Even if mortgage loan insurance is not required by law, credit institutions can systematically require it as part of a mortgage loan. They just want to make sure that they can be compensated by the insurer in the event of default by the borrower.
Why buy mortgage insurance?
In the insurance code, mortgage insurance is known as "borrower's insurance" or also "death and disability insurance" DDI. Its objective is to enable the borrower to be covered within the framework of a mortgage loan, as its name obviously indicates. In the event of possible accidents or health problems that may prevent the borrower from repaying the loan on time, the borrower's insurance comes into play directly. It is also able to cover the borrower in the event of death. Thus, the property will revert directly to their heirs and it is the insurer who will take care of the full repayment of the mortgage. By subscribing to a mortgage insurance, the borrower will also benefit from a guarantee for his relatives while avoiding losing the property during the financing.
Overview of the lagarde law and the hamon law
While in the past banks used to force borrowers to take out their insurance, which is signed as part of a group contract and which is not necessarily at a competitive rate, today the Lagarde law gives them the freedom to choose their borrower's insurance themselves. Then, there is also the Hamon law which came to supplement the Lagarde law in order to offer borrowers the right to change their loan insurance up to one year after the signature of the loan offer. What's more, it also makes it possible to lighten the cost of credit and also to give a longer period of time to bring competition into play.
How to find the best creditor insurance contract?
The online mortgage insurance comparator is undoubtedly the simplest, quickest and above all the most effective way to find the best contract, as you are free to choose the one that suits you best. What's more, it's completely free and without obligation. This is a tool that allows you to simulate effectively to make a better choice. In order to proceed with the simulation, you need to enter some data. Once you have this data, the comparator can then select the most relevant offers that are likely to correspond to you.
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