Changing your Mortgage Insurance has never been easier. Thanks to the Lemoine Law, borrowers can now cancel and replace their mortgage insurance policy at any time, without waiting for the annual renewal date.
This reform offers a valuable opportunity to reduce the overall cost of a mortgage, obtain better coverage or adapt your insurance to changes in your personal or professional circumstances.
What Is the Lemoine Law ?
The Lemoine Law has significantly simplified the process of changing Mortgage Insurance in France.
Before it came into force, borrowers had to follow strict deadlines when cancelling their insurance policy, either during the first year of the mortgage or on the policy’s annual renewal date.
Today, borrowers can switch Mortgage Insurance at any time, free of charge and without penalties, provided that the new policy offers guarantees that are at least equivalent to those required by the lending bank.
How Does Switching Mortgage Insurance Work ?
Changing Mortgage Insurance involves more than simply cancelling your existing policy.
The first step is to find a new insurance policy that meets your lender’s requirements.
Once you have selected a suitable policy, it is submitted to your bank for approval.
If the guarantees are considered equivalent, the lender is legally required to accept the substitution.
Your previous insurance policy is then cancelled and replaced by the new one without any interruption in cover.
Why Change Your Mortgage Insurance?
For many borrowers, the main motivation is financial.
Mortgage Insurance can represent a significant proportion of the overall cost of a mortgage. Comparing policies may save several thousand—or even tens of thousands—of euros over the remaining life of the loan.
However, cost is not the only reason to switch.
A new insurance policy may also allow you to :
- Obtain more comprehensive cover.
- Reduce policy exclusions.
- Adapt your insurance following a move abroad.
- Better protect your professional or sporting activities.
- Choose a policy specifically designed for expatriates or non-residents.
An Example of Potential Savings
A borrower takes out a €450,000 mortgage and initially accepts the Mortgage Insurance offered by the bank.
Several years later, they compare the market and find an alternative policy providing equivalent guarantees while reducing the monthly premium by €70.
With 15 years remaining on the mortgage, this represents a potential saving of €12,600, excluding any differences in policy guarantees.
This example illustrates why it is worthwhile reviewing your Mortgage Insurance regularly.
Changing Insurance Before Early Repayment
The Lemoine Law is also particularly beneficial for borrowers planning to :
- Repay their mortgage early.
- Sell their property.
- Refinance their loan.
If you know you are unlikely to keep your mortgage until the original end date, comparing insurance costs over your expected ownership period is often more relevant than looking only at the full mortgage term.
A policy that appears cheaper over 20 years is not necessarily the most economical if you intend to keep the loan for only five or eight years.
Your insurance should therefore be evaluated according to your actual property plans—not simply the theoretical duration of the mortgage.
The Steps to Change Your Mortgage Insurance
Changing Mortgage Insurance generally involves the following process :
- Obtain your bank’s required level of guarantees.
- Compare several Mortgage Insurance policies.
- Select a policy offering equivalent cover.
- Submit the substitution request to your lender.
- Wait for the bank’s approval.
- Activate your new insurance policy.
- Cancel your previous policy without any interruption in cover.
Working with a specialist broker helps ensure that each step is completed correctly and avoids unnecessary administrative complications.
Common Mistakes to Avoid
The most common mistake is cancelling your existing insurance policy before the bank has formally accepted the new one.
Doing so may leave you temporarily uninsured and could even jeopardise your mortgage.
Another frequent mistake is comparing policies solely on price without considering:
- The guarantees provided.
- Policy exclusions.
- Waiting periods.
- Deferred periods.
- Claims procedures.
Finally, some borrowers forget that a bank may reject a substitution request if the new policy does not provide guarantees equivalent to those originally required.
Preparing a complete and compliant application is therefore essential.
Why This Matters Even More for Expatriates and Non-Residents
For French expatriates and non-residents, changing Mortgage Insurance can be particularly worthwhile.
Standard bank insurance policies are not always designed for borrowers living abroad, travelling frequently or earning international income.
Choosing a specialist insurer through insurance delegation often provides cover that better reflects the borrower’s actual circumstances while reducing the overall cost of the mortgage.
Conclusion
Thanks to the Lemoine Law, changing Mortgage Insurance has become simpler, more flexible and, in many cases, far more cost-effective.
Borrowers now have greater control over both the cost of their mortgage and the quality of their insurance cover.
Before switching policies, however, it is essential to compare guarantees carefully, obtain your lender’s approval and ensure there is no interruption in insurance coverage.
Would you like to know whether your current Mortgage Insurance could be replaced with a more competitive solution ? France Protect Insurance helps French expatriates, non-residents and international borrowers compare policies, manage the substitution process and secure Mortgage Insurance perfectly suited to their mortgage in France.