Generally taken out with the lending bank, borrower insurance can however be chosen freely. It is the delegation of insurance. This solution allows the borrower to take advantage of more personalized coverage while achieving significant savings. This process can also be done at any time in the life of your credit. Here’s how to do it successfully.
How to assert your right to delegation of insurance with your lending bank?
The lending institution cannot refuse another loan insurance contract if it respects the concept of equivalence of guarantees. In addition, he does not have the right to use the delegation of insurance as a pretext to motivate an increase in the interest rate of your mortgage.
According to the 2010 Lagarde law, insurance delegation is a right for all consumers. All you have to do is remind your banker to make him accept the process. You can apply for it:
- before signing the loan offer,
- at any time until 1er anniversary of your mortgage,
- on each expiry date of your insurance contract.
In addition, the insurance delegation contract generally covers better than that of the lender. It therefore offers him additional security.
In addition, your bank adviser has a duty to advise you. Also, if you have found a better contract, he must offer you to join. In any case, if your lending institution does not respond to your request within 10 days, it is liable to a fine of 3,000 euros.
What are the steps of insurance delegation?
To proceed with a delegation of insurance, you must respect the following three steps:
Choose an external contract respecting the equivalence of guarantees
The first step in delegating your borrower insurance is to find the best contract. Refer to the standardized information sheet indicating the list of guarantees required to verify the equivalence of guarantees. Take the time to play the competition. For this, you can use the services of a loan insurance broker or an online comparator.
Apply for membership
When you have found an insurance contract that offers better value for money, start the membership application. You must obviously obtain the agreement of your lender before taking out a new contract. To do this, you must give him the standardized information sheet from your new insurer. Then you can proceed with the subscription by sending all the requested documents and answering the medical questionnaire.
Send the new contract to their lending bank
Once the file for your new borrower insurance contract has been completed and validated, your new insurer will give you your insurance certificate. The last step of your insurance delegation therefore consists in sending this document to your lending bank in order to obtain its final agreement.
Your banker has a legal period of 10 days to respond to you. He will then analyze the equivalence of guarantees between the two contracts and check the supporting documents. Once the approval has been received, the lending institution modifies your credit agreement or integrates it into your loan offer depending on whether it is a change of coverage or a first insurance.
How to choose a loan insurance outside your bank?
The objective of insurance delegation is to reduce your loan insurance costs, which can represent up to 30% of the total cost of your credit. Also, in addition to the credit equivalence, you must find out about:
- the amount of the contributions,
- the amount of the membership application fees,
Also pay attention to the following points:
- exclusions from the contract,
- the membership deadline.
In any case, it is very important to scrupulously read the general conditions and the specific conditions of the new contract.