Loan insurance is not compulsory but is necessary for your mortgage. It protects you and your family in the event of unforeseen problems. Renegotiating your loan insurance is, however, very interesting in order to add guarantees to the contract. To do this, you need to know the different steps involved. But why renegotiate your loan insurance? When should you do it? And how do you go about renegotiating?
Why renegotiate your loan insurance?
Loan insurance usually entails a significant cost for a loan recipient. Renegotiating your insurance contract can sometimes be very interesting. It allows you to lower the cost of your loan insurance and to extend your guarantees if you wish. In fact, there are two options available to you. You can renegotiate your contract with the bank or change banks altogether. Renegotiating loan insurance is a legal procedure. You can compare two quotes based on the amount calculated in relation to the capital borrowed. It is always worthwhile to find cheaper cover that offers the same guarantees.
When should you renegotiate your loan?
Renegotiating your mortgage insurance is now possible. This process has been allowed by law for some time now. However, there are certain notice periods that must be met. There are several times to negotiate your insurance. Initially, you can do this when you sign the finance contracts. This will allow you to choose another insurer. It’s worth noting that he French Hamon law allows citizens to renegotiate throughout the first year of a contract. They are therefore free to change their insurance if they are not satisfied with the contract. It is also possible to renegotiate your insurance after this first year. This is done every year when your contract expires, with a two-month notice period.
How to renegotiate your loan insurance?
Renegotiating your loan insurance is not very complicated, but it does require some important steps. It is therefore essential to discuss the matter with your insurer first if you want to keep your contract while benefiting from better guarantees. You should compare insurers with the help of a comparison tool in order to obtain targeted offers in a few clicks.
You can then take out the most attractive contract through a broker if necessary. The broker will be able to check the conformity of the proposed guarantees. Then you can send the contract to your bank.