French Mortgage Insurance
Insurance Pays Off Capital
In most cases banks will oblige you to have an insurance to cover the death risk. Should something happen to you before the end of the mortgage life, the insurance company would pay off the outstanding capital.
Since 2010, the “loi Lagarde” obliges banks to accept external life insurance, provided it gives the same level of guarantee. Banks, however, try to sell their own insurance, since they make god profit from it. In more than 80% of the cases for the same level of guarantee you can get a cheaper insurance through a dedicated insurance broker. At French Mortgage Expert, we always look for this possibility, which gives the client the best combination: good mortgage interest rate and good insurance rate.
We don’t do the insurance brokerage ourselves as we consider it is a different expertise and that in order to do it well you need to be specialized. That is the reason why we work with an insurance broker who is the leader in insurance for non-residents.
Other Potential Insurances
Compulsory Insurance for Your French Property
It could also be interesting to check the cost of the “Multi Risque Habitation” which is the compulsory insurance for your French house or the “Protection Juridique” which is a legal assistance that you can use as much as you want. They will give you French legal advice. It could be a way of avoiding expensive lawyers for simple cases.