For over a year, the law allows borrowers of a mortgage to change their loan insurance to go elsewhere.
Delegation of insurance for all
Should I change the borrower insurance contract? This is a question that an owner who is paying off his mortgage is entitled to ask. Especially since the legislation is particularly rich on this subject with the adoption in January 2018 of the amendment Bourquin within the law Hamon dating from 2014. But what does it really contain? In fact, it incorporates rules about delegation of loan insurance that leaves the field open to a borrower to insure his credit outside the lending institution.
In this case, the borrowers at the head of a home loan, whether for a principal residence or for a second home, can make a delegation of insurance borrower in order to pay a monthly premium cheaper . And the amendment of Senator Bourquin introduces a fundamental rule with the retroactivity of the annual termination of a contract. Concretely, this means that all the owners can cancel their insurance borrower for a new contract whatever the date of contraction of the mortgage.
An annual termination with conditions
But to make a delegation requires all the same to respect certain requirements. The borrower must already succeed in negotiating terms of coverage at least equivalent to the original contract, but he must also inform his bank of his intention to change insurance at least 2 months before the anniversary date of the offer. ready.
This act will make it possible to claim from the banking establishment the free edition of the standardized Information Sheet (FIS) which summarizes all the guarantees of the original contract. It helps the borrower to present the conditions of the current contract so that the new quotes, issued by the insurers, line up while negotiating a more affordable pricing or even better coverage.
New borrower insurance to achieve substantial savings
Now, there are a lot of positives to changing mortgage insurance, especially because professionals can set quotes without any fees. The plaintiffs have nothing to lose financially to take steps and the bank of origin can not refuse a delegation of insurance.
In addition, insurers have identified commercial opportunities when opening the home loan cover market to competition. For that, they do not hesitate to break the prices of the contributions to bring the borrowers to realize several thousands of euros of savings over the total duration of their credit. The canvassing phase can be done by directly soliciting insurers, but it is also possible to review the conditions of its borrower insurance during a request for renegotiation of the mortgage or during a credit redemption.
Finally, finding a new insurer is not always a good operation. It is advisable to be vigilant for people who have suffered a deterioration of their personal or professional situation since the financing agreement and the signing of the insurance contract. In fact, a drop in income, the appearance of an illness or the exercise of a new job at risk can potentially increase the cost of insurance when preparing a quote.