Am I obliged to take out home insurance from my bank?

Home loans have rarely been as advantageous as they are now. Interest rates can indeed trade today below 1%, and even at 0.85%. Never seen ! And inevitably, banking institutions are diversifying and catching up with other services, in particular by offering their own home insurance… Does the borrower have the choice of refusing to take out this type of contract with his bank or is he on the contrary obliged to accept it, under penalty of not obtaining his loan?

Can I refuse the home insurance offered by my bank?

Congratulations, you have made an offer on your dream apartment or house and it has been accepted by the landlord. Serious things can finally begin. The next step is to obtain a mortgage, preferably at low rates, through a broker or by making an appointment with different banks. And if this famous loan is granted to you, your banker will of course tell you about the insurance covering the loan and the home insurance that you will need to sign as soon as possible… Stop!

Like the insurance linked to the loan, the home insurance can be taken out elsewhere than with your bank. Sites such as now allow you to compare the rates of the various insurers on the market as well as possible and choose the contract best suited to your needs. The latter can indeed prove to be much more interesting year-round than that offered by the account manager of the bank that grants you the credit. And if the insistence of the advisor may suggest that the subscription is a mandatory condition to obtain the bank loan, this is absolutely not the case: you do have a choice.

How do I cancel the home insurance taken out with my bank?

Despite this non-obligation, it regularly happens that borrowers decide – out of ease or in fear of not obtaining the loan at the desired rate and on time – to accept the home insurance contract from their bank without flinching. And then to regret it for many years… Don’t panic: it is easily cancellable, free of charge, since the Hamon law, in force since January 1, 2015.

Before being able to change home insurance, you will nevertheless have to stay at least one year with your “bankinsurer”. Once the anniversary date of the contract has passed, termination finally becomes possible, at any time. Your new insurer will also be able to take care of all the administrative procedures for you and ensure that the old and the new contract follow one another, without there being any waiting days. Finally, the former insurer will take care of reimbursing you all the advanced premiums, and this on a pro rata basis.

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