Understanding Assurance Emprunteur: What Every French Property Buyer Should Know

When financing property in France, mortgage loan insurance — known locally as assurance emprunteur — is not a peripheral add‑on. It is a core requirement of virtually all home loans. For many buyers, especially expatriates and high‑net‑worth individuals, this insurance can be one of the most expensive components of the borrowing package.

At Blue Sky, we don’t just help you find the right mortgage — we help you secure the most cost‑effective insurance to accompany it. Because over the life of a loan, smart choices here can save you thousands of euros.

Why Mortgage Insurance Is Traditionally Mandatory

In France, assurance emprunteur protects both the lender and the borrower. Historically, it has been a systematic requirement for mortgage approval. It guarantees that in the event of death, disability, or incapacity, the outstanding mortgage balance will be repaid — either completely or to a level agreed with the bank.

Unlike in some countries where loan insurance is optional, French banks have historically required this coverage as a non-negotiable condition of the loan offer. This protection is especially stringent for non‑resident buyers whose foreign income streams or insurance histories may not map neatly to French standards.

The Modern Alternative: Borrowing Without Insurance

As we move through 2026, it is important to note that options now exist to take out a loan without traditional insurance, although it remains strongly recommended for most profiles.

High-net-worth borrowers may sometimes bypass insurance by pledging existing assets such as investment portfolios or life insurance policies to the bank as security. However, for the vast majority of buyers, insurance remains the primary safety net.

The Cost Pitfall: Bank‑Provided Insurance

Most French lenders will offer their own assurance emprunteur product (a “group policy”) when you take out a mortgage. While convenient, it is rarely the most competitive option. Insurance policies offered directly through banks often come with:

• Higher premium rates (often significantly more expensive than market alternatives).

• Rigid terms with limited flexibility.

• Broad coverage that may not be tailored to your specific health or professional profile.

Because the bank earns a commission on its own insurance, many borrowers accept the first offer without realizing that over a 20-year mortgage, they may be paying tens of thousands of euros in excess premiums.

The Lemoine Law: A Revolution for Savings

The Loi Lemoine, fully matured by 2026, fundamentally changed the game for borrowers. You are no longer “locked in” to the bank’s initial offer.

1. Switch Anytime: You can replace your insurance policy with a cheaper, equivalent one at any time during the life of the loan — no more waiting for anniversary dates.

2. Transparent Rights: Banks must clearly inform you of your right to “delegate” your insurance to an external provider.

3. Substantial Savings: By shopping around for “delegated insurance,” borrowers — especially those over 50 or those with large loan amounts — can often reduce their insurance costs by 30% to 50%.

At BlueSky France Finance, we believe that transparency and choice are the keys to a successful investment. By leveraging the flexibility of the Lemoine Law and our deep network of independent insurers, we ensure that your insurance is as optimized as your interest rate. Whether you are a non-resident buyer or a seasoned expatriate, our goal is to protect your assets while keeping your borrowing costs at an absolute minimum.

Identifying the right mortgage is only half the financial equation. At BlueSky, we:

• Compare Policies: We look at a wide range of independent insurers to find rates far below the bank’s standard group offer.

• Ensure Equivalence: We guarantee the new policy meets the bank’s specific requirements so your mortgage remains compliant.

• Execute the Switch: We handle the administrative process of cancelling the old policy and implementing the new one.