Why cancel your borrower insurance?
Terminating a home equity insurance provides several benefits. Indeed, we will mainly be authorized to subscribe to a less expensive proposal, obtain a range of appropriate guarantees and the procedures are amply facilitated.
Although the majority of borrowers choose the loan insurance offer presented by the bank, it is quite possible to make more savings by canceling the initial group contract while maintaining adequate or larger hedges. Moreover, since it becomes possible to terminate a real estate insurance contract, insurance companies have begun to lower their rates to remain competitive on the market. It is then possible to make a comparison of the different offers on borrower .
Termination of loan insurance was never so simple before. But with the implementation of the Hamon law, it is currently possible to cancel a mortgage insurance agreement at any time, during the first year following the signature of the subscription of the loan. In addition, the cancellation of a borrower insurance contract allows us to benefit from a coverage even more adapted to our situation as well as to our purchasing power. Because competition is in vogue in this area, insurance companies are constantly finding new ways to attract more customers with prices that are both interesting. It is then necessary to compare them thoroughly in order to find the best offer best adapted to its situation.
A law to facilitate termination
The Hamon law entered into force in 2014. It is consumer-related legislation with a particular focus on mortgage insurance. It strengthens the rights of regulars while allowing them to cash in more purchasing power. Its main measure is to give the possibility to any insured to change of insurance without expenses nor penalty.
The hamon law for mortgage loan insurance allows subscribers to cancel a borrower insurance agreement, without any justification or fees, provided that the agreement has more than one year of seniority. This is a provision that strengthens the first legislation of 2005 already allowing the cancellation of a convention without penalty or expense.