Actualité - Borrower insurance and the Lemoine law: how to change your home loan i

Since June 2022 in France, the Lemoine law has allowed borrowers to cancel their home loan insurance at any time, with no fees or penalties, regardless of how long the contract has been in place. This reform makes it easier to access insurance delegation, which is often much cheaper than the group contract offered by the lending bank. This article explains how the Lemoine law works, the procedure for changing insurance and the concrete savings a borrower can achieve in 2026.

Key points

The Lemoine law allows borrower insurance to be cancelled at any time, free of charge, as soon as the loan offer is signed.
The medical questionnaire is no longer required for loans of less than 200,000 euros per insured person, repaid before the borrower turns 60.
Switching to an insurance delegation generally makes it possible to save several thousand euros over the total term of the loan.
The bank has ten working days to respond to a request for substitution, provided that the level of cover is equivalent.

Borrower insurance: a simple principle, an often underestimated cost

Borrower insurance is not legally compulsory, but it is required in almost all cases by banks as a condition for granting a home loan. It guarantees repayment of the outstanding capital in the event of the borrower's death, disability, incapacity to work or, in some cases, loss of employment. Its cost, most often calculated as a percentage of the amount borrowed or of the outstanding capital, can represent between a quarter and a third of the total cost of a loan over twenty or twenty-five years, making it an expense item almost as heavy as the interest itself.

Historically, banks almost systematically offered their own group contract at the time the loan was granted, with rates pooled among all insured persons without fine distinction by profile. This system remained the norm for a long time due to insufficient information given to borrowers about their right to choose another insurer, even though the Lagarde law of 2010 had already opened the way to insurance delegation.

What the Lemoine law actually changes

Cancellation at any time, free of charge

Before the Lemoine law, changing loan insurance was only possible at specific windows: within the first twelve months of the contract, then on each anniversary date. Since 1 June 2022, this constraint has disappeared: a borrower can cancel their insurance contract and take out a new one at any time, without any particular justification and without cancellation fees, provided the new contract offers equivalent cover.

Removal of the medical questionnaire under certain conditions

The Lemoine law removes the health questionnaire for loans where the portion insured per person is less than 200,000 euros, provided that repayment of the loan is completed before the insured person's 60th birthday. This measure makes it easier to access insurance for people with an aggravated health risk, without any additional premium linked to their past or present state of health, within these limits.

A strengthened right to be forgotten

The period for the right to be forgotten, which allows certain pathologies to no longer be declared after a period following the end of therapeutic treatment, has been reduced from ten to five years for cancers and hepatitis C. The AERAS reference grid, which governs access to insurance for people who have or have had a serious health problem, has also been extended to cover more chronic conditions such as diabetes or certain cardiovascular diseases.

What savings can be expected from switching insurance?

Insurance delegation involves taking out a contract with an insurer other than the lending bank, while retaining the same minimum cover required by the bank. Alternative insurers use individualised pricing, based on the borrower's age, state of health, occupation and lifestyle habits, which often allows younger and healthy profiles to obtain rates significantly lower than those of the bank's group contract.

On a loan of 250,000 euros borrowed over twenty years by a couple in their forties, switching from a group contract to an insurance delegation frequently allows savings of several thousand euros, sometimes more depending on age and risk profile. These savings vary considerably from one case to another, but the cost gap between the bank contract and delegation remains, in most observed cases, in favour of delegation.

A young, non-smoking borrower generally achieves the greatest savings.
A couple of borrowers can choose different coverage shares and different insurers for each insured party.
Savings are all the greater when the remaining loan term is long.

The procedure for changing home loan insurance

Finding a contract with equivalent guarantees

The first step is to compare several delegated insurance offers and check that the level of guarantees proposed at least matches that required by the bank, based on the standardised information sheet provided when the initial policy was taken out. This equivalence is assessed against precise criteria: covered guarantees, coverage shares, excesses, exclusions and waiting periods.

