Risky hobbies and borrower insurance do not mix (Photo credits: Unsplash – Sebastian Staines)
Although we don’t often think about it, the practice, even occasionally, of a risky sport can have a direct impact on the coverage guaranteed by your mortgage loan insurance. Explanations.
What is a risky sport?
When we speak of “risky sport”, we generally think of disciplines whose danger for practitioners seems quite obvious, such as hang-gliding, rock climbing or even bungee jumping.
But in terms of insurance, the category is much broader: each company is free to draw up its own list of sports and leisure activities that it wishes to classify as “at risk”, based, among other things, on statistics. to determine the physical practices that give rise to the most serious accidents, which can lead to death or disability.
Thus, cycling, judo, fencing or even karate are often deemed “extreme” by insurers, as are horse riding or even… rollerblading.
To find out whether or not the activity you are passionate about is considered risky by your insurance company, carefully examine the general conditions of your contract or contact your insurer directly.
What are the consequences for your borrower insurance?
Like all other insurance, home loan insurance is intended to cover a so-called “random” risk, that is to say beyond the control of the parties.
However, by practicing a risky sport or leisure activity, you are consciously putting yourself in a risky situation: no one is forcing you to practice skiing or climbing, you do it by choice, knowing that it is an activity during which you can hurt yourself more or less.
This disappearance of the random side of the risk has direct consequences on the validity of your borrower insurance contract.
What should you do if you practice a risky sport?
If your practice of a risky sport is regular, you must report it to your insurer when you take out the borrower insurance contract.
He will draw the consequences on the impact on your risk profile and will be able to:
- Either you apply an exclusion clause, that is to say that you will not be covered by your contract in the event of death or sequelae following an accident occurring during the practice of extreme sport.
- Or offering you to pay an additional premium, in exchange for which you are covered even when practicing the declared extreme activity.
Good to know: If you take a passion for a risky sport after taking out your contract, you are still required to report this change to your insurer.
What happens when you are on vacation?
We think little about it in the euphoria of the moment, but the specific activities that we can practice on vacation are also affected by the rules set out above.
If you plan to practice jet skiing during your holidays, you must theoretically declare it up to your insurer. Some insurance companies will offer you to pay a provisional additional premium in order to be covered.
If you do not declare it or if your insurer decides on an exclusion clause, keep in mind that in the event of an accident, even with long-term consequences, you will not be covered and will have to continue to assume your own even the repayment of your mortgage.
Something to think twice about before playing the daredevil…
Stephanne Coignard (firstname.lastname@example.org)