Taking out Mortgage Insurance protects your mortgage against life’s unexpected events. But what actually happens when you need to make a claim ? Whether it involves death, disability or temporary incapacity to work, every situation follows a clearly defined claims process.
Understanding how Mortgage Insurance claims are handled helps you prepare the necessary documents, anticipate the different stages of the process and avoid unnecessary delays. Here are the key steps you should know.
Which Events Are Covered by Mortgage Insurance ?
The events covered depend on the guarantees included in your policy.
The most common guarantees include:
- Death.
- Total and Permanent Loss of Autonomy (TPLA).
- Temporary Total Disability (TTD).
- Permanent Total Disability (PTD).
- Permanent Partial Disability (PPD).
Each insurance policy specifies its own conditions of cover, exclusions and claims procedures.
How Do You Report a Claim ?
If a covered event occurs, you should notify your insurer as soon as possible.
Depending on the type of claim, the notification may be made by :
- The insured person.
- A family member.
- A legal representative.
Once the claim has been received, the insurer opens a claims file and verifies that the conditions set out in the insurance policy have been met.
The sooner the claim is reported, the smoother and faster the assessment process is likely to be.
Which Documents Are Usually Required ?
The documents requested vary depending on the nature of the claim.
In the Event of Death
The insurer will generally request:
- A death certificate.
- A copy of the mortgage agreement.
- The mortgage repayment schedule.
- A medical certificate, where required under the policy.
In the Event of Disability or Temporary Incapacity to Work
The insurer may ask for :
- Medical certificates.
- Sick leave certificates.
- Decisions issued by the French Social Security system or the relevant social protection authority.
- Proof of income or employment status.
In some cases, the insurer may also require an independent medical assessment.
Waiting Period vs Deferred Period: What’s the Difference ?
These two concepts are often confused, even though they refer to different stages of the insurance policy.
The Waiting Period
The waiting period begins when the insurance policy comes into effect.
If a claim occurs during this period, certain guarantees may not yet apply.
Not every guarantee is subject to a waiting period, and its duration depends on the policy.
The Deferred Period
The deferred period starts after the insured event has occurred.
For example, if your Temporary Total Disability (TTD) cover includes a 90-day deferred period, the insurer will begin making payments from the 91st day of your work stoppage.
The most common deferred periods are :
- 30 days.
- 60 days.
- 90 days.
- 180 days.
Fixed Benefit or Indemnity-Based Cover ?
Mortgage Insurance generally operates under one of two compensation methods.
Fixed Benefit Cover
With a fixed benefit policy, the insurer pays the mortgage repayments specified in the contract, regardless of any other income or compensation received by the insured person.
This approach generally provides broader financial protection.
Indemnity-Based Cover
With an indemnity-based policy, the insurer takes into account any replacement income already received from sources such as :
- Social Security.
- Income protection insurance.
- Your employer.
As a result, the insurance benefit may be reduced so that your total compensation does not exceed your actual loss of income.
This is an important point to consider when comparing Mortgage Insurance policies.
A Practical Example
Julien, a French expatriate living in Portugal, owns an apartment in France financed through a mortgage.
Following an accident, he is unable to work for several months.
His Mortgage Insurance includes Temporary Total Disability (TTD) cover with a 90-day deferred period and fixed benefit compensation.
Once the deferred period has expired, the insurer begins paying his monthly mortgage repayments without taking into account the other benefits he receives.
Thanks to this cover, Julien is able to keep his property without experiencing financial hardship.
Tips to Make the Claims Process Easier
A few simple precautions can help make the claims process much smoother:
- Keep a complete copy of your insurance policy.
- Make sure you understand exactly which guarantees you have selected.
- Check the waiting periods and deferred periods that apply to your policy.
- Submit all requested documents as quickly as possible.
- Notify your insurer immediately after the insured event occurs.
- Whenever possible, choose a fixed benefit policy, which generally offers broader protection.
Being well prepared often speeds up the claims process and reduces unnecessary administrative delays.
Conclusion
Mortgage Insurance claims follow a structured process. Reporting the claim promptly, providing a complete file and fully understanding your guarantees will help ensure your mortgage is protected when you need it most.
Before choosing a Mortgage Insurance policy, it is essential to compare not only the premiums but also the claims process, waiting periods, deferred periods, compensation methods and policy exclusions. These factors can make a significant difference when an unexpected event occurs.
Would you like to make sure your Mortgage Insurance will truly protect you if you ever need to make a claim ? France Protect Insurance helps French expatriates, non-residents and residents compare policies, assess guarantees and choose Mortgage Insurance tailored to their personal circumstances and property investment in France.