From September 1, you can cancel your home loan insurance free of charge. This measure is revolutionizing the borrower insurance market.
Article written by
Posted
Update
Reading time : 1 min.
Termination at any time, removal of the health questionnaire under conditions from a certain amount, the text adopted at the start of the year comes into force in full on Thursday 1 September. From the name of the deputy Agir who carried it, Patricia Lemoine, the text is supposed to allow fairer, simpler and more transparent access to the borrower insurance market. The objective is also to introduce more competition in the banking and insurance sector to lower costs for the consumer.
The law opens up the possibility of changing borrower insurance, free of charge, at any time, and no longer just on the anniversary date. This is a guaranteed gain for the customer. The medical questionnaire is removed for mortgages below 200,000 euros per person (400,000 for a couple) and whose term occurs before the 60th birthday of the borrower. The period of the “right to be forgotten” for cancers and other pathologies is reduced from ten to five years. Until yesterday, the “right to be forgotten” allowed the people concerned to no longer have to declare their illness to their insurer ten years after the end of their therapeutic protocol. We now go to five years.
Today, many loans are refused for important medical reasons. The entry into force of the law will facilitate the process for many borrowers and owners. Contesting the decision of an insurance company remains very complicated. This is a major business: the borrower’s insurance market is currently valued at nearly ten billion euros in premiums per year and concerns nearly seven million homeowners who have an outstanding loan. For those who are lucky enough to own real estate, purchasing power also goes through this.