After the mortgage, insurance borrower… In our second episode dedicated to the last conference in early February by the broker Prumotos, we mention here the mortgage insurance, especially the intentions of Internet users in 2016.
Why use a real estate insurance broker?
On the basis of 5,000 files filed between July 1 and December 31, 2016, Prumotos was able to determine the reasons why Internet users have applied for mortgage insurance on the site. So,
The majority of applicants (61%) wanted to compare borrower insurance when they bought real estate. For the record, the law Lagarde (2010) authorizes the delegation of insurance, that is to say the fact of comparing and signing offers of insurance other than those offered by banks. A condition? The guarantees of the new offer must be identical to the old one. The device has been completed by the Hamon law (2014), which allows to change the contract until 1 year after signature of the mortgage.
The second reason (23%) is linked to the repurchase of mortgage loans. When real estate rates are very low, as is the case today, households that borrowed a few years ago can renegotiate their home loans on more favorable terms. The operation can be done at their bank, but they will usually have to go to another institution. This is called credit redemption. This scenario involves the signing of a new mortgage, and therefore a new credit insurance.
The third reason is linked to the Hamon law (16%). This law allows the cancellation of insurance within one year after subscription of the mortgage.
The annual cancellation the borrower insurance, it is for soon
For the record, a third device was added to the legislative arsenal described above: the annual termination. Beginning next March, households with borrower insurance will now be allowed to cancel their policy on each anniversary date.
Contracts prior to March are not, however, put aside. They will be “cancellable” from January 2018.
Why compare mortgage insurance offers?
Not all borrowers realize this, but mortgage insurance is a significant cost. Hence the importance of delegation. By putting insurers in competition with each other, a comparator of mortgage insurance can give you better rates or better coverage.