Since January 1, 2018, all mortgage holders have the possibility to change borrower insurance every year on the anniversary date of the contract. However, in order to assert your rights, it is important to know the conditions of application as well as the procedure to follow to change insurance.
The Bourquin amendment: What should be remembered?
The Bourquin amendment is part of the Sapin 2 law. It was voted for the first time by the Senate on February 21, two thousand and seventeen and then rectified on January 1, two thousand and eighteen in order to broaden its scope. application to all real estate loans.
It allows borrowers to change the insurance of their mortgage once a year on the anniversary date of the loan. However, the debtor must give two months' notice and indicate his intention to terminate by registered mail with acknowledgment of receipt.
In order to be able to terminate your borrower insurance contract under the Bourquin law, it is essential that the loan has been taken out at least one year before. In addition, the borrower must ensure upstream that the guarantees of the future insurance contract are at least equivalent to the insurance which is the subject of the termination. For this, it is advisable to warn the creditor bank. The latter will then study the equivalence of guarantees based on a maximum of eighteen criteria. Depending on the conclusion of this study, the Bank will give or not its validation for the change of insurance.
How to choose your borrower insurance?
This law profoundly changes the loan insurance market. This is a great opportunity for insurance companies who market individual insurance contracts. For individuals, it is necessary to sort through all these offers. Even if the overall cost of insurance is a predominant indicator, the guarantees and the risks covered are also elements to be taken into account in making the best choice.
For those looking for a borrower insurance contract without an intermediary, it is recommended to read the general conditions before making a choice. Indeed, many insurers highlight the reduced cost of their contracts. But when you look more closely, it is to the detriment of the guarantees offered.
It is also possible to use the services of an insurance broker. The latter's mission will be to find the most competitive insurance offer in line with the personal situation of borrowers. This option remains the most secure to make the best choice.