Since 1 st January 2018, any borrower can change loan insurance even if they have taken out a mortgage for several years.
Home loan insurance represents a significant cost for the borrower. Fortunately, the latter can change coverage in order to find a less expensive one. Indeed, in many cases, taking out individual insurance with an external insurer can lead to considerable savings. How to change insurance.
Borrower insurance represents a large part of the total cost of the mortgage. Renegotiating your insurance can allow you to benefit from more extensive guarantees or a lower contribution. Thus, by comparing the offers, it is possible to make significant savings.
It should be noted that when granting credit, the borrower has the choice between the group insurance contract offered by the bank and individual loan insurance. Borrowers often opt for group insurance due to lack of time. However, this contract is not necessarily the most advantageous because it is based on a single pricing and a pooling of risks. The individual contract offers personalized pricing and guarantees allowing the subscriber to take out guarantees that he really needs.
The Hamon law authorizes the borrower to change mortgage loan insurance in the year following the subscription provided that the principle of equivalence of guarantees is respected. The subscriber must first find better insurance, in particular by using an online comparator. After having checked that this offer respects the equivalence of the guarantees, he will have to have this new contract validated by the bank. If the lender accepts, the borrower can subscribe to the new contract and terminate the old one. The termination letter must be sent by registered letter with acknowledgment of receipt 15 days at the latest before the 1 st anniversary date of the loan insurance contract.
The borrower who wishes to change insurance after 1 year will also have to look for an offer adapted to his profile and his needs while ensuring that it provides guarantees at least equivalent to the group contract. If this offer is accepted by the lender, he will have to send a termination letter accompanied by the new offer by registered letter with acknowledgment of receipt no later than 2 months before the anniversary date of the contract.
Do you want to use insurance delegation while benefiting from personalized support? In this case, it may be wise to use a broker. This professional, who plays the role of intermediary between borrowers, banks and insurers, has a large network of partners. This allows it to offer contracts adapted to the expectations of its customers. The broker takes care of all the formalities related to the change of insurance for you. It can also save you several thousand euros compared to the group contract. Thus, going through it will save you time and money.
Before using the services of a broker, do not hesitate to use an online comparator. This tool will give you an overview of the prices offered on the market. Its use is relatively simple since you just need to complete a quick form. You can then make several requests for free quotes. As a reminder, the total cost of insurance and the rate are not the only elements to be taken into account. If you decide to change insurance, you will also need to compare deductible and waiting periods, guarantees and exclusions.
