Free time is at risk: How do you insure your mortgage?

Free time is at risk: How do you insure your mortgage?

Written by Marion Regno,


Posted on 07/04/2022

How to reconcile risky activities and borrower insurance?

As part of a home loan, the Exciting hobbySometimes, it should not be avoided. Once a risk is detected by insurance companies, the latter will reflect this data on Warranty coverage costs. A trend that can be significantly highlighted through the implementation of Lemoine’s Law.

What hobbies are considered risky?

subordinate exciting funAlthough they may be exhilarating, they often carry risks that can affect the autonomy as well as the life of the person who exercises it. First, it seems logical to consider practices such as skydiving, climbing, motor sports, rafting, deep sea diving, cave exploration, etc. However, insurance extends this spectrum to wider areas when it comes to mortgage cover, and hobbies that seem harmless to you are no longer really, such as martial arts, martial arts, fencing, horse riding, etc., and regardless of the skill level of the practitioner, it will be necessary to notify your insurance company! Keep in mind that if you have a claim during your undisclosed activity, the insurance will not cover making your monthly mortgage payments.

For all practical purposes, you should be aware that insurance will tend to cover sports or activities that will be the subject of competition, under the supervision of clubs or simply by a French sports federation. As long as the activity is regular – for example, you’re just riding in a club – it may be subject to an additional premium because you are not immune to a bad fall or being accidentally run over by your horse.

If you are not sure whether your activity is risky or not, you can find out directly by referring to the general terms of your warranty contract or by asking your insurance company.

Good to know: Always make sure that all of your mortgage-related insurance covers you well until the end of the contract.

Leisure time at risk: What is the impact on loan insurance?

Ago Doing a risky hobby or sport It is necessarily assumed that you are aware of this procedure and excludes itself from coverage by any insurance designated for it The so-called “random” risk involvedThis will have repercussions on the cost of insurance or on the validity of the insurance contract for the borrower.

Indeed, in the face of such heightened risks, not all insurance organizations will react in the same way. If some will support the practice of these recreational activities by charging an additional premium to the insurance, others can simply exclude them from the guarantee. Thus, if you have an accident while exercising in your spare time, imagine while skiing, you will not be covered by insurance, in any way, that the disaster involves partial, even total and irreversible loss of your abilities or even death.

Note that cases are however specific and will depend greatly on which insurance organization you belong to. As a general rule, as we have seen, all activities that are regular and supervised by an organization (club, competition, French federation) are subject to the additional bonus and are therefore covered.

However, what about more occasional hobbies, such as those taken up during the holidays? In the winter, many people grab their skis or snowboards to go downhill, or throw themselves onto surfboards in the summer to ride the waves. In these cases, if a disaster happens to you, causing a partial or total and irreversible loss of your abilities, or even death, you will likely be covered by borrower insurance on the pretext of a random accident.

On the other hand, any intentional threat to the insured will result in the bank’s disqualification of coverage and you will not be compensated, regardless of the severity of the claim. By intentional endangerment, we can mean: black slope or off-piste skiing, surfing in dangerous waters, going down more than 20 meters in scuba diving, and many other situations that you need to explore with your insurance company.

Good to know: If your exercise occurs during the insurance period, you must notify your insurance company if you wish to obtain insurance coverage. If your insurance company refuses to insure you against the risks of a potential claim, you can always refer to Insurance authorization In order to find better insurance coverage than the competition.

Risky Hobbies and the Law of Lemoine

In 2022, the borrower’s insurance received a facelift with the enactment of the Lemoine Act, which is already in effect for new insurance contracts since June 1, and uniformly applicable from September 1, 2022. Between the right to terminate at any time and without loan insurance costs, and the reduction of the right to Forgetting This fix is ​​decorated at the end of the medical questionnaire with the following conditions:

  • If the loan is less than €200,000 of borrowing per insured (i.e. €400,000 for the two);

  • If the term of the loan occurred before the 60th birthday of the insured;

  • If the subject of the mortgage is related to the acquisition or work in a main or secondary residence, or the purchase of a rental investment.

While this progress was well received by borrowers and credit experts, it was not the case for insurers, who realized the massive lack of information to assess the risks incurred for the files in question. The decision was intentionally made to rebalance the power of credit insurance and to make the Health Form system less discriminatory. But for now, insurers are clearly compensating for the uncertainty by inflating insurance rates or relying on other measures to mitigate the risk of death, disability or incapacity.

This is the second case that concerns us because in addition to the assessment made on indirect questions about health (tobacco consumption, handling, body mass index, social and occupational category, etc.), insurance companies will also rely on all additional risks, ie. Leisure and sports are at risk. Additional premiums or exclusions can only be more important…

In short, every danger is real and it is desirable to be aware of all the dangers one is exposed to, in order to arm accordingly. Guaranteed risks are always insurance for the future and for you!

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