Insurance obligations

Two types of insurance are required when you purchase a home in France with a mortgage. One is building and contents insurance that covers the property itself and the other is life assurance (including total and irreversible loss of independence) covering the borrowers for the total amount of the loan.

Building and Contents Insurance

Building, property and contents insurance is obligatory and the policy must be put in place before you sign the deed of purchase. Your notary will ask for a copy of the policy at the moment of signing the deed.

Life insurance / Mortgage Protection

Taking out a life assurance policy to cover the amount of a property loan is not a legal obligation in France. French banks normally do not offer loans without it. The mortgage protection and loan application are often treated simultaneously and considered as being part of the same transaction.

The mortgage protection is :  
   

The mortgage protection policy normally covers the remaining capital due in the case of death or disability of the assured.

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