Integrated insurance in mortgage lending
Mortgage loans are not for one year, and the need to be a guess that that awaits us in the next 20 years. Therefore, as banks seek to protect their capital, forcing the borrower to buy three simultaneous policy. This tri-called comprehensive insurance protection and, according to experts, is entirely justified by the lender. As they say, "just in case of fire." However, the cases are different ...
The comprehensive insurance policy issued to borrowers normally for the duration of the loan. In dealing with the insurance company may require the borrower to the same documents as for credit approval. If the loan amount exceeds 100 thousand U.S., the insurance company sends the customer in the medical clinic, where testing. Clinic borrower usually selects from among those accredited insurance company.
In some cases, borrowers are trying to save by giving banks the life insurance policy, which he issued employer social package. In such cases, the creditor refuses to credit the existing policy, since the terms and amount of insurance to mortgage lending differs from the established system.
When buying housing on the secondary market borrower begins paying property insurance, title and ownership of a loan. In concluding the agreement on the sharing of construction insurance, life insurance and health only borrower, as the joint venture is not yet available. As soon as the house will be delivered and paid for the apartment property, and the insurance contract perezaklyuchaetsya title. In both cases, life insurance and disability borrowers typically pay from the date of receipt of credit.
According to experts, demand bank insure purity title to the apartment, bought in the secondary market is adequately. Such a facility could sold and resold several times, and the real danger that come unaccounted owners or contract will be invalidated for other reasons.
However, insurers do not always pay damages to cover the insurance policy, they were denied for failure to pay the required fees and taxes, the transaction sale of alcohol or drugs, changes in federal law, the outbreak of hostilities.
Most banks require title insurance and the purchase of apartments from the developer. Creditors believe that while the acquisition is the risk of loss of property rights. Insurance case could occur, for example, if the house was illegal, or the developer has declared itself bankrupt and the house is built. Do insurance companies usually have their own lists mute credible developers. And if the construction company it is not, the borrower may decline to a contract of insurance, justifying it difficult for all risks.
The cost of insurance on the borrower's mortgage program average 1-1,5% of the outstanding loan in a year. Rates and conditions in the various insurance companies about the same amount of insurance has many factors and depends on the loan, the borrower's age and sex, state of health, employment, his hobbies, etc.
Insurance offices of the damage can cost a borrower in the 0,2-0,5% of the amount by which it is immune, and title insurance in the 0,5-1,5%. The price can affect the condition of the building, age, the repairs, etc. Object insured against fire, bays, explosions, accidents, natural disasters, illegal actions of third parties and others. The cost of insurance covering the same amounts, depending on the history of apartments, in particular the number of transactions concluded with her in the past.
Insurance premiums borrower can pay once for the duration of credit or insurance to pay annually. Either way, and in another case has its pros. In the first case, the client retains protection for the entire duration claimed credit even with the early repayment of the loan. A second version of the client will be released from further payment of insurance if he made regular payments and early repayment of debt to creditors.
Often, lenders demand for life insurance and health of all sozaemschikov. In this case, the insured is not one but several joint-borrowers. In the case of insurance payments are proportional to the percentage of responsibility of each of the borrowers, which is usually prescribed in the contract. These shares may be different. The main duty assigned to the healthiest and the youngest, while the rest sozaemschikov amount will be lower. If the questionnaire will be given false information, then the insurer has grounds for denial of reimbursement. As the insurers, the questionnaire is an integral part of the insurance contract and its signing, the customer confirms all the information.
Insurers can also evade payment of accidents due to alcohol or drugs borrower, disease, suicide attempt, in aviation flights (excluding passengers on scheduled flights), the administration of any equipment without rights, etc. In each case, the insurance company will be dealt with individually.