Insurance borrower : what will change as of 1 January 2018

Insurance borrower accompanied obligatorily a real estate loan. It is a pledge of security for the banks, which can be compensate in case of default of the borrower. Borrowers can select or change the insurer through the delegation of insurance, some rules will change from 2018. Explanations.

From 2018 : to have recourse to the delegation of insurance all the years

2018 will mark the premature end of the amendment Bourquin. If this act provides for the possibility to change insurer every year, on the anniversary of the loan agreement — the loan agreements subsequent to February 2017 — the revision of the law Fir called Fir II, provides a function retroactive, which allows the same operation for all the loan contracts signed before this date (February 2017). However, the general principles of the delegation of insurance remain the same, namely, the obligation of the borrower to present at least the same benefits as those claimed by the bank in its group insurance. So, with this new law, borrowers will have the opportunity to request a change of insurer annually, to the maturity of their loan contract.

Loan protection insurance : how does it work today ?

Insurance real estate loan is a collateral often demanded by banks to protect themselves against disability, if any, of the borrower to repay the loan. In the event of death, inability to work, loss of autonomy, unemployment, among others, the bank can turn to the insurer to claim reimbursement of the credit. Insurance is a essential element of a mortgage. It is advisable to make a simulation insurance borrower to find the best offer on the market.

The banks offer a loan protection insurance built into their loan offer real estate. According to studies, 78 % of borrowers in real estate opt for this insurance group for the simplicity of the approaches and because of their lack of knowledge of other alternatives, including the delegation of insurance. However, 52 % of borrowers say that they want to change insurers. The delegation of insurance is a mechanism to allow borrowers to choose an outside insurance company, other than the one imposed by their bank. It is a device regulated by the law Lagarde, the law Hamon, and currently by the amendment Bourquin. The law Lagarde allows you to choose its insurer prior to the signing of the loan, while the law Hamon authorizes this change on the 12 months following its signature. The amendment Bourquin authorizes the change of insurer annually for loan contracts signed after February 2017 only.

It is important to choose insurance borrower, as the group insurance offered by banks is usually more expensive. An individual insurance, which is contracted in the framework of a delegation of insurance can guarantee a savings of up to 150 euros per month.