It sometimes happens that you want to cancel your borrower insurance in order to subscribe to another, more advantageous home loan insurance offer. Find out here how to cancel your borrower insurance !
Why cancel your borrower insurance?
Borrower insurance is an insurance product providing coverage to a borrower on their property loan. Today, it is estimated that approximately 80% of borrowers still have the insurance contract offered by their bank. This insurance is called a group contract . This contract allows a single rate for different borrower profiles. This allows risks to be shared. But, this also involves a fairly expensive insurance contract. By canceling borrower insurance and changing insurance contracts, it is possible to save up to 50% on borrower insurance . The contracts offered by other insurance companies will be contracts adapted to the borrowers’ profiles and therefore much cheaper.
In addition, pricing policies vary between different insurers depending on borrower profiles. Thanks to the Hamon law since 2015, it is possible to change mortgage insurance in the first year of the loan. The Bourquin amendment was put into force in 2017 which allows you to change borrower insurance on each mortgage anniversary date. These consumer laws allow the insured to cancel their home loan insurance in order to take out a new, less expensive one with better guarantees. It is therefore advisable to consider canceling in order to obtain insurance that is more financially attractive and provides better coverage .
How to cancel your borrower insurance?
When the decision is made to change insurance, you must therefore cancel your borrower insurance . But, before that, it is important to choose the cheapest possible insurance with equivalent guarantees or with better guarantees . It is important to compare carefully, because there are many players on the loan insurance market. Some insurers are better on a particular borrower profile, expatriates for example. To best compare and obtain prices for the best insurance contracts on the market, simply make a comparison on the Compareil.fr comparator. In a few simple clicks, it is possible to compare and subscribe to a new insurance contract.
Once the insurance contract is chosen, simply subscribe to a proposed insurance contract . In order to terminate the current borrower insurance, simply complete a termination letter detailing the date, the current contract number and respect the notice period. The notice of termination of property loan insurance differs between the Hamon law and the Bourquin amendment. Once the termination letter is written and signed, simply send it by mail to the lending bank by registered mail with acknowledgment of receipt, adding the new insurance contract in the mail. Upon receipt of the letter, the bank must process the termination request and respond favorably or not.
For the termination to be accepted and the change of insurance to be put in place, you must respect the notice period , write a correct termination letter and present to the bank a new insurance contract with at least equivalent guarantees as the previous contract.
