In premium position for mortgage insurance

There are many factors that dictate the cost of premiums on your French mortgage insurance, including lifestyle and health. An expert answers some of our readers’ common questions, and also rounds up upcoming law changes that affect your chances of finding a cheaper insurer

Is it obligatory to buy insurance for a French mortgage?

An insurance called Assurance Emprunteur is compulsory. There are three parts to this insurance: life assurance (called death insurance in France), PTIA (permanent and total incapacity insurance) and ITT (total temporary incapacity to work).

For a couple, the insurance is generally split between them. If, for example, both earn a similar amount, you can take insurance cover for 50% each.

If there is a significant difference in incomes or one borrower does not work then you can insure the main income earner for 100% and choose a lower percentage for the other borrower i.e. 50%, 25%. It is possible to take redundancy cover too if you wish.

For a mortgage, must we take the life assurance offered by the bank? Will they make it difficult for us if we don’t?

The insurance you take to support your mortgage does not have to be with your lender (Loi Lagarde), but your lender must check and agree that the insurance you are arranging covers ...

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