Buying a home is a huge step that requires a lot of planning and responsibilities. From the loan application stage to completing the purchase process, you’re sure to spend a lot of money. While the need for insurance policies like life insurance may be debatable, your home insurance shouldn’t be. If you have a mortgage on your home, property insurance is actually required by the lender in order to protect their investment.
Considering how much it costs to own a home, it is a wise choice to get high-quality home insurance coverage to protect your investment from unforeseen circumstances. There are many insurance coverage options to choose from based on the identified risks you’re likely to face. For example, getting fire damages insurance is essential for people who live in areas prone to wildfires. This insurance coverage may be the difference between your financial stability and huge debt when disasters happen.
Understanding the different levels of protection home insurance offers is important, but you should also understand the factors that can render your insurance policy useless. To ensure the protection of your home, this article will identify some of the factors that can invalidate your home insurance.
Leaving The Home Unoccupied
When purchasing home insurance for your property, you must note all of the important details on the insurance contract. Some insurers often specify the number of days you are allowed to leave your home vacant. Vacant days are defined as the number of days the policyholder or their family members are absent from the property. The standard number of days may also change based on seasons. Certain seasons of the year can be deemed dangerous, thus putting the home at risk, especially when the policyholder or their family aren’t around to take proper steps.
To prevent your insurance coverage from being wiped off, it is recommended that you pay attention to the occupation details of your homeowners’ insurance and seek confirmation from your insurance agent or policy when in doubt.
Not Informing Your Insurer About Incidents
Homeowners often feel the need to hide incidents from their insurers. It is recommended you inform your insurance provider of any happenings in the home as soon as they arise. Whether a part of your room got burnt or there was a water incident, be sure to keep your insurer informed. Keeping quiet about damages of any magnitude, even if you don’t wish to make a claim, can invalidate your contract and render it void. Failing to contact your insurer when accidents happen can also prevent you from making claims at a later date.
Not Contacting Your Insurer When Something Changes
Making changes to your home for curb appeal or other reasons may sound good. However, those changes can significantly impact the contract you’ve signed with your insurer. Contact your insurer when planning a home remodel or looking to add new structures to your property. Adequately informing your insurer will give them enough time to look at your policy and update it accordingly. Failing to inform your insurance provider about changes to your residence can violate the terms of the agreement and render it null and void.
Always remember that you cannot make any insurance claim if you’ve voided the terms of your contract with your insurer, regardless of how much your premium is. A void home insurance policy exposes you to financial instability on all fronts, so take every precaution to avoid it.
Using Your Home For Business Purposes
Home insurance is meant to cover your home as a residential property. Converting a part of your home for business purposes makes it a commercial property where business transactions are handled. This may be in total violation of your insurance policy and can expose you to a higher level of risk, especially in the event of a work accident or a disaster.
There are home office insurance policies that can be taken out to protect you and your business as you work from home, which we recommend. Failing to declare that you run a business from your home may put you at a greater risk.
Informing your insurance provider when you decide to start a business from your home gives you the chance to review the existing contract and buy add-on coverage that offers complete protection for both your home and your business.
Renting Out a Part Of Your Home To Others
Some homeowners may rent out a part of their homes to make extra money on the side, especially if it is a big house. This may not seem like a huge problem to the homeowner, especially as they believe their home is covered. However, this action threatens their home insurance policy.
Insurance providers often base home insurance policies on the fact that the policyholder and their family will be the main occupants. To that extent, insurance providers expect them to have a certain level of care in handling and maintaining the property. However, renting the home for commercial purposes violates the agreement and increases the chances of damages to the property.
If you wish to bring a tenant into your home, it is best to communicate this with your insurance provider. You can then address any policy changes and work out a legal agreement to cover your home under the new development.
Renovating Your Home Without Notice
Home renovation is often a complex and comprehensive project. It may involve a complete change in the structure and function of certain spaces in the home. Such changes can affect the terms of the existing insurance contract, which is why homeowners should either review their policy again or speak to their insurance provider.
Informing your insurance provider of any major renovation project allows them to compare the old property and the new layout, factor the added risks for the new building, and provide appropriate feedback, advice, or policy modification to keep the property protected.
Inflating Your Home’s Value On Your Contract
Homeowners may sometimes inflate the cost of the items they have in their homes, especially when claiming a disaster. However, most insurance companies are familiar with these items, their market value or average value, and can use the information to judge how much the policyholder gets in compensation. In some cases, property owners may be denied access to compensation if they have been deemed fraudulent in their estimation of their property’s value.
Protect your home from damages and protect your pocket from suffering losses due to void home insurance policies. Speak to an insurance agent today by visiting https://www.millerhanover.com
Miller Hanover Insurance
334 High St, Hanover, PA 17331
Contact Number: (717) 637-9265
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