Hamon Law and Home Loan Insurance

Real estate insurance concept

What does the Hamon law on borrower insurance change?


The Hamon law on mortgage extends the freedoms of the borrowers:

  • It is now possible to cancel the insurance of its mortgage for the first 12 months (with a notice of 15 days) following the date of signature of your loan offer.
  • The Hamon Act covers insurance for loans intended to finance:
    • The purchase of new or old property for use as a dwelling (or for business and residential purposes)

    • The financing of works (if more than € 75 000)

    • The construction of a real estate (if you buy a land).

  • The response time from banks is limited to 10 working days from the date of receipt of your request for cancellation by registered mail with AR . If this obligation is not respected, the bank in question would be subject to an administrative penalty of € 3,000.
  • The law prohibits banks from claiming an amendment fee for a termination that would take place during the first 12 months.
  • Banks are also prohibited from invoicing for the study of external insurance.
  • The new insurance must include guarantees at least equivalent to those offered by the bank. The bank is entitled to refuse the delegation of insurance, but it must rely on the grid of the CCSF  (Financial Advisory Committee) which is a table making it possible to compare the guarantees of the borrowing insurance. We advise you to go through a loan insurance specialist to advise you on the best contract depending on the bank you have chosen.

With the expertise of Reassure Me, we know which contracts are accepted by your bank and what are the minimum guarantees required by your bank. Thus, refusals are very rare. The contract we offer will cover you as well, or even better than the contract-group of your bank. We have a success rate above 95%.

Finally, if the change of insurance is really impossible with your bank (particularly rare case), we can easily cancel your contract without any costs and you will be fully reimbursed if monthly insurance premiums have already been taken.

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