Home insurance provides a critical safety net for homeowners, but there are several scenarios that can lead to a voided policy. Here are 20 things that homeowners should be wary of to ensure their insurance remains in good standing.
Unreported Renovations
Any significant renovations that increase your home’s value need to be reported to your insurance company. If you don’t, you might find your policy voided for not disclosing critical information that could affect coverage terms.
Home Business Activities
Running a business from your home without informing your insurer can lead to a voided policy, as commercial activities often require different insurance due to higher risks.
Vacancy Beyond Allowed Period
Most insurance policies specify how long a home can remain vacant. Leaving your home unoccupied for longer than this period without notification can result in your insurance being voided due to the increased risk of theft and damage.
Ignoring Maintenance Issues
Letting your property fall into disrepair through neglect can void your insurance. Insurers expect homeowners to maintain their property in good condition to prevent avoidable damages.
False or Inaccurate Information
Providing inaccurate information, whether about the property’s condition or your claims history, can lead to your policy being voided. Accuracy is crucial as insurers base their risk assessment and premium calculations on this information.
Criminal Activities
If illegal activities take place in your home, your insurance can be voided. This is because such actions drastically increase the risk to the insurer and are grounds for immediate policy termination.
Dangerous Dog Breeds
Keeping certain dog breeds considered dangerous by your insurer without their knowledge can void your policy, especially if an incident occurs. Insurance companies often have lists of breeds they consider a liability.
Trampolines and Pools Without Proper Safety Measures
Having a pool or trampoline without the necessary safety precautions, such as fencing, can lead to a voided policy due to the increased risk of accidents and liability issues.
Failure to Install Security Systems
In areas deemed high-risk, failing to install recommended security systems can void your insurance. This is particularly true if a burglary or vandalism occurs and the absence of security measures is deemed negligent.
Short-Term Rentals
Using your property for short-term rentals without adjusting your policy accordingly can lead to voidance. This change in use introduces new risks and liabilities not covered under standard homeowner policies.
High-Risk Recreational Equipment
Not disclosing ownership of high-risk recreational equipment to your insurer can void your policy. Such items can increase the likelihood of injury claims on your property.
Unpermitted Construction
Undertaking construction without the necessary permits not only risks legal penalties but can also void your home insurance, especially if the unpermitted work leads to damage or increases the home’s risk profile.
Hazardous Conditions
Allowing hazardous conditions like toxic mold or structural damage to persist can lead your insurer to void your policy. Homeowners are expected to address such issues promptly to prevent extensive damage.
Filing Fraudulent Claims
Insurance fraud, including exaggerating claims or fabricating damages, is a serious offense that will not only void your policy but could also lead to criminal charges.
Significant Changes in Property Use
Changing your property’s use, such as converting it into a rental or commercial space without notifying your insurer, can result in a voided policy because different uses carry different risks and require different types of insurance coverage.
Exotic Pets
Owning exotic or potentially dangerous pets without informing your insurance company can void your policy. Insurers need to know about any unusual liabilities, including pets that could cause injury.
Ignoring Safety Regulations
Failing to adhere to local safety regulations, whether ignoring building codes or fire safety standards, can lead to your insurance being voided. Compliance with these regulations is considered a basic homeowner responsibility.
Natural Disaster Damage without Specific Coverage
Experiencing damage from a natural disaster not covered under your standard policy, like flooding or earthquakes, without additional specific coverage leaves you unprotected. It can highlight gaps in your insurance protection.
Pest Infestations
Not addressing pest infestations, which lead to significant damage, can void your insurance. It’s seen as preventable neglect, as homeowners are expected to take action to mitigate such issues.
Not Updating Policy After Significant Life Changes
Significant life changes, such as a marriage, divorce, or the birth of a child, necessitate updates to your insurance policy. Failing to make these updates can lead to voided coverage, especially if claims arise that involve new family members or changed living situations.