Cover exclusion
A cover exclusion is a clause in a borrower-insurance contract that explicitly removes certain risks, events, or conditions from the scope of coverage. If a claim arises from an excluded risk, the insurer will not cover the loan repayments, potentially leaving the borrower solely responsible for repayment despite their incapacity.
Key points
- General exclusions (intentional acts, war, extreme sports) are common to all contracts.
- Specific exclusions are tailored to the borrower's medical or professional profile.
- An exclusion must be clearly stated in the special conditions and in the standardized information sheet.
- It is sometimes possible to buy back an exclusion by paying an appropriate surcharge.
- Borrowers should review exclusions before signing, especially if they have a medical history.
Frequently asked questions
How can I tell if my contract contains exclusions that apply to me?
Exclusions must appear in both the general terms and the special conditions of the contract, as well as in the standardized information sheet provided before subscription. It is essential to read these documents carefully — especially the section covering exclusions specific to your profile — before signing.
What happens if I fall ill from a cause excluded from my contract?
The insurer will refuse to cover the corresponding loan repayments. The borrower must continue repaying the loan out of pocket, which can be extremely difficult during an extended period of work incapacity. This is why identifying exclusions is just as important as price when choosing a policy.
Can a cover exclusion be negotiated away?
Some insurers offer an exclusion buy-back mechanism, where the borrower pays an additional surcharge to obtain coverage for a risk that was initially excluded. This option is not universal and depends on each insurer's underwriting policy. A specialist broker can identify insurers that allow buy-backs and negotiate the terms.
In practice
Sophie, a former athlete who had knee surgery, discovers on reading her special conditions that her group contract excludes relapses related to this pre-existing condition. Her broker finds her an individual policy that, for a modest surcharge, agrees to cover this risk subject to a waiting period.
Official sources
- Borrower insurance: guarantees and exclusions · Service-Public.gouv.fr
- Borrower insurance for a mortgage · Service-Public.gouv.fr
- Law of 28 February 2022 (Lemoine Act) · Vie-publique.fr