Borrower insurance and risky leisure: What are the consequences?

Borrower insurance and risky leisure: What are the consequences?


Risky hobbies don’t mix with borrower insurance (Image credits: Unsplash – Sebastian Staines)

Although we don’t think about it often, playing a risky sport, even at times, can have a direct impact on the coverage your mortgage loan insurance guarantees. explanations.

What is a risky sport?

When we talk about a “risky sport,” we generally think of disciplines whose danger to practitioners is quite obvious, such as skydiving, climbing, or even bungee jumping.

But in terms of insurance, the category is much broader: each company is free to make its own list of sports and leisure activities that it wants to classify as “at risk”, based on, among other things, statistics. To determine the physical practices that lead to the occurrence of the most serious accidents that could lead to death or disability.

Thus, cycling, judo, fencing, or even karate are often considered “extreme” by insurance companies, as are horseback riding or even…snowboarding.

To find out if the activity you are passionate about is considered at risk by your insurance company, read carefully the general terms of your contract or contact your insurance company directly.

What are the consequences of your borrower’s insurance?

Like all other types of insurance, mortgage loan insurance is intended to cover so-called “random” risks, that is, outside the control of the parties.

However, by doing a risky sport or recreational activity, you are consciously putting yourself in a precarious situation: no one is forcing you to ski or climb, you do so by choice, knowing that it is an activity during which you could harm yourself somewhat.

This disappearance of the random aspect of risk has direct consequences for the validity of your borrower’s insurance contract.

What should you do if you do a risky sport?

If you regularly engage in risky sports, you must inform your insurance company when concluding the borrower’s insurance contract.

It will map out the consequences for the impact on your risk profile and will be able to:

  • Either you apply the exclusion clause, meaning you will not be covered by your contract in the event of death or sequelae following an accident while playing extreme sports.

  • Either you are offered to pay an additional premium, in return you will be covered even for the declared extremist activity.

Good to know: If you develop a passion for a risky sport after your contract is terminated, you must still inform your insurance company of this change.

What happens when you are on vacation?

We don’t think about it much in the euphoria of the moment, but the specific activities we can do on vacation are also affected by the rules described above.

If you plan to ride a jet ski during your vacation, you should in theory declare it to your insurance company. Some insurance companies will offer you a temporary additional premium in order to cover it.

If you don’t declare it or if your insurance company decides on the exclusion clause, keep in mind that in the event of an accident, even with long-term consequences, you will not be covered and you will have to continue with your own expenses until you pay off your mortgage.

Something to think twice before playing Daredevil…

Stephen Kinnard (redaction@boursorama.fr)

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