What is title insurance when buying an apartment on a mortgage? How much
does apartment fire insurance cost? How to insure the apartment from
Hello, dear friends! You are welcomed by the online magazine “KhyterBober” and the insurance expert Denis Kuderin.
Today we talk about property insurance. The article continues the
topic of insurance protection of property, life and health of citizens.
The publication will be of interest to both current and future
apartment owners. It is always useful to know how to protect personal
property from possible risks.
So, let’s begin!
1. Why insure an apartment?
To protect the property from damage and loss seeks every reasonable person.
Certain benefits bring locks, metal doors and security
alarms. However, such protection will not save the apartment from fire,
flooding and other domestic troubles. I’m not talking about natural
In addition, any constipation can be broken, and the alarm can be
turned off. Is there a more effective way to secure your home? There is,
and this method is called – insurance.
Voluntary insurance of an apartment is
the protection of housing from any kind of damage. The procedure does
not cancel the fact of the damage itself, but ensures its full
Citizens of Russia and neighboring countries traditionally
underestimate the importance of real estate insurance. And if health and
vehicles are more or less protected by compulsory insurance, then our
homes are still completely vulnerable to hostile elements and other
In the west, home insurance is a common practice. In Europe and the
USA, almost every apartment is insured against any possible risks, so
everyday troubles for the citizens of these countries do not have such
Residents of the Russian Federation can not yet get rid of a
persistent social stereotype, according to which any insurance is
“deception of workers”, “rioting” and imposed need.
In fact, the cost of insurance commissions is negligible compared to
the cost of repairs after a serious leak or the price of a full
restoration of the home in case of a fire.
In fact, the ordinary citizen has some basic needs. One of them – the
presence of a roof over your head. And if, for example, it is quite
possible to find a new job after being fired, then it is much more
difficult to restore the housing that was lost as a result of the
According to statistics, in Russia
only 5% of apartment owners have insurance. It is good that when buying
a home in the mortgage policy clearance – a mandatory procedure. This
allows you to secure at least a small segment of residential real estate
in the country.
A few words about the reasons for such a short-sighted attitude of
our citizens to real estate insurance. People perceive an apartment
(especially if they live in it all their life) as something immutable
and monolithic, referring to “eternal values” over which no element has
Meanwhile, housing is just a material object that can be affected by
natural factors, malicious intent, the negligence of neighbors and the
Almost everyone whose real estate has seriously suffered, regret that
they did not issue an insurance policy at the time. Why not save
yourself from possible losses and disappointments in advance? Moreover,
when insuring the dwelling itself, everyone has the right to insure the
movable property that is in it.
We list the main risks that protect various types of real estate insurance:
- fires – disasters that affect more than 50,000 residential and non-residential buildings each year;
- gas pipeline explosions, gas cylinders, boilers;
- flooding – this risk is especially great in old apartments, of which the majority in average Russian cities;
- mechanical damage – even new buildings sometimes shrink, after which cracks form in the walls and bearing structures suffer;
- the fall of construction cranes, pillars, trees;
- harm to third parties – even the most careful owners sometimes “drown” their neighbors;
- natural disasters – floods, hurricanes, tornadoes, earthquakes;
- illegal actions – hooliganism, vandalism, terrorism.
In practice, the insurance risks are much greater – if you wish, you can insure yourself against any kinds of possible harm.
Additional information can be found in the articles “ What is insurance ” and “ Property insurance ”.
2. TOP-5 basic types of apartment insurance
As mentioned above, you can insure the apartment itself and what is
in it. Modern insurers offer customers dozens of varieties of insurance
Apartment owners can only choose a policy depending on their personal goals and needs.
Type 1. Insurance of structural elements of the apartment
The cost of supporting structures of the apartment is the main part of the total cost of housing.
Since the risk of destruction of such elements is minimal, then the rates for this type of insurance are relatively low.
A related topic is discussed in detail in the article ” Home Insurance “.
Type 2. Insurance of interior decoration and engineering equipment
Finishing and communication is the first thing that suffers from
domestic fires and flooding. In fact, this is the most important type of
insurance, which is characterized by the highest risks.
Almost every one of us at least once in his life suffered from
leaking pipes and breakdowns in water supply systems. The same type of
insurance guarantees indemnification in case of wiring closures and
other problems with electricity.
Making such a policy, you should objectively estimate the cost of
repair and finishing works in your apartment. It is advisable to insure
the finish to those who have recently made expensive repairs in a new
View 3. Home property insurance
Such insurance will help to compensate for losses in the event of
hacking and theft of property from your apartment. Any valuables are
protected, from large furniture and electronics to jewelry and silver
Type 4. Liability insurance
Actual type of insurance, which guarantees compensation of costs in case you cause harm to another’s property.
While you were resting in the country at the weekend, a pipe burst in
your apartment. As a result, your neighbors suffered leaks from
below. A policy in which there is liability insurance will allow you to
pay damages for repairs. Neighbors do not pay you, and your insurance
This type of protection is especially relevant if expensive repairs
have been made under your apartment, and the condition of your own
plumbing is far from ideal.
Read the special material ” Liability Insurance “.
Type 5. Title insurance of an apartment upon purchase
Title insurance is practiced in the sale and purchase of housing and
mortgage loan. The subject of protection is the ownership of the
The parties to the mortgage agreement and, first of all, the banks,
are trying to secure the collateral property. Title insurance is valid
in case it suddenly turns out that the new owner of the apartment does
not have full housing rights. Title insurance relevant to the secondary
real estate market.
Imagine that you bought an apartment, and six months later it turned
out that the son of the former owner, who had returned from a long trip,
was claiming it.
Or it became known that housing was once arrested because of unpaid
debts. Or it turned out that the seller is an incapable person suffering
from a mental disorder.
Title insurance will help to return the money spent as a result of transactions invalidated.
More information on this topic is available in Mortgag Insurance .
3. How to insure an apartment – 5 simple steps
Insuring a property is easier than you think. However, it is better
to know in advance what nuances and features this process has.
Insurance companies are not charitable organizations. By offering
their products, they pursue commercial goals. Your task is to defend
your interests and benefits.
Important notice: Russian insurers practice 2 types of full home insurance – standard (express) and individual.
In the first case, the policy is issued without inspection of your
home. The cost is calculated as a percentage of the market price of the
The second option involves the participation of an insurance agent –
an intermediary goes to the object and conducts a professional
assessment of real and movable property.
In parallel, there is the
so-called “municipal” insurance – a preferential service available to
residents of Moscow and some other cities. Such a policy covers only the
main risks and does not compensate for the damage caused to movable
Now – step by step instructions.
Step 1. Choose an insurance company
Insurer insurer strife. There are companies for which their own
prestige is the most expensive – such organizations really take into
account the interests of clients and cover the damage on time and in
full when an insured event occurs.
There are less bona fide firms that try to minimize payments or refuse them altogether under various pretexts.
When choosing an insurance partner, consider the following criteria:
- company experience;
- reliability and solvency – do not be
lazy, check on official websites how much insurance money the
organization paid for the past year;
- rating according to reputable agencies;
- availability of preferential offers;
- the number of branches of the company.
Least it is worth relying on reviews in the network – it is better to
ask friends and acquaintances who have real insurance experience.
The table will give a more visual idea of the important parameters when choosing an insurer:
|one||Company experience||Cooperate with companies operating in the market for 5 years and more|
|2||Solvency||Find out what is the total amount of insurance payments for the last or current year.|
|3||Number of branches||The more offices the company has, the more solid is the firm.|
|four||Rating||The most objective assessment gives the rating agency “Expert”|
|five||Promotions and offers||Profitable shares will reduce the cost of the policy by 5-50%|
Step 2. Choose a list of necessary insurance risks
It is not always advisable to choose a full insurance, which includes
all existing risks. For example, if you live in a seismically stable
zone, why would you insure against an earthquake?
In the list of movable property also should not include everything –
choose the most valuable things: electronics, newly purchased furniture,
antiques (if any).
Step 3. Collect documents
You will need originals or notarized copies of documents.
Here is a list:
- passport (with registration);
- documents for the apartment;
- title deeds;
- act of expert assessment of housing;
- mortgage contract (if housing is bought on credit).
Some types of insurance require additional documents.
Step 4. We carefully study the terms of the contract
When the agent gives you a ready-made contract, do not rush to sign
it. Experienced insurers are advised to study the text thoroughly, even
if the conditions have been agreed in advance.
Sly insurance lawyers often enter into the document all kinds of
“additional conditions” and clauses that repeatedly complicate the
procedure for confirming damage. Therefore, we recommend that
you consult an experienced lawyer before signing the contract .
It will be a shame if, after the occurrence of the insurance
situation, it turns out that this case does not include the list of
expenses paid by the insurer.
Step 5. Sign the papers
The contract does not cause complaints, insurance premiums have been
paid. The last item left is signing the document. Ideally, before
leaving your autograph on paper, you should give the text to an
How much does apartment insurance cost?
The amount of insurance is always individual, since the objects and selected risks are different for each homeowner.
In general, the cost of the policy is influenced by the following factors:
- the status of the apartment and its market price;
- number of rooms and area;
- the number of insurance risks;
- insurance period;
- amount of coverage (you can choose it yourself).
These are only basic parameters, in fact they are ten times more. The
average cost of insurance is in the range from 2 to 7 thousand rubles.
4. Where to insure an apartment on favorable terms – TOP-5 companies with the best deals
We offer the top five most reliable Russian insurers with favorable insurance terms.
5. How to save on apartment insurance – 5 proven methods
Expert advice will help to avoid unnecessary expenses when processing
insurance documents. Remember that the main purpose of insurance – the
protection of personal interests.
Method 1. Use individual insurance programs
Such programs, unlike the standard ones, provide for professional
inspection of the apartment. Tariffs are lower, and the valuation of the
property is closer to the real one. The package includes an extended
list of services, which gives more room for maneuver.
In addition, under the terms of individual programs, the amount of compensation for an insured event will be much higher.
Method 2. Install an alarm in the apartment
Insurers reduce tariffs for customers whose apartments have modern
ways of protecting property. Expensive alarm system pays for insurance
costs in the event that the contract is for a long term.
Method 3. Exclude irrational risks from the package.
Every owner has the right to insure only those risks that seem
rational to him. For example, if the owner is not afraid to flood his
neighbors (he completely replaced all the plumbing in the apartment), it
is not necessary to insure civil liability.
Method 4. Use the franchise
If you agree to take on payment of minor types of damage (in the
amount of 5-10 thousand rubles), the company will certainly offer you
more favorable rates.
Method 5. Insure the apartment only during the long absence
It is not always advisable to insure an apartment for a long time:
use protection when it is really necessary. For example, if you go on
vacation or on short-term earnings in another city, there is no need to
buy an annual policy.
Make a contract only for the period of your absence, but do not
forget to include in the list of services liability insurance to
I recommend to watch an interesting video on the topic of the article.
Let’s sum up.
Home insurance is an important and useful event that will save you
from large and small expenses that inevitably accompany the operation of
It is important to draw up a policy according to all the rules and never forget about your own financial and property interests.