Is it possible to refuse mortgage insurance and is it reasonable
If you calculate the annual mortgage insurance payments, you get quite large sums. And then, quite naturally, the borrower has questions: "Why is this insurance needed at all? And is it possible to do without it?"
According to the legislation of the Russian Federation, the borrower does not have the right to completely refuse mortgage property insurance. Insurance campaigns act as a guarantee of security and, in case of unforeseen situations, will be able to protect the interests of both the bank and the borrower. But, despite the mandatory mortgage insurance, the borrower has the right to choose a more suitable company. He can do this both at the time of purchase of housing, and annually when extending the policy. Thus, in order to reduce annual insurance payments, it is necessary to regularly monitor favorable offers, discounts and promotions on the market.
What is insured?
In fact, the apartment is in draft form: walls, partitions, doors, ceilings and floors, windows, balconies and glazing. That is, everything that affects the cost of an apartment globally. When health and life insurance is offered, it is better not to refuse, especially in the long term. Although this type of insurance is not mandatory, but in case of refusal, the bank can raise the rate by 1-2%. It is noteworthy that property and life insurance is allowed to be carried out in different companies. There is always a choice. You just need to carefully study the conditions.
Yes, sometimes insurance seems like a waste of money, but it is worth remembering that first of all it is the protection of the owner from major financial troubles. You can always optimize your insurance costs. After all, new and more profitable offers often appear on the market.
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