The name “Loan Insurance” is known by the vast majority of future subscribers of a consumer credit or real estate.
What is borrower insurance? What are the best practices to follow in the event of a disaster? Who are the interlocutors to seize in case of litigation and / or disaster? Can we change borrower insurance?
This fact sheet from the National Institute of Consumption answers these questions.
Through this sheet, it will be analyzed in a comprehensive manner the mechanism of the credit insurance that applies to both consumer credit and mortgage.
However, some provisions only relate to insurance related to a mortgage.
As a reminder, some definitions:
Performance of services or goods of the same kind and under which the borrower pays the cost in installments over the life of the supply ” . The amount of credit must be more than 200 euros and less than 75 000 euros.
For residential and professional buildings and residential buildings:
their acquisition of ownership or the subscription or purchase of shares or shares of companies giving entitlement to their ownership, including when such operations are also intended to enable the carrying out of repair, improvement or maintenance of the building thus acquired,
their acquisition by way of enjoyment or the subscription or purchase of companies giving entitlement to their allocation for use, including when such operations are also intended to enable them to carry out repair, improvement or maintenance work on the property thus acquired ,
expenditure relating to their repair, improvement or maintenance where the amount of the credit is more than 75 000 euros,
expenses relating to their construction.
The collective contract says “individualized” :
it corresponds to the contract that the borrower subscribes in place of the insurance contract proposed by his lending bank. Even if it presents characteristics of individualisation (differentiation in terms of price according to the socio-professional category of membership ??), it remains a collective insurance contract.