Borrower insurance as part of a mortgage is a constrained expense that can be minimized by applying the principle of delegation. By comparing the offers on specialized sites, you have access to much cheaper offers than that offered by the lending bank. One of the essential points to check is the time taken to take over the guarantees of the mortgage loan insurance.
Delegate borrower insurance
The law allows you to freely choose the insurance contract which comes to cover your home loan. Don’t deprive yourself of significant savings! Competitive bidding via a home loan insurance comparator allows you to make a average gain of €15,000.
Remember that borrower insurance is the first lever to reduce the cost of your mortgage. While the rates are above 3% in March 2023, delegate loan insurance is one of tips for staying under the attrition rate in 2023.
The benefit of the borrower insurance delegation is accessible a posteriori. Take advantage of the Lemoine law to save in 2023 et preserve your purchasing power. As a result, you offload your mortgage cost by thousands of euros over the remaining repayment term.
Understanding Home Loan Insurance
The importance of insurance in the context of a mortgage is crucial. To guarantee the good end of the loan in the event of death, disability or incapacity of which the insured would be a victim, the bank demands the borrower insurance subscription. Due to the large sums involved, the lender takes maximum precaution and imposes insurance as pledge of security both for him and for the borrower.
The main guarantees of borrower insurance
Home loan insurance includes several guarantees intended to cover specific risks:
- the death benefit : the capital remaining due is fully reimbursed to the bank if the borrower dies.
- the PTIA guarantee (Total and Irreversible Loss of Autonomy): combined with the death guarantee, it intervenes in the event of 100% dependence following an accident or illness.
- the warranty HERE (Temporary total incapacity for work): the insurance reimburses all or part of the monthly payments in the event of sick leave or accident.
- THE garanties IPP (Permanent Partial Disability) and IPT (Permanent Partial Disability): in the event of prolonged absence from work, one or other of these guarantees comes into play depending on the degree of disability.
The death and PTIA guarantees are the basic guarantees of any borrower insurance contract. They are supplemented by incapacity and invalidity guarantees according to the requirements of the lender according to your profile. Any borrower in professional activity must subscribe to the ITT guarantee real estate loan insurance.
The job loss guarantee is the last protection that can be taken out in addition to the other guarantees. The benefit of this warranty is low due to its high cost and reduced conditions of implementation (only accessible to unemployed CDI borrowers for economic reasons).
Can we choose the guarantees of the borrower insurance?
As a borrower, you have no choice of guarantees. The bank gives you a Standard Information Sheet (FSI) which lists all the guarantees required to grant you the financing.
The regulations require that the delegated contract present at least the same guarantees than the bank insurance contract: we are talking aboutequivalence of level of guarantees. You have every opportunity to reinforce the coverage required by the bank to optimize your protection. Be accompanied by a home loan insurance broker to select the contract adapted to your situation at the best price.
Borrower insurance: difference between waiting period and deductible period
What is the loan insurance waiting period?
Coverage of home loan insurance is not immediate from the date of subscription. Like any insurance contract, borrower insurance comes with a waiting period which corresponds to the number of post-subscription days during which you are not not covered. In terms of home loan insurance, the waiting period varies between 1 to 12 months. During this period, you cannot request the implementation of guarantees, even in the event of a claim.
The waiting period is specific to each insurer and applies to all guarantees. Some service providers remove the waiting period in the event of an accident resulting in a total and irreversible loss of autonomy.
What is the deductible period in borrower insurance?
After the waiting period, the grace perioda period during which you are not not compensated following an accident. In general, the grace period applies only to ITT guarantees and loss of employment.
The grace period of the ITT guarantee varies 30 to 90 days, or even 180 days. This means that a work stoppage of less than the number of days indicated in the contract is not covered by the insurance. The shorter the delay, the higher the premium. Some insurers let you choose the deductible period. It is advisable to arbitrate according to your professional situation and your budget.
The grace period for job loss cover is on average 90 days and the duration of compensation between 18 to 36 months.
THE deadlines for taking charge of a claim in borrower insurance depend on each contract. It is important to know the deductible period to fully understand the extent of the guarantees and avoid any disappointment when you declare a claim and expect compensation. Many disputes in borrower insurance are due to a misunderstanding of the insured on the conditions of support.
To compare offers effectively, carry out home loan insurance quote. For each contract, you have free access to all information regarding warranties, including lead times.
If you are not satisfied with the terms of compensation of your current contract, change mortgage loan insurance with the Lemoine law 2022. The broker Magnolia.fr takes care of all the administrative procedures for you and allows you to subscribe quickly and simplyborrower insurance adapted to your profile at the best price.
