3 Things That Can Void a Home Insurance Policy

Common errors that could result in having your homeowners insurance policy canceled.

You have homeowners insurance. You know you have coverage to protect your home and belongings from the worst, namely fire and theft. But do you know what can void a home insurance policy? If you don’t know your policy like the back of your hand, you may not know what can cause your insurance to get canceled. Check out a few of the common errors.

Being away from home for an extended period.

Say you go away on vacation for a month. Maybe you own a couple of different properties and you divide your time up between them all. If you leave your home vacant, not only are you exposing it to unique risks, but you could also void your home insurance policy if an accident does occur. If you leave your home vacant, aim to have someone check in on the property often. Vandalism, burst water pipes, and worse can occur. Most insurance companies specify what to do if you plan to be away so that your policy remains valid.

Having a home-based business.

You’ve struck it out on your own and finally started your own business. You’ve made the spare room into an office and you’re just getting the business off the ground. Without thinking about it, you could have invalidated your home insurance policy. If you have clients or employees coming to the house, own expensive equipment, or keep inventory in your house, be aware you may need additional information if you want to protect your business.

Making major repairs and renovations.

If you want to make major repairs and renovations to your property, be sure to alert your insurer. This is particularly important if the renovations would increase the value of your home such as an addition, alarm system, solar panels, wiring/plumbing, a new roof, or a pool. If the value of your property has risen – and potentially your liability risk – and your insurer doesn’t know about your new renovations, your coverage may not be applicable.

Change of deeded ownership or lender.

If you have added another name to the title of the property, like a spouse, life partner, child, or transferred the title into a family trust, you need to correct the policy holder named on the policy. It is also important that when you refinance your home, or the loan company changes do to a sale of the mortgage to another company, that you update the lender loss payable on your policy. Not having the entities named correctly on the policy may mean that a loss reimbursement will not go to the correct people/entities, or payment could be held up for a considerable time period.

Your homeowners insurance is designed to safeguard your property when it needs the most protection. Contact the team Lou Aggetta Insurance Services in Pleasant Hill to get started on your tailored policy.