What are the mandatory and optional guarantees?
Home loan insurance taken out with your loan may include different guarantees. These differ according to the destination of your purchase, and according to your bank.
- Whether it is a rental purchase or a second home, the guarantees required are limited because the bank will consider that in the event of default by the borrower, the rents may cover the monthly loan payments. These guarantees will not depend, here, on your chosen bank but only on the destination of your property.
- If it is the purchase of a primary residence, the number of guarantees required is greater and they will depend on the bank you choose.
Some banks require, for example, back and psychiatric guarantees, while others do not.
The number of guarantees will increase the cost of the insurance (on average by double the DC-PTIA guarantees and DC-PTIA-IPT-ITT guarantees).
Below are the guarantees requested according to your situation.
Here are the mandatory guarantees in all cases:
- Death guarantee.
- PTIA warranty.
Here are the mandatory guarantees for the purchase of a primary residence:
- Total Permanent Disability Guarantee (IPT).
- Lost Time Guarantee (ITT) with a 90-day deductible.
Here are the optional guarantees, required by your bank:
- Partial Permanent Disability Guarantee (PPI) to supplement the IPT guarantee.
- Job loss guarantee (very rarely requested and very expensive).
Your questions :
Is it compulsory to insure my mortgage?
According to the law, it is not mandatory to insure your loan. However, rare are the lenders who will agree to grant you a loan without insurance.
Am I required to take out insurance from the lending bank?
Absolutely not, you can completely refuse group insurance from your bank and subscribe to an outside insurer. The Lagarde and Hamon laws and the Bourquin amendment are the legal provisions which allow you to make this change in borrower insurance.
Are some mortgage loan insurance guarantees mandatory?
Yes! Death and PTIA (Temporary and Irreversible Loss of Autonomy) guarantees are systematically provided.