As we know, mortgage insurance is not legally required to obtain a mortgage. but it is required by banks. Borrowers do not have much choice.
On the other hand, they are not forced to accept the insurance offer of their bank. They can call on an outside agency. This operation is named delegation of insurance, it was instituted by the Lagarde law in 2010.
Why opt for insurance delegation?
For the record, the insurance offered by the banks are called “group” insurance. These are collective offers offered by banks to their customers with shared risks. And who says “collective offers” says “non-personalized offers”.
This is the interest of the insurance delegation. This solution makes it possible to benefit from a personalized insurance and thus, potentially more advantageous. Premiums will be calculated according to your profile (age, occupation, health, smoking or non-smoking…) and the remaining capital.
Important: your bank can not refuse an insurance offer delegated, provided that the guarantees of the new offer are identical to those it had originally proposed.
When to call for insurance delegation?
You have 3 possibilities:
- at the time of the negotiation of your mortgage ;
- within one year after signing the mortgage. During this period, you can cancel your contract in favor of another borrower insurance. This is a provision of the Hamon law ;
- on each anniversary date of the contract. After the one year period introduced by the Hamon law, you can change insurance as many times as you like.
A last tip: if you want to make a delegation of insurance, rely on the TAEA (effective annual rate of insurance) offers issued by insurers.
This indicator must appear on all insurers’ offers, as provided for in Article L311-4-1 of the French Consumer Code. Its standardized calculation method (ie the difference between the TEG with insurance and the non-insurance TEG) makes it possible to better compare the offers of mortgage insurance.