With savings of €15,000 on average over the life of your property loan according to UFC-Que Choisir magazine, changing borrower insurance by switching to insurance delegation (individual contract) can be interesting in the current context of inflation.
Conditions to be respected
Beginning in September 2022, the Lemoine Act allows an owner to renegotiate borrower insurance at any time during the year, provided they offer their bank the same guarantees as the old contract.
To this end, the Consultative Committee for the Financial Sector (CCSF) compiled a list of 18 guarantee criteria. “Credit institutions can thus choose a maximum of 11 of these criteria to create their list of equivalence that their borrowers will have to respect in the event of termination of insurance,” explains Assurly, a company that specializes in changing credit insurance.
Compare offers on the market
The proliferation of insurers since the opening of the industry to competition has benefited consumers looking to save on credit insurance costs. It is possible to find a personalized offer tailored to your needs and budget.
Make arrangements with your bank
When you are already an owner, it is possible to re-negotiate the insurance taken out with your original bank to benefit from a contract adapted to your profile. “Before starting the process, it’s good to know that banking institutions have little flexibility in the contracts they offer their customers,” says Assurly. In fact, these contracts are generally standardized and not very flexible. »
Take action with your new insurer
Banks require borrowers to always have credit insurance. Therefore, it is absolutely necessary to take out a new insurance policy before canceling the old one. “The insured must first take care to compare the details of the offers and guarantees to match their actual needs,” Assurly points out.
The insurer will then study the file and communicate its decision. If the answer is positive, the insured person will then receive an insurance confirmation for the new contract, also called a “membership confirmation”, which he will then hand over to his bank.
Previously, in order to obtain a borrower’s insurance policy, it was necessary to fill out a health questionnaire. Since the entry into force of the Lemoine Law, this questionnaire no longer applies to loans of less than €200,000 that mature before the borrower turns 60.
Terminate the borrower’s insurance contract
Final step: terminate your old policy after completing all procedures with the new insurer. The notice must be sent by registered letter to the former insurer within 15 working days.
In order not to interrupt coverage, even temporarily, the start and end date of the contract must coincide so that two contributions do not have to be paid.