When buying a house, you will immediately think of the mortgage, to finance your property. However, we do not always think of taking out real estate insurance, to have certain guarantees in case of need. You may think that it is not essential, it is an additional cost and yet it is essential.
What are the guarantees of borrower insurance?
However, we do not always think of taking out real estate insurance, to have certain guarantees in case of need. To find out the possibilities of guarantees, the amount of your payments, you will have to fill out a form concerning your health. Property insurance guarantees you partial or total coverage of your monthly payments, when certain events occur.
Mortgage loan insurance like that of the Maaf offers guarantees such as:
- The death
- Total and irreversible loss of autonomy (PTIA)
- Permanent disability (total or partial)
- Temporary incapacity for work (total or partial)
- Job Loss
Is it compulsory to take out insurance when buying real estate?
No law obliges anyone to take out property insurance, it is advisable, but not compulsory. However, it is possible that a bank will refuse you a mortgage because you have not taken out borrower insurance. Indeed, this allows them to be sure, to see the repayment terms of the loan, even in the event of a problem.
A bank will necessarily advise you to take out such insurance, to have guarantees for the risks of Death, Total and Irreversible Loss of Autonomy but also Disability and Incapacity for work, or even Loss of employment, for any real estate purchase and sometimes even for rental.
Points that should not be overlooked when choosing property insurance
It is important to compare the different insurance offers, you have the possibility of going directly through your bank, but also through third-party insurers. The easiest today is to go through comparators and have a good range of what is offered on the market. To make the best choice, here are a few points to consider in your choice:
- The waiting period, the waiting period or the franchise period
- The various exclusions that will not be covered by your insurance, such as the practice of certain extreme sports, but also the exclusions that would be linked to your health form
- The age limits for setting up certain guarantees, as well as the age at which the insurance guarantees will end
- Certain criteria for hospitalization, the management of certain pathologies
- The method of support (flat-rate or compensation).