When planning to replace your insurance, the timeline must account for the steps required with the bank and insurers. During a mortgage, you can change insurers at any time after signing the loan agreement, but you must obtain the lender’s approval of the new policy before changing.
Before setting a transition date, check the proposed cover and dates with the insurers. Keep the responses and relevant documents to track your application.
Start with the bank’s requirements
The bank may check that the new policy meets the level of cover provided by the original insurance. Compare the proposal with the requirements communicated to you, particularly those in the personalised information sheet.
This sheet defines the features required of the policy: the extent to which the loan must be insured, as well as the type and content of the cover. Review these details with the new insurer’s proposal at hand. For each required type of cover, find its terms in the proposal and note any points to clarify with the insurer or bank.
The standardised information sheet sets out the features of the loan application and the minimum cover required. It also presents the policy the lender might offer and its approximate cost. If you are still arranging your financing, use these documents to make your request to an insurer and review the proposal you receive.
The bank may require borrower insurance for a mortgage, but you can approach another insurer. The policy you choose must meet the criteria set out in the personalised information sheet provided by the lender. When preparing your financing, ask for these criteria before making your choice.
Read the proposal before choosing a date
Waiting periods and excess periods can also differ between policies. Identify them in the documents and ask what they mean for the cover you are considering. This reading complements the comparison of cover levels: it helps you ask specific questions about how the cover works.
Review the proposal and the information notice: cover, conditions for making a claim, exclusions and cost all deserve your attention. The notice lists the risks covered and the conditions for making an insurance claim. All the policy clauses must appear in it.
Ask the insurer to clarify any points that remain uncertain, particularly the proposed start date for cover. Also check the total cost of the insurance over the term of the loan, which must be communicated to you in euros. Take time to compare the documents you receive rather than choosing a date based solely on the initial estimate.
If you are asked to complete a medical questionnaire, fill it in in good faith. The applicable rules depend on the features of the loan. Allow for this step when preparing your application and ask the insurer what documents or information are needed to assess your request.
Send requests to the bank and insurer
To change loan insurance during a mortgage, you must send a replacement request to the lender and a cancellation request to the insurer. Cancellation can be requested, among other ways, by letter, by an official notice served by a judicial officer or by any other means provided for in the policy.
Prepare these requests using the documents relating to the new policy and the bank’s requirements. Keep a record of the requests and their receipt. Before agreeing on a date with the insurers, check how it fits with the bank’s review of the new policy.
To track the application, you can keep a simple record: the date each request was sent, the recipient, the response received and any point still to be confirmed. Keep exchanges with the bank separate from those with your current insurer and the new insurer. If information is missing from your personal records, ask the relevant contact for clarification.
Adjust the next steps to the bank’s decision
If the bank refuses, it must state its reasons and, if necessary, identify the information and cover missing from the new policy. The insurance policy is then not cancelled. Review the stated reasons with the new insurer to examine what needs to be added or what cover needs to be revised, then ask the bank how to proceed with your application.
If the bank agrees, it has 10 working days after receiving your request to amend the loan agreement by an addendum, including to state the new APR. You must inform the new insurer of the bank’s decision by registered post or electronic registered mail.
Keep the decision and the addendum with the insurance documents. Review them against your request and raise any points requiring clarification with the relevant contact. The stated period for the addendum runs from receipt of the request, so keep a record of the receipt date.
Check the dates before the transition
Compare the proposed end date of the old policy with the start date of the new cover. Have the insurers confirm these dates and review the applicable conditions: a date proposed during an estimate still needs to be checked against the documents and correspondence relating to the proposed policy.
For each date, ask which policy it relates to and keep the response. Also check the conditions for making claims and any periods mentioned in the notice. If the dates or conditions remain uncertain, contact the insurers again before considering the timeline settled.
This guide provides general pointers to help you prepare for your discussions. Review your own policies and ask for details relevant to your situation. If you have a question, you can, among other options, contact Info Banque - Assurance or a departmental housing information agency.
