Borrower insurance for new-build homes: how to choose it well in 2026?

When buying a new home, attention often focuses on price, location or the financing structure. Yet one element weighs heavily on the total cost of your project: borrower insurance. Over the life of a loan, it can represent a significant share of the overall cost of financing. Choosing it well means protecting your family while optimising your budget.

In this 2026 guide, the JL HOME team explains how borrower insurance works for a new-build purchase, which guarantees to watch, and how to compare offers with confidence.

What is borrower insurance for?

Borrower insurance takes over repayment of your mortgage if you can no longer meet your instalments following a setback: death, disability, inability to work and, in some cases, loss of employment.

It therefore protects two parties:

• You and your loved ones, who are not left with an insurmountable debt or at risk of losing the property.
• The bank, which secures repayment of the capital lent.

In practice, no bank will grant a mortgage without insurance. It is not legally compulsory, but lenders systematically require it.

New build or older property: is there a difference?

Borrower insurance works the same way whether you buy new or older property. What changes is the financing context.

In new build, the purchase is often made under a VEFA (off-plan sale, Vente en l'État Futur d'Achèvement), with funds released in stages. Cover starts as soon as the loan is set up, even during the construction phase. In addition, buying new often comes with schemes such as the PTZ, which must also be covered by insurance.

Good to know: the reduced notary fees on new build (around 2 to 3 %, to be confirmed with your adviser) sometimes free up a little budget, but this has no effect on the cost of the insurance itself, which depends mainly on your profile.

The guarantees to watch

Not all insurance policies are equal. Here are the key guarantees to examine line by line.

Death and PTIA

The death guarantee and PTIA (Permanent Total Loss of Autonomy) form the minimum core required by banks. In the event of death or total disability preventing any activity, the insurer repays the outstanding capital, according to the insured share.

Incapacity and disability (ITT, IPT, IPP)

These guarantees cover temporary work stoppages or partial or permanent disability. They are particularly important for borrowers whose income depends on their professional activity. In particular, check:

• The waiting period (the period before compensation begins).
• The method of compensation: fixed (a set amount) or indemnity-based (according to the actual loss of income). Fixed is often more protective.
• The exclusions (back conditions, psychological conditions, high-risk sports…).

Loss of employment (optional)

This guarantee can be reassuring, but it is often expensive and subject to numerous conditions. Consider it according to your situation.

The insured share: a strategic lever for couples

The insured share is the percentage of the capital covered for each borrower. For a couple, the sum of the insured shares must reach at least 100 %.

Concrete example: Julie and Karim borrow together. They can choose 50 % / 50 %, or 100 % / 100 % for maximum protection (each is then fully covered, which doubles the cover but increases the cost). If Karim earns most of the household income, they may opt for 70 % on him and 30 % on Julie, to better protect the household where the financial risk is highest.

There is no universally right answer: the choice depends on your respective incomes and your appetite for protection. A JL HOME adviser can help you decide.

Group contract or insurance delegation?

The bank will offer you its group policy: a pooled insurance that is simple to take out, but whose rate does not always reflect your individual profile.

You have the right to choose a delegated insurance, meaning an individual policy taken out with another insurer. The condition: the guarantees must be at least equivalent to those required by the bank (the principle of equivalence of guarantees).

This option is often advantageous for younger, healthy profiles, who may benefit from more suitable rates. Please note, however: we do not promise any quantified saving, as this depends entirely on your age, state of health and the policy chosen.

Your rights: change insurer whenever you wish

Since the Lemoine law, it is possible to terminate and change your loan insurer at any time, without fees or penalties, from the first year of your loan. This is a valuable freedom: even if you took the bank's group policy when you bought, you can renegotiate it afterwards.

The Lemoine law has also removed the medical questionnaire under certain conditions (loan amount and repayment term capped — to be checked with your adviser). A real benefit for borrowers with a health history.

How do you compare effectively?

1. List the guarantees required by your bank (standardised information sheet).
2. Compare on equivalent guarantees, never on price alone.
3. Check the exclusions and deductibles, which are often decisive.
4. Look at how the premium is calculated: on the initial capital or on the outstanding balance.
5. Anticipate how your project may change (resale, early repayment, change in circumstances).

Our support JL HOME

At JL HOME, we support first-time buyers and investors alike in putting together the overall structure of their new-build property project: choice of scheme, financing, schemes (PTZ for a main residence, rental solutions for investors) and, of course, consideration of loan insurance.

Our role is not to sell insurance, but to give you the keys to make an informed choice, suited to your situation in 2026.

Want a clear view of your new-build project? Run your simulation or book an appointment with a JL HOME adviser for personalised support from start to finish.

Loan insurance is not a mere formality: it is a pillar of your project's soundness. Take the time to choose it, compare on equal guarantees, and do not hesitate to exercise your rights.