Sending the substitution request to the bank

Once the new contract has been selected, it is enough to send the bank a request to cancel the current contract along with the new contract, by registered letter or any other durable medium provided for in the contract. The bank has ten working days to respond: it must either accept the substitution or refuse it with a reasoned decision if the equivalence of guarantees is not met.

The key role of professional support

Changing loan insurance is a technical process in which an error in guarantee equivalence can lead to the bank refusing the change and delaying the process. Being supported by an Optimhome estate agent helps secure the entire purchasing journey, including financing and insurance aspects, with a single local point of contact who knows the practices of the banks in their area.

Pitfalls to avoid when changing insurance

The main risk is choosing a contract with weaker guarantees in order to save on price, which exposes the borrower to the bank's refusal or, worse, to insufficient cover in the event of a claim. It is essential to compare guarantee exclusions, waiting periods for excess in the event of incapacity to work, and the terms for covering psychiatric or back conditions, which are often restricted in the cheapest contracts.

Do not confuse the insurance rate with the actual cost over the term of the loan, which also depends on how the insured capital is calculated.
Check the coverage share on each insured head, particularly for couples of borrowers.
Anticipate the bank's ten-working-day deadline before any time-sensitive transaction, such as a resale.
Keep written records of all exchanges with the bank in case of a dispute over the equivalence of guarantees.

Why activate this lever at the time of purchase or during the loan

At the time of purchase, it is tempting to accept the group contract offered by the bank to simplify putting the file together, but nothing prevents comparing delegated insurance offers as soon as the loan offer is signed, without waiting. This is often the most strategic moment, as the savings made from the outset accumulate over the entire term of the loan rather than applying only to the years remaining after a late change.

For borrowers already committed to a loan for several years, the Lemoine law offers an opportunity to review their contract without waiting for an anniversary date, particularly if their state of health has improved or if they have never compared offers since taking out the initial policy. A planned sale or loan renegotiation is also a good time to review this, just as an online property valuation makes it possible to anticipate a future purchase by knowing the value of one's current property.

Conclusion

The Lemoine law has considerably simplified changing borrower insurance by removing the constrained cancellation windows and making access to insurance easier for many profiles thanks to the removal of the medical questionnaire under certain conditions and the strengthened right to be forgotten. For a borrower, comparing delegated insurance offers remains one of the simplest savings levers to activate, whether at the time of purchase or several years after signing the loan.

Before embarking on a property project or renegotiating financing, it can be useful to consult Optimhome property listings to refine one's project, and to seek out a local professional to secure every step, from the property valuation to the choice of loan insurance.

FAQ

Does the Lemoine law apply to all home loans?

It applies to home loans used to finance properties for residential or mixed use, whether they are ongoing or newly taken out. Professional loans or certain specific bridging loans may follow different rules, so it is advisable to check the specific case with the lending institution.

Does changing loan insurance involve any fees?

No, terminating the current borrower's insurance contract is free of charge under the Lemoine law, with no compensation or penalty to be paid to the bank. Only any fees related to taking out the new contract, such as processing fees charged by the new insurer, may apply depending on the offers.

Can the bank refuse the new insurance contract?

Yes, but only if the level of cover of the new contract is lower than that initially required, and this decision must be justified in writing. If the equivalence is respected, the bank cannot object to the substitution or change the loan terms in reaction to this change.

What does equivalence of guarantees actually mean?

This involves comparing the new contract to the minimum guarantees required by the bank, listed in a standardised information sheet provided with the initial loan offer. This covers the guarantees included, the coverage percentages, the exclusions, and the applicable waiting or deferral periods.

Does the medical questionnaire disappear for all borrowers?

No, the removal of the medical questionnaire only applies if the insured share per person is less than 200,000 euros and if the loan is fully repaid before the insured person turns 60. Beyond these thresholds, a health questionnaire is still required by the insurer.

Is it worth changing insurance several years after taking out the loan?

Yes, it remains worthwhile as long as there is a sufficient remaining repayment period for the savings made to offset the time spent comparing offers. It is also an opportunity to check whether an improvement in health or professional situation allows for a more advantageous rate than at the time of the initial subscription.