The law "About mortgage securities" obligatory is only insurance of apartment upon damage and destruction. The banks which are giving out mortgage loans, are not limited to it, preferring to insure still life and health of the borrower and a title.
Insurance
Cost of insurance of apartment makes 0,2-0,5 % from its price. The total amount depends on quality and a habitation category. Expenditure on payment of insurance payments increase expenses of the borrower on 1-1,5 % in a year.
The bought real estate is insured on a case of fires, leakings, failures, acts of nature, illegal actions and etc. As the habitation is insured at a rate of debts against the credit organisation by the current moment every year the payment size should decrease.
If the borrower for the objective reasons cannot return to bank the loan, for example, will be traumatised and will lose work that, insuring the life and health, it will be protected from risk, to lose apartment. This type of insurance often includes disability, including time.
Insurance of similar risk increases tariff size, on the average, by a percent quarter. The insurance sum is defined by set of factors. In the questionnaire of the borrower, questions on its weight, bad habits (smoking), about love to an extreme to mountain skiing, mountaineering, boxing, parachute jumps and that similar can be included, about diseases the sex, age and marital status of the borrower Is etc. considered.
The insurer can evade from insurance payment for some reasons. He can refer to suicide attempts, alcoholic and narcotic intoxication, participation in aviation flights, damages of health owing to a radiating irradiation, management of any vehicles without the rights or in a condition of alcoholic or narcotic intoxication, illness. But if the borrower did not know about the illness which was showed after the conclusion of the contract of insurance for the insurer it is insured event.
By means of it the bank protects itself from an encroachment on the real estate bought on tick from the third parties. When the risk of loss of the property right is great, bank, as a rule, refuses the credit, therefore insurance of this risk manages to the borrower in 0,25 % from real estate cost.
Except obligatory kinds of insurance, banks can demand to insure and other risks, for example, an autocivil liability or risks on a case of contingencies of the borrower.
