Since the entry into force of the Lagarde law on September 1, 2010, it is possible to delegate mortgage loan insurance. But the majority of French people did not yet know how to take advantage of this opportunity at that time.
Thanks to the Bourquin amendment voted and signed by deputies on January 12, 2018, policyholders have discovered the benefits of terminating borrower insurance. What are the advantages and tips to know before resorting to borrower insurance delegation?
Who Can Cancel Borrower Insurance?
In general, savers who have taken out individual insurance outside the credit institution (insurance company) can resort to a cancellation of mortgage loan insurance.
Of course, the bank will begin to scrutinize the level of coverage of the borrower’s outsourced contract before accepting the request. The guarantees of this individual insurance must actually be at least equivalent or superior to those of the group insurance contract offered by the lending organization.
Moreover, the Lagarde law (in force since September 1, 2010) which replaces the Murcef law obliges credit institutions to communicate all the necessary information on borrower insurance. With this information sheet, subscribers will be able to make the best possible choice.
The Advantages Of Real Estate Loan Insurance Delegation.
Many French people are still unaware of the real advantages of borrower insurance delegation, so they do not know how to take advantage of this formula. However, it allows to benefit from various significant advantages.
By delegating his home loan insurance, the subscriber can make significant savings (up to € 10,000) on the overall cost of his home loan. Individual borrowers will be the first to benefit.
To do this, they must remember to revise their contracts at least once a year on the same date as that of subscription of the contract. This strategy leaves the possibility of obtaining more advantageous guarantees without forgetting the possibility of saving a good sum on the borrower insurance product of your choice.
On the other hand, the banks are forced to follow the trend, because they do not want to lose their precious customers. In any case, the application of the Lagarde law and the Bourquin law (Sapin 2 law) can have a major impact on the annual performance of lending organizations.
Take Advantage Of The Borrower Insurance Delegation.
It is possible to save up to € 10,000 on the total of your mortgage thanks to the termination of mortgage insurance. The problem is that the French are aware of the existence of this measure, but they are less likely to know the key to take advantage of all the advantages it offers.
In any case, it is important to consult an online comparator (free if possible) in order to find the best borrower insurance offers available on the market. This will make it easier to find a product suited to their needs, their profile and especially their budget.
It is preferable that the guarantees offered by the borrower insurance are at least equivalent to those of the group contract taken out with its usual banker.
You must take the time to carefully read the “mortgage loan insurance” information sheet (introduced by the Lagarde law in September 2010) so as not to be mistaken about the choice of product. The FSI document will also do the trick. Obviously, seeking the advice of a broker is highly recommended.