Since January 1, 2018, the loan insurance change is allowed each year under the amendment Bourquin. For French people holding a mortgage, this legislative development can save several thousand euros, especially if the credit is relatively recent.
Annual termination of the insurance of a home loan
In principle, the change occurs on the anniversary date of the contract. On paper, the date to remember is simple. But what contract are we talking about? The answer will vary depending on the initial choice of borrowers. Indeed, when looking for real estate financing, borrowers pay attention to the interest rate contracted but also to the amount of the borrower insurance. Several options are available to them: group insurance or insurance delegation.
For the bundle, buyers take out borrower insurance directly from the bank or its specialized subsidiary. In the case of a delegation, it is up to them to look for a better offer from an alternative insurer. Not to mention, that customers benefit from a period of twelve months, thanks to the Hamon law, to change their offer if a group contract was initially signed. It is good to keep in mind that between these two possibilities, the total amount of insurance can vary from single to double.
Group offer, delegation, Hamon law: which date should we remember?
Regarding the change of loan insurance, this choice will be important because the date to be taken into account may vary. If the group insurance offer has been selected, the date will correspond to that of the signature of the loan agreement. On the other hand, if the choice is made on the delegation of insurance, it is necessary to take into consideration the date of signature of the insurance contract.
Finally, if during the first 12 months of the credit (Hamon law), the borrowers made a change of insurance, it is the date of the new contract that prevails. In theory, these 3 practical cases cover all the situations of the borrowers. Nevertheless, it is good to check in the insurance contract that the date of December 31st should be retained as the date for a termination.
In practice, it is significant to anticipate this date because the steps to change insurance through the amendment Bourquin may require time. The alternative insurer can ask for supporting documents or a health examination if the borrower encounters health problems, for example. In addition, the bank at the origin of the loan must be notified two months before the effective date.