What mortgage insurance consists of

Under the Russian Mortgage Law only the collateral — the flat or house — must be insured against loss and damage. Insurance of the borrower's life and health and of the title is voluntary, but without it the bank may raise the loan interest rate. The sum insured usually equals the outstanding balance, so the policy gets cheaper every year.

How we calculated

  • Collateral. The sum of Insight Insurance base rates for fire, explosion, natural hazards, water damage, falling objects, unlawful acts, structural defects and vehicle impact — 0.1156% a year.
  • Life and health. Rates for death and Group I–II disability from an accident or illness from the same table, separately for men and women by age. For example, a 32-year-old man — 0.340%, a woman of the same age — 0.228%, a 57-year-old man — 1.43%.
  • Title. The risk of losing ownership — 0.143% in the first year; banks usually require it for three years after buying a resale property.

As a cross-check we compared the result with Bank of Russia statistics: under instalment credit life policies for terms over 10 years concluded in 2025, the premium averaged 0.273% of the sum insured; for buildings of individuals it was 0.245%.

Why insurers' prices differ

The company coefficient is the ratio of its average premium per buildings policy for individuals to the market average; for life insurers it is based on credit life insurance (Bank of Russia, 2025). A ratio outside 0.5–2.0 or missing data means "price on request". In practice the rate also depends on the borrower's health, occupation and hobbies, and on the bank's requirements.

Preliminary estimate

Outstanding balance RUB 5 million, the borrower is a 32-year-old man, collateral and life: 5,000,000 × (0.1156% + 0.340%) ≈ RUB 22,780 for the first year. Collateral only — about RUB 5,780.

This is an indicative estimate. Learn about banks' requirements on the mortgage insurance page; to insure belongings as well, see the home insurance calculator. Polis Re specialists will help choose a policy your bank accepts — submit a request.

Sources

Insight Insurance: base tariff rates to its Comprehensive Mortgage Insurance Rules (2023 and 2024 editions); Bank of Russia: consolidated data for 2025 and statistics by insurer.