There are several types of insurance, but the most important and important are 3: title insurance, insurance, real estate investors and financial risks insurance for the mortgage. The most cautious buyers are also resorted to such insurance as the risk of death or disability of the borrower, the risk of death, loss or damage to real property owned by the borrower and pledged to the bank, lender, and the risk of losing the object of collateral as a result of termination of the right owned by the borrower on the property.
Title insurance - the loss of ownership of the property in the event that the transaction of sale of real estate invalid.
Insurance of financial risks shareholders - is used for joint construction in a few cases: 1) the failure of construction time - when the developer does not provide real estate investors an apartment in a period that is prescribed in the contract, 2) in the case of double sale, which often becomes aware after the date home. This is a situation where the same apartment for more than two claims to shareholders, and 3) in case of insolvency of the builder.
Mortgage Insurance - This insurance is used by banks in order to neutralize the risks of its own to extend credit. To do this, some banks are asking the client to conclude a comprehensive agreement on three types: life insurance and disability of the borrower, insurance, property insurance and property rights to the object (the title). Title insurance and life insurance - are not mandatory, but are able to protect the borrower from many risks.
As already mentioned above, customers also have recourse to the following types of insurance:
The risk of death or disability of the borrower - in this case the validity of the life insurance and loss of working capacity of the borrower is obvious, since these factors directly related to the payment of the loan. In real life situations may arise as a result of which the borrower will be unable to repay the loan (eg, inability to work due to injury or illness). Guess they are difficult, since 15-20 years - a considerable period, even for young, healthy person, but to protect themselves and their families from possible financial difficulties to help an insurance policy under which the insurance company will reimburse the bank unpaid by the borrower of the loan.
The risk of death, loss or damage to real property owned by the borrower and pledged bank lender - the insurance of the property is held in case of damage due to unforeseen events (fire, gas explosion, natural disaster, the Gulf of wrongful acts of third parties, and so etc.). In the insurance case to the bank debt can be repaid by the insurance company received insurance compensation. This view - property insurance, which is given as collateral - is provided by federal law. Housing is required to insure, as it will be pledged to the bank for several years, and during this time that can happen anywhere - from the flood to fire. In this case, the bank will receive compensation from the insurance company.
The risk of losing the object of collateral from the demise of the borrower's ownership in real estate.
Title insurance - is insurance against the risk of loss of property rights. This component of the mortgage insurance and is not the last place because insures risks of attacks on property by third parties.
There is a growing insurance furnishing, as furniture, furnishings, domestic appliances are rather expensive. Wanting to finish and to insure the property, the owner of the apartment itself determines the amount of insurance premium, which he expects.
Banks are required to insure
If you purchased an apartment with a mortgage on the secondary market borrower, as a rule, obliged to compulsorily insure passed to the mortgaged property against risk of loss, death, damage to the bank for the duration of the loan agreement. This requirement of all banks. Other types of insurance programs depend on a particular bank.
Note that if the borrower is insured "title" acquired real estate at its full value, that is not in an amount equal to the balance of outstanding loans, as banks usually require, in which case, title insurance will not only help repay the loan to the bank, but also back their own money that was invested in the purchase of real estate.
"Despite the fact that any bank check legal purity of the acquired real estate loans, still strongly recommend to insure title to the full value of the property to avoid future trouble, - said Deputy Chairman of the Board Alexander LIOU Zaletov. - In the absence of insurance for the full value of real estate risk of loss of the borrower is very high, as a result of termination of property rights problem arises not from the insurance company, while the borrower - because he will have to recover their investment and credit bank. "
Term life insurance
"Currently, the market for many mortgage customers who are in any case have to resort to insurance - President Alexander Sugonyako AUB. - When it comes to title insurance, we can note a moment - despite the fact that the general limitation period is three years, some customers are interested in five years, and even ten-year period. The level of awareness among customers about the possibilities of title insurance is quite high. " But it is worth noting that insurers offer title insurance is for up to 3 years, since the risk of property loss is relatively large only in the early years of ownership.
You can insure everything: from a city apartment (details, interior decoration, etc.) to a country house, as well as any buildings near it - the garage, sauna, etc. Insure the property can be completely or at certain positions. In this case there are different versions of hazards. In addition to theft, robbery, fire, flood, it is possible to insure against accidents with cooking gas, water pipes, etc., as well as their liability to third parties (unless an emergency situation created by the client).
The cost of insurance depends on many factors: the value of the property, life insurance, housing characteristics, etc. The cost of insurance, as a rule, is 0.1-0.5% of the value of the property.
If we talk about insurance is available in the ownership of housing, to date, to insure its easy enough. This can be done by contacting selected insurance company (preferably, of course, choose a major, proven players in the insurance market) or you can go to a simpler way.
The voluntary housing insurance has become quite active development in our country about the middle 90s. At present, it is quite popular among the citizens.
Yet the demand for insurance, real estate, which analysts say, slightly exaggerated. As practice shows, a little volunteer who among our people insure their homes. No more than 2-3% of home buyers voluntarily decided to insure your property.
However, it should be noted that there are cases where the insurance is really helping out.