Borrower insurance accounts on average for 20 to 30% of the total cost of a property or land loan. Yet most borrowers take the insurance offered by their bank without comparing alternatives. That is often a costly mistake: choosing your own insurer (délégation d'assurance) can in most cases cut this cost significantly — sometimes by tens of thousands of euros over the life of the loan.
Agricourtage always includes borrower insurance in its brokerage work. We don't just negotiate your interest rate: we optimise the whole cost of your financing, insurance included. Through our network of insurers specialising in farming profiles, we put together the right cover at the best price.
What is borrower insurance, and why do banks require it?
Borrower insurance (or loan insurance) guarantees repayment of your loan in the event of death, disability or incapacity for work. It protects both the borrower and their family, and banks require it as security for any sizeable property or land loan.
In farming, this insurance is particularly important because it covers loan amounts that are generally higher than in residential property, over long repayment periods.
Choosing your own insurer: your right, your savings
Since the Lagarde Act (2010), strengthened by the Lemoine Act (2022), you have the right to take out borrower insurance with an insurer of your choice rather than your bank. This is known as délégation d'assurance.
The Lemoine Act also removed the medical questionnaire for home loans where the insured amount does not exceed €200,000 per insured person and the loan ends before the borrower's 60th birthday. It also gave borrowers the right to cancel their loan insurance at any time, free of charge — including during the first year.
In practice: if you took out your bank's insurance for your home loan, you can cancel it at any time and replace it with a more competitive policy (provided the cover is equivalent).
Find out more about the Lemoine Act (in French): economie.gouv.fr
How much can you save by choosing your own insurer?
Potential savings depend on several factors: loan amount, duration, the borrower's age and health, and the cover chosen. As an illustration:
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For a €500,000 loan over 20 years, choosing your own insurer can save €15,000 to €30,000 compared with the bank's group policy
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For a €1,000,000 loan over 25 years, savings can exceed €50,000
These figures are for illustration only. Every situation is different, and Agricourtage runs a personalised simulation for each client.
How does Agricourtage optimise your borrower insurance?
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Step 1 — Review of your current policy: we examine your existing cover and its price
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Step 2 — Market comparison: we consult insurers specialising in farming
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Step 3 — Alternative proposal: we offer a policy with (at least) equivalent cover at the best price
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Step 4 — Help with the switch: we handle cancelling the old policy and setting up the new one