Insurance delegation: advantages and conditions

When taking out a mortgage, borrower’s insurance is essential to secure the loan. But did you know that you are not obligated to take out the one offered by your bank? Thanks to insurance delegation, you can freely choose an external contract. This possibility, still little known, can save you thousands of euros while benefiting from better guarantees. Here’s everything you need to know.

1. What is insurance delegation?

Insurance delegation consists of taking out borrower’s insurance outside of the lending bank. This right, regulated by law, allows you to compare offers and opt for coverage that is often more advantageous.

2. The advantages of delegation

• Substantial savings: up to “50% savings” on the overall cost of insurance
• Tailored guarantees: adapted to your profile (age, profession, health, etc.)
• Increased transparency: more readable contracts, management independent from the bank
• The freedom to change at any time thanks to the Lemoine law (since 2022)

Result: more effective and economical insurance, without compromising your protection.

3. Conditions to be met

For your bank to accept the insurance delegation, the new contract must offer equivalent guarantees to those of the group contract it proposes. This means:

• Compliance with required criteria (death, total and irreversible loss of autonomy, total temporary disability, total permanent disability…)
• Presentation of a standardized information sheet
• Transmission to the bank by registered mail with acknowledgment of receipt

The bank has 10 days to respond. In case of unjustified refusal, it faces sanctions.

4. When to carry out a delegation?

• At the time of loan subscription: this is the simplest and most advantageous
• After signing the loan: possible at any time thanks to the Lemoine law, without fees

There is therefore no deadline to benefit from delegation.

5. Why seek assistance?

Comparing offers alone can be complex. At Domacap, we accompany you at each step:

• Comparison of the best offers
• Verification of the equivalence of guarantees
• Management of exchanges with the bank

You benefit from an optimized, fast solution that complies with regulations.

Conclusion

Insurance delegation is a powerful lever to reduce the cost of your loan while strengthening your protection. Thanks to current legislation and Domacap’s support, you can exercise this right simply and effectively, at any time.