Insurance of property loan: points to be proved

When some money is borrowed to construct or to buy an accommodation, the loan is generally matched of an insurance the cost of which can turn out to be more or less high according to your situation. However, the rate of your contract in insurance homebuyer’s loan is not the only element on which it is necessary to be vigilant.

Let us pass on the questions of financial solidity of the insurance company, most known signs relatively sure on this point. As for offered guarantees, all insurance are more or less copied on the same model today.
There remain however some points not to be neglected:

Indemnity

she should not be calculated according to the loss of income. Some contracts of insurance of loan indeed envisage that in case of complete temporary working inability (ITT) or of complete permanent disability (IPT), the indemnity of the underwriter will be calculated according to the loss of income.

In that case, if you are a wage earner and that you benefit from a collective labor agreement and/or from a regime of foresight supplementing your income, you will be supposed not to have lost income and therefore the underwriter will not take care of your expiry dates.

Contribution

For the same level of guarantees, rates differ a tremendous number of a company in other one. Do not hesitate to compare the cost of insurance borrower on all length of the loan. Indeed, contribution can vary in the course of time, and if insurance seems economic at the beginning of the contract, her can very well become priceless ten years later.

Freedom of choice

during the constitution of the file of loan, your banker is very indeed going to “recommend “you to sign his own contract of insurance. However, what he does not say to you, it is that he has the right not at all to impose him on you (it is forbidden by law).

Even if in facts, he will be able to make you a kind of blackmail in the refusal of loan if you do not take its insurance. But in case, do you really want to make friends during 20 years in an establishment which employs practices such? In any case, and whatever are his arguments, if you are less than 40 years old, resist and ask for other estimates of insurance borrower to other companies. Benefit can represent several thousand euro on all length of the contract.

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