Mortgage insurance (known in France as l'assurance de prêt) if usually requested by a bank when you take out a loan to buy property. Such policies provide you, your family and the bank with peace of mind in case the unforeseen happens during the loan period.
Your mortgage insurance rights under French law
The loi Lagarde of 2010 gave borrowers (amongst other things) the freedom to choose a mortgage insurer different from the bank providing the mortgage. The loi Hamon of 2014 gave borrowers (amongst other things) the right to change their mortgage insurer during a policy's first year (giving 15 days' written notice). The loi Bourquin of 2018 gave borrowers the freedom to change their mortgage insurer at any time during the period of the loan, as long as this was done to coincide with the policy's annual renewal and after having provided 2 months' written notice.
These reforms have liberated the mortgage insurance industry in France and enables mortgage-holders to shop for a policy that best meets their needs and circumstances.
Types of mortgage insurance cover
PREVENCIA works with several leading companies in the mortgage insurance market. This allows us to find the best solution in terms of guarantees and prices for our customers. The following risks are ones that your bank may require you to find insurance cover for. In most cases these individual risks are ones that you can opt-in for additional cover, at any time during the insurance period's term. (This varies from policy to policy but we can guide you through the options.)
- Death or total loss of independence: the entire balance of a mortgage can be covered in one step.
- Temporary but complete incapacity or permanent and complete invalidity: your insurance will step in to settle all or part of your monthly loan repayments, depending upon the type of policy you have taken out. (Accident or illness may render you unable to work for a short period of time or it may require you to change your type of work long-term.) You can also opt to reduce your monthly premiums by increasing the period of time between injury and the moment when guarantee payments kick in.
- Additional options:
- you can opt to have additional cover in case of non-hospitalisation;
- you can take out additional cover if you work in the medical sector, limiting the impact upon your circumstances;
- policy add-ons are available that will also provide you with day-to-day practical assistance as a result of illness or injury.
We can also find policies for customers with pre-existing health conditions and, even, for customers who practice extreme sports.
Mortgage insurance + add-ons = a hybrid insurance that can buy you peace of mind
As you can see, some of these options combine the advantages of mortgage insurance with some of the benefits of life insurance. They are designed to give you and your family peace of mind whilst you are committed to repaying a property loan. It's one thing to borrow money to buy a property. It's quite another when than property is also your family's home.
PREVENCIA is well-placed to help you find a mortgage insurance policy that matches your requirements and circumstances. Contact us to see what is available.