Since the Lemoine law of 2022, any borrower can cancel their mortgage insurance at any time, without fees or penalties. This freedom has reshuffled the cards in the market. The choice of borrower insurance is no longer limited to comparing displayed rates: the conditions for triggering guarantees, exclusions, and the quality of contractual follow-up weigh as much as the monthly premium.
Duty of advice and traceability: what the ACPR is really monitoring
Most guides compare contracts based on price or basic guarantees. One aspect often takes a back seat: the quality of advice provided at the time of subscription.
The ACPR (Prudential Control and Resolution Authority) has sanctioned distributors for lack of advice, reminding that the guarantees offered must correspond to the actual profile of the borrower. The decision targeted everyday insurance, but the principle directly applies to mortgage insurance.
In practical terms, this means that the broker or bank must be able to prove that they have collected your personal information (professional situation, declared health status, real estate project) and that they have used it to guide their recommendation. If you want to choose the best borrower insurance, start by checking that your contact documents this process.
Always keep the standardized information sheet (FSI) provided during the first simulation. This document lists the guarantees required by the lender and serves as a reference for any subsequent comparison. In case of dispute, this is the piece that proves (or invalidates) the suitability of the contract to your situation.
Borrower insurance guarantees: beyond death and disability
All contracts cover death and total and irreversible loss of autonomy (PTIA). The real difference lies in three complementary guarantees, the definitions of which vary significantly from one insurer to another.
Temporary incapacity to work (ITT)
This guarantee covers the monthly payments when the borrower can no longer perform their activity. The trap lies in the definition retained: some contracts cover the incapacity to exercise “one’s profession,” while others cover the incapacity to exercise “any profession.” The latter formulation is significantly more restrictive. An employee on long-term sick leave may be denied coverage if the insurer believes they could occupy another position.
Partial (IPP) and total (IPT) permanent disability
The triggering threshold for IPP varies according to contracts. Some set a high minimum disability rate, which reduces the situations covered. Read the information notice, not the marketing brochure.
Job loss
Rarely included by default, this guarantee comes with long waiting periods and strict conditions (only economic dismissal, minimum seniority). Its cost is significant compared to the actual benefit. The job loss guarantee deserves a cost/benefit calculation before subscription, not an automatic reflex.
Reimbursement conditions: flat-rate or indemnity
This technical point radically changes the amount paid in case of a claim, but it is often buried in the general conditions.
- The flat-rate reimbursement pays a fixed percentage of the monthly payment, regardless of the actual loss of income. This is the most protective mode for the borrower.
- Indemnity reimbursement calculates the coverage based on the actual income loss suffered, after deducting any benefits received elsewhere (Social Security, employer insurance).
- In indemnity mode, a borrower well covered by their employer’s insurance may receive only a marginal supplement from their mortgage insurance, or even nothing at all.
For a long-term mortgage, the flat-rate mode better protects irregular incomes or self-employed individuals. Employees benefiting from solid collective insurance may accept a cheaper indemnity contract, provided they check the interactions between the two coverages.
Borrower insurance share and co-borrower profile
The share determines the portion of the loan covered by each borrower. For a joint loan, the bank requires a minimum total coverage of 100%, but the distribution is free.
The common reflex (50/50) is not always suitable. If one of the co-borrowers generates the majority of the household income, an asymmetric distribution (70/30 or 100/50) better protects the household in case of a claim affecting the main contributor.
The ACPR notes that banks continue to strictly apply the HCSF’s effort rate framework. This means that the file is calibrated tightly from the start. A poorly distributed share can turn a health hazard into a payment default, even if the validating co-borrower continues to work.
Anticipating the weaknesses of the file before comparing rates
According to the ACPR, the risk context of new mortgage loans remains generally contained, with a slight deterioration. Granting criteria have not been relaxed. This banking rigor has a direct consequence on the choice of insurance: situations likely to weaken a file over time count more than the initial rate.
- Variable incomes (freelancers, commission-based salespeople, temporary workers): check that the definition of ITT covers your actual mode of practice.
- Probation period or planned job change: some contracts exclude claims occurring in the first months of a new activity.
- Pre-existing conditions or aggravated health risks: the AERAS convention regulates access to insurance, but surcharges and exclusions vary greatly between insurers.
- Co-borrower with a significant age gap: the cost of insurance and age-related exclusions can diverge to the point of justifying two separate contracts.
The ACPR report on housing finance in 2025 emphasizes that comparisons must include the quality of advice and the traceability of recommendations, not just the displayed price.
A borrower insurance contract is judged by what it pays at the time of a claim, not by what it costs each month in the absence of problems. The FSI, the information notice, and the personalized sheet remain the three documents to read before any signature. Keeping these documents accessible throughout the duration of the loan also facilitates any potential contract change, now possible at any time.
