Loan insurance: The annual renegotiation validated!
You can now cancel your home loan insurance every year, on the anniversary date of your contract.
When borrowing from a credit institution, it is necessary to take out borrower insurance. This insurance is a security for you and your family but also for the credit establishment.
Indeed, the credit institution will be protected in the event of default of payment; and you and your family in the event of a life accident.
Right to choose the establishment which insures your mortgage
You have two choices: either you accept the insurance contract from your bank, or you find an insurance contract with an insurer.
You should know that the insurance contract offered by your bank is a group contract, that is to say that it is a borrower insurance with a single price schedule, and sometimes with unsuitable guarantees to your profile.
The individual insurance contract is established with an insurer and will allow you to have personalized guarantees, but above all to benefit from a lower rate.
The Constitutional Council confirmed, on January 12, 2018, the principle of terminating its borrower insurance, every year. Indeed, this right simply offers you the possibility of finding a better contract, depending on the guarantees and the price. This principle applies to all borrowers, Arwind & Mae will support you in this change and will help you in these steps.
Simplifies your steps to change your borrower insurance.
The Lagarde law allows you to take out your borrower insurance with the insurer of your choice, provided that you respect the equivalent guarantees of your current contract.
Before 2010, it was impossible to take out insurance other than that of your bank. With the Hamon law , it has been possible since 2014 to change the insurance contract for the first 12 months of the subscription. You must also respect the equivalent guarantees of your current contract and 15 days notice. The bank has 10 working days from the receipt of the new insurance contract to formalize its acceptance or refusal.
With the Sapin 2 law and the Bourquin amendment , it is now possible to terminate your mortgage loan insurance every year on the anniversary of the contract. However, there are a few steps to follow.
First, Arwind & Me will assist you in the search for a new contract while respecting the equivalent guarantees of your current contract. It will therefore be necessary to inform the amount of your loan, the duration, the rate but also the current guarantees of your contract.
Once the new contract has been found, you will have to join your bank, within two months before the anniversary date of the signing of the loan, your signed membership certificate, your request for termination by registered letter with AR as well as the conditions. general.
The bank has 10 working days from the receipt of the new insurance contract to formalize its acceptance or refusal.
Cancellation: can my bank refuse it?
If the bank refuses your request, its reason must be admissible, that is to say that the refusal must relate only to the criteria of equivalence of guarantees. Under article L 312-9 of the Consumer Code, any decision to refuse by the lending institution must be justified in writing.
The new insurance contract would then be canceled and free of charge. You will be reimbursed for any monthly payments already taken.
Save money: but at what cost?
Bourquin law allows borrower insurance to be changed every year. This annual termination may not incur costs relating either to the substitution or to the termination under Article L313-32 of the Consumer Code.
You can therefore change insurance several times, if it is financially advantageous.
Indeed, if you wish, Arwind & me can study your request every year on the anniversary date.