When considering access to property, the first questions that arise is the mortgage , you will find many articles dealing with this topic on this site.
Then comes a second question: Real estate insurance, what is it exactly? Is it obligatory? This is what we will develop in this article.
What does the law say ?
Well, contrary to what many people think, French law imposes nothing on borrower insurance. This means that in France an individual is not obliged to insure a mortgage . The law and the regulations allow you to take out a mortgage without being covered by insurance.
What is happening in practice ?
When you take out a loan at a bank or a credit company, most of the time the bank advisor will not even ask you if you want to insure the credit. This is presented as an obviousness, even as an obligation.
Know that in fact the banker can not force you to cover the credit of your home with a borrower insurance since the law does not authorize it.
In practice and to our knowledge, no bank will grant the loan without being insured. Clearly this means that if you refuse to take out insurance borrower , the bank will not grant you your loan!
OUR OPINION and OUR ADVICE :
When a household goes into debt with a financial institution to access the property, the amounts are generally between 100,000 and 300,000 euros. It is obvious that considering the sums involved, the bankers make every effort to minimize the risk of non-payment . The simplest and most secure way is to insure the customer the credits they grant. While we can rebel against the practices of banks, but we must know that they take a real risk by granting loans.
Insurance “imposed” by banks generally relates to the risks of death and disability , but it is also possible to take other options such as job loss .
Also know that it is possible for a couple to cover the risk to 100% on each head or to leave it at 50/50 for example. In this case the survivor will have to repay only half of the sums remaining due.