Insure and live quietly with a mortgage

What can be insured at all?

Insure may be a loved one, that is, his life and loss of ability to work, their possessions, their financial responsibility, liability, ie their liability to third parties. The risk of loss of ownership of real estate can still be insured.



In general, everything is possible. What you need, when you take a mortgage loan?

There mortgage insurance when required, but is voluntary.

Required banks require to insure the property, which is transferred as collateral (mortgages). It is believed that this is required by the law on mortgage (we will not argue about it now). The cost of insurance depends on the type of accommodation, the house will be more expensive apartments, wooden house - even more expensive. This insurance is generally a good thing, and civilized. He insured and live quietly. If something happens to housing - a flood, fire, etc., the insurance company will pay for the damage. When a mortgage when you pay every month to repay the loan amount and a serious budget can not allocate the extra money for such repairs, it is useful.

Well, in general, this is all bound. All other optional insurance from the point of view of the bank, but will affect the cost of credit. The more insurance you will have, the less may be the interest rate on your mortgage.

But I would like to talk about some of the more insurances.


insurance risk of loss of life and disability. Not necessary. But imagine that you pay on the loan, and here with you something happens (God forbid, pah-pah-pah). Who is going to pay the loan? There is no one? Start delay. It is necessary to you? But, if you insure, you will pay for the insurance company. And do not forget that if the rate of such insurance below.

insurance risk of loss of property rights. title insurance, if shorter. Again, optional insurance. Now the little which banks require such insurance, and if you want it, it is only for the first three year loan, yet are not considered to expire limitation period, ie where a third party may bring an action to protect their rights on your property. And here there is a big "but". Civil Code does provide for a term of protection of violated rights. It really is 3 years. But 3 years from the date on which the person knew or should have known about the violation of their rights. A person can learn about the violation of their rights much later than the date of issuance of credit, for example, a child whose rights are infringed. Grow up and submit a claim. Maybe, instead of the maximum coverage is better to check all around the apartment (or other property) in advance before purchasing it? It's your risk, and not the bank. What you should pay attention to, can be found here.

If you decide on the insurance if the mortgage, do not forget that in the complex all this costs less.
And do not think that your rights are protected by someone else, especially a bank that thinks only of himself.

Calculate the risks and decide what insurance you need, what - no. Rate the full cost of the loan, taking into account the cost of insurance and compare with the cost of the loan without insurance. Choose the best loan is not on a whim, and mathematically.