You borrow from a banking establishment for your real estate project, you will also have to resort to mortgage insurance, also called borrower insurance. It covers you in the event of death, disability or incapacity and constitutes an essential guarantee for obtaining your mortgage.
It is possible to subscribe to the one offered by the bank, but it is rarely the most interesting. So, to achieve savings that can amount to several thousand euros, it is not uncommon to call on the services of a mortgage insurance broker.
Role of the mortgage insurance broker
Since the Lagarde law of 2010, any borrower using mortgage loans is free to choose their loan insurance from the establishment of their choice, provided that the guarantees offered are at least equivalent to those of the bank granting the loan. .
As a result, mortgage loan insurance offers are on the increase and competition between insurers is increasing. It is rather good news for the individual borrower, who takes the opportunity to reduce the overall cost of his mortgage.
However, it is not always easy to find one’s way in the jungle of borrower insurance, between the rates ranging from single to double, essential and optional guarantees, insurance quotas, disability coverage rates. and incapacity, or even possible waiting periods.
This is where the home loan insurance broker comes in. Knowing perfectly the market for this specific insurance and on the lookout for news, he helps you find the contract that corresponds to your real needs, at the best possible price.
The advantages of a broker for borrower insurance
The broker helps you, through a mandate, to find the mortgage insurance contract in line with your borrower profile and your state of health. His intervention is without obligation, so you might as well take advantage of it. Note that he will pay himself a commission or claim a payment only if you subscribe to the offer he is offering you.
Here are some advantages provided by the borrower insurance broker:
- It saves you time, avoids lengthy procedures and insurance refusals while you focus on your real estate project
- It makes certain offers accessible that you were not even aware of, due to a partnership with an insurance company working only through the contribution of brokers for example
- He contacts the insurers in his network according to your risk profile, your real estate project and their type of clientele.
- He negotiates the best possible rate with them, while taking care to grant you an equivalent guarantee so that the delegation of insurance is accepted by the lending institution.
- He has a duty of information and advice, and decrypts the guarantees for you, helping you to fully understand your future borrower guarantee and to make your informed choice.
- It helps you find specific insurance offers, especially if you work in a risky profession or if you borrow with an aggravated health risk.
The broker can be of great help, especially if your time is limited or if the risk to be covered is specific. However, choosing the right broker for your project is essential to avoid disappointments …
The disadvantages of the broker for borrower insurance
Depending on the profile of the broker you choose, not all of them offer you the same contracts. Indeed, the negotiated rates and insurance offers depend on the partners with whom the broker works, but also on his client portfolio.
Here are the two main drawbacks that you may encounter when using a mortgage insurance broker:
- A sometimes high commission: as an intermediary, your broker can be paid on a percentage basis and therefore automatically increase the amount of your borrower insurance
- A limited choice of insurer: not working with all the existing players, you could miss out on offers available from other brokers
To overcome these minor inconveniences, you can make sure you make the best choice by using one of the following two solutions:
- If you have not signed an exclusive mandate, you can call on several brokers to benefit from differentiated offers
- You can use an online simulator to find out in just a few clicks if you can benefit from a better value for money than that offered by your broker.
Whether you use a physical broker, an online broker or you use insurance comparators, remember that you do not have to take any action. You are therefore free to choose the borrower insurance that suits you best.