Once the signing of the sales agreement has been made, you only have a fairly short period of time to take out a mortgage and borrower insurance. Taken by time, you may have signed a contract that turns out to be too expensive. Do not panic ! You can renegotiate it after a while to save money. Here’s how to do it.
Renegotiate your borrower insurance: the different possible solutions
Depending on the age of your loan contract, the solutions and conditions for its renegotiation are not the same:
- Borrower insurance for less than 12 months: the Hamon law authorizes you to terminate your contract;
- Borrower insurance for more than 12 months: according to the Bourquin law, you have the possibility of renegotiating your borrower insurance after the first year.
Note that if you took out your borrower insurance from 1er June 2022, the Lemoine law allows you to terminate it at any time, without waiting for the date of the first anniversary and at no cost.
The steps to follow to renegotiate your loan insurance
To renegotiate your home loan insurance, the first thing to do is to find a better contract that fully respects the equivalence of guarantees. To do this, do not hesitate to compete and ask for several quotes. In this step, the ideal is to seek the help of a borrower insurance broker.
Once the new insurance has been unearthed, send your bank its general conditions. Therefore, she has 10 days to respond. It can refuse the renegotiation, but only if the new coverage does not have equivalence in terms of guarantees.
After the agreement of your insurer, you can sign the new contract. All you have to do now is cancel the old cover by sending a cancellation letter by registered mail.
Attention ! To avoid any breach of cover, you must wait for the formal acceptance of the lending institution before terminating the old insurance.