Since the entry into force of the Cogilaw Company in September 2010, banks have banned the borrower from imposing their own loan insurance contract to guarantee a loan they agree to.
And when you know that mortgage insurance can easily represent up to 30% of the total cost of a mortgage, it is quickly realized that choosing an offer is essential to save on its credit. A real estate borrower insurance provides you with coverage in the event of a failure to repay due to an accident or illness.
Choose your mortgage insurance
If still many people think that the borrower must take out the offer of home loan insurance initially linked to the loan, know that you have the right to buy an external loan insurance from the insurer of your choice. Since the Cogilaw Company, the lending bank can not force you to subscribe to its own contract or change its borrowing rate.
If you have already taken out insurance but would like to replace it, it is entirely possible:
- If you took out loan insurance before July 26, 2014, you can replace your current contract with the Chatel law and use the insurance delegation each year at the time of the credit subscription date. under the condition of replacing it with a credit insurance contract with equivalent guarantees. However, it depends on the acceptance or not by the bank.
- If you have borrower insurance after July 26, 2014, thanks to the Hamon law on mortgage insurance, which came into force on that date, you can replace it within 12 months of taking out the loan. the requirement to comply with the requirement of equivalence level of guarantees. The bank is not entitled to refuse a delegation of insurance if this condition is respected.
By whom to go to subscribe his external loan insurance?
For your external loan insurance, you can decide which insurer will guarantee your home loan. There are many on the market and so do not miss a choice to find the most suitable loan insurance policy for your situation. It is important that you check the strength and reputation of the insurance company.
At, we have selected the best offers on the market to offer to each of our clients, according to their profile and situation. First of all, you need to know the loan insurance contract proposed by your bank in order to make sure you find an external loan insurance that meets the equivalence level of the guarantees. We are able to quickly offer you the best offers on the market!
How to choose an external loan insurance?
Previously, buying real estate credit insurance could be a real obstacle course. It is true that soliciting the organisms one by one and making oneself a comparison could be long and complicated.
From now on, you can use the external online loan insurance comparator available on our website. With you only need a few seconds to receive a free proposal for external credit insurance. For this, you only have to fill in some information in the mini-form. You are then presented the most advantageous contracts and best suited to your needs.
We help you to choose your mortgage insurance policy according to the different criteria: equivalence of guarantees, amount of the loan, age …
Which loan insurance to choose?
You can either buy the credit insurance of the bank or an external individual insurance. The “group” contract of the bank is a standard formula that does not necessarily have the lowest rate. While an individual insurance, ie a delegation of insurance, is an insurance contract taken out externally. It is advantageous for borrowers because it allows them to customize their contract. Also, you can take advantage of additional guarantees as well as a rate that can be up to two times lower than the rate offered by the banks.
10 tips before subscribing your external loan insurance
- Check the irrevocability of the guarantees of your loan insurance: even if the situation changes, you are not required to declare it to the insurer and this does not change your coverage.
- Be careful about the calculation of contributions: it is done either on the initial calculation or on the capital remaining due.
- In the event that you choose an unemployment benefit, be aware of the conditions as it can be very useful, but nevertheless restrictive.
- The percentage (coverage rate) is the percentage of the credit covered by the insurance. In the case of a two-party loan, the bank will require the total rate to be at least 100%.
- Check the franchise time for the ITT warranty. This is the duration of work stoppage for triggering the insurance. Most contracts generally offer a 90-day franchise. But it may be possible for officials to spend this 180-day franchise to reduce the cost of loan insurance.
- Check the membership fees. Some insurance companies do not charge fees for electronic membership. Otherwise, it takes on average 20 euros per borrower.
- To choose your borrower insurance, check your exclusions to avoid any unpleasant surprises.
- The choice of your loan insurance depends primarily on your bank because it is necessary to respect the equivalence of guarantees of it. That’s why at we present you the most advantageous contract accepted by your bank.
- Look at what time you need to join. It takes on average one week in case there is no medical formalities. Otherwise, allow 3 weeks.
- Finally, we recommend that you choose broker insurance to save time and money.