Regarding home loans, borrower insurance weighs very heavily in the balance. However, if the offers of the banks are often billed at a high price, it is possible to save several thousand euros by turning to an external specialist operator.
Banks in force
Although borrower insurance is not required by law, it has been made compulsory by banks to guarantee the coverage of your monthly payments in the event of death, disability or even loss of employment. While this market is estimated at 6 billion annual contributions, lending institutions hold more than 85% of contracts, according to a study published in June 2020 by the specialized broker Sécurimut (a subsidiary of Macif). They are in a strong position, since this protection is offered at the same time as the loan offer.
For a mortgage at a fixed rate posted at 1.40% over twenty years, a couple in their thirties must generally add more than 0.50% under the TAEA (annual insurance equivalent rate). A loan of 200,000 euros used to finance a house therefore amounts to more than 249,000 euros, including 20,000 of insurance.
Three successive laws
To lower the bill, the legislation has however repeatedly encouraged financial players to submit to the game of competition, as explained by Jean-Michel Courtant, development director for Macif-Mutualité. “In 2010, the Lagarde law imposed freedom of choice by allowing consumers to opt for borrower insurance outside the lending bank, when taking out credit. If you missed this opportunity, you then have one year, from the date of signature, to substitute the protection taken out by another contract for equivalent guarantees, under the Hamon law of 2014. Beyond this deadline, it is is the Bourquin amendment to the Sapin II law of 2017 which allows you to change insurance each year, on its anniversary date. "
From theory to practice, however, there is still a chasm still not filled ...
Sticks in the wheels
In 2019, a study carried out by Le-Partenaire.fr affirmed that 52% of borrowers were unaware of the procedure to follow to delegate borrower insurance, while 75% of those polled thought they would save less than 5,000 euros in this way. . For its part, the 2020 Sécurimut survey revealed that one in six people renounce the Hamon substitution and one in five that made possible by the Bourquin amendment.
Between the lack of information on the anniversary date, the late and incomplete response times from the banks or their objections, Jean-Michel Courtant denounces an obstacle course to assert his right to substitution of cover. To facilitate the procedure, the players in the sector advocate the establishment of an annual information letter recalling the anniversary date of the contract and the possibility of changing it.
The French Banking Federation, for its part, confines itself to affirming that "the banks apply the texts which provide for the free choice of borrower insurance under the control of the ACPR [the financial policeman]" and relies on the study. soon expected from the Financial Sector Consultative Committee (CCSF) with all stakeholders, to give "an objective and shared vision of the real situation".
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How to change contract?
The borrower insurance delegation request must be sent to the bank by registered mail with acknowledgment of receipt. Typical models are offered by associations and insurers. Also remember to attach the standardized information sheet of the desired new contract to save time.
But beware of delays: during the first year of subscription, the procedure must be done no later than 15 days before the term. Beyond this deadline, the law requires you to act in the 2 months preceding the anniversary date of your insurance coverage. That said, to compensate for possible delays in treatment, specialists recommend doing it 3 to 4 months in advance.
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