to behave leisurely and carefully so as not to shoulder an extra burden.
Finally
The desire to take out a loan to buy a car or, moreover, housing requires a person to take out insurance. Banks prefer to work with specific companies. It is not forbidden to use the services of a third party. The percentage may be higher than usual, and not the fact that you can save on insurance premiums.
The list of cases covered by insurance is quite wide. But it is aimed at protecting the bank. So, for example, no loss insurance is offered by the borrower.