Ask for a delegation of insurance, what are my rights?

Yes, Since September 2010, the date of implementation of the Lagarde law, you can subscribe to another mortgage insurance contract that is offered by the bank financing, choosing your insurance company. This device allows many borrowers to reduce the cost of their insurance and thus reduce the overall cost of their mortgage. Knowing the market very well, we can help you find the best loan insurance for your home loan.

The changes brought by the Lagarde law

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Introduced on September 1, 2010, the Lagarde law allows real estate borrowers to take out other loan insurance than that of the lending bank from the insurer of their choice. The bank is nevertheless entitled to refuse a delegation of insurance if the contract found by its client does not present guarantees that are at least equivalent to those of the group insurance contract that it has offered. In case of refusal of insurance delegation, however, the latter is obliged to give reasons in writing. Thanks to the possibility of putting the insurance offers of different insurers in competition with the bank’s proposal, the delegation of insurance can allow the borrower to reduce the cost of his loan insurance and thus save thousands of euros on the overall cost of his home loan. This measure aims to open the credit insurance market but has not had the desired result so far as most borrowers are reluctant to delegate their insurance for fear of having their credit application refused by the bank.

The free choice of your borrower insurance


You have the right to choose your mortgage insurance. But before talking to your banker, it is best that you ask him for a quote for real estate. This one will serve you as base in your search for a contract with guarantees at least equivalent. Also, the bank is not entitled to change the conditions and rate of the offer it has issued to you. You can then compete with insurers’ offers using an online loan insurance comparator. To make your process easier, you can use the service of the loan insurance broker: it will help you find the cheapest contract on the market that best suits your needs.