Insurance for mortgage: luxury or necessity?

In Russia, the expected growth of the mortgage. Experts predict an increase in mortgage lending, as in the banking sector, falling mortgage rates. Borrowers again raised questions about insurance, because without it, get a loan for buying a home is impossible. On insurance mortgage we talked to the head of the Department of development and support partner sales Rosgosstrakh Ilya Metelkin. - Can the borrower at the conclusion of the mortgage agreement to offer bank services to its insurer, not the one chosen by the bank? Does Russia have such a practice? - At present, virtually every bank offers its borrowers, including and mortgages to choose from several insurance companies. The list of such companies include insurers that meet standard requirements for business reputation, financial position and other parameters indicate a high probability of execution of the insurance company commitments on timely payment of insurance claims. All these parameters are reviewed regularly by banks on the basis of data provided by insurers. These companies also have substantial experience in banking insurance, including and the interaction with a specific bank. In many ways this applies spent the principles of interaction between the bank and insurer, which allow customers to quickly draw up the necessary policies. However, customers also have the option to insure the risks of any insurance organization meeting the requirements of the bank to the insurance companies and the conditions of provision of insurance services. - Still, many borrowers consider mortgage insurance as a burden. Why did the mortgage insurance should be considered as an economic necessity and for the borrower and the bank? What guarantees get both sides of the Insurance contract? - Insurance for mortgages, in fact - it is the obligation of the insurance company to provide financial assistance to the borrower upon the occurrence of adverse events in his life. This assistance can be implemented until full repayment of the borrower's obligations to the bank. Of course, the insurance case can not occur. But the probability of its occurrence there, and actually it is expressed in the tariff. Long-standing practice of insurance for mortgages shows that borrowers or their relatives who have received insurance payments are not considered insurance encumbrance. Interest of banks is also quite evident. In the event that the borrower will lose the ability to generate revenue as a result, such as disability, the bank will be forced to either invite his relatives to pay the loan or to realize the mortgaged property. The procedure for implementing a pledge to Russia costly and time can take quite a long time. - Insurance of any mortgage risk is mandatory under current legislation? Can a borrower refuse insurance, while maintaining the very mortgage? By law, mortgage insurance is mandatory only collateral against the risk of loss or damage. If the loan is a mortgage, then give the borrower from the insurance can not. - Situation: A citizen of disability and lost a steady source of income. The loan is not repaid. Will his insurance will not lose their housing? If this risk is provided by the insurance contract, it will certainly help. - Now in Russia the decline in the average lending rate on the mortgage. Can we expect that also followed, and lower insurance rates? Or the cost of insurance does not depend on the cost of credit? - Cost of insurance (rate) depends on the likelihood of an appropriate insurance risk. Risks insured under the mortgage, in principle, the standard for the voluntary market and has ample statistics. Today the rate on three types of insurance is on average about 0,8%